Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — Investor Day (April 2023)
44 slides from Amg Critical Materials's investor day presentation, April 2023
Slide 1: Lithium Hydroxide Battery-Grade Refinery, Bitterfeld, Germany
LITHIUM HYDROXIDE BATTERY-GRADE REFINERY BITTERFELD, GERMANY
Slide 2: AMG Lithium's Value Chain
AMG LITHIUM’S VALUE CHAIN AMG operates a value chain from mining all the way down to hydroxide bg for batteries Technical Battery Lithium Lithium Grade (tg) Grade (bg) LiOH Concentrate LiOH / LiOH Batteries Carbonate Convert Lithium Convert tg Solid State Spodumene concentrate LiOH to bg Batteries t
Slide 3: The Mibra Mine, Brazil
THE MIBRA MINE, BRAZIL 3
Slide 4: The Bitterfeld Refinery, Germany, Module 1
THE BITTERFELD REFINERY, GERMANY, MODULE 1 Mibra Mine (spodumene) Carbonate Tolling until 2026 China Tolling Startup 2026 Brazil German Refinery Existing Solid-State Cathode FEL3 Pilot Producers External End Markets 4
Slide 5: Lithium Hydroxide BG Refinery in Germany – Status
LITHIUM HYDROXIDE BG REFINERY IN GERMANY – STATUS 5
Slide 6: Module 2-5
MODULE 2-5 Short Term Medium/Long Term AMG Third Party TG lithium Tolling Resource Spodumene products Partner Projects China Tolling Carbonate Brazil (FEL3), Spodumene, LiOH German Refinery Existing AMG Future Projects Solid-State Cathode Tolling Pilot Producers Partner External End Markets 6
Slide 7: Developing Additional (Affiliated) Resources
DEVELOPING ADDITIONAL (AFFILIATED) RESOURCES AMG Resource Development Support Spodumene production know how Engineering / Project Management Offtake contracts (with or without KfW) Project Financing / Equity Equity participation 7
Slide 8: Projected Global Electric Vehicle Growth
PROJECTED GLOBAL ELECTRIC VEHICLE GROWTH CAGR 2022-2035 17% 16% 15% 9% Source: Lithium-Forecast-Benchmark-Mineral-Intelligence Q4-2022 8
Slide 9: The LIVA Origin
THE LIVA ORIGIN 9
Slide 10: Lithium: Upstream Growth Strategy
LITHIUM: UPSTREAM GROWTH STRATEGY
Slide 11: Brazil Operations
BRAZIL OPERATIONS Existing Operations & Ongoing Expansion Lithium Carbonate Future Expansion Tantalum Grinding Crushing Expanded Spodumene Lithium Carbonate Separation Concentration Plant Chemical Plant Lithium Carbonate Packaging Spodumene Calcination and Leaching Spodumene Filtering and Storage Ex
Slide 12: Spodumene Expansion
SPODUMENE EXPANSION • Increase production capacity 45% to 130k mt per year • Focus on process optimization to improve lithium metallurgical recovery • Enhanced robustness to address naturally occurring mine variations • Reduce material handling downtime 12
Slide 13: AMG Is a Low-Cost Spodumene Producer
AMG IS A LOW-COST SPODUMENE PRODUCER • The Mibra mine is a long-term tantalum concentrate producer and is the largest conflict-free producer of tantalum in the world • Mibra’s tantalum production is the key reason for $461/mt cost per ton the mine’s low-cost spodumene position delivered to China, •
Slide 14: Technical Grade Lithium Chemical Plant
TECHNICAL GRADE LITHIUM CHEMICAL PLANT Preliminary Estimates: • Investment: $250M • Commissioning: End of 2025 • Capacity: 16.5 mt Technical Grade Lithium per annum • Delivered cost to Germany less than $10,000 /mt; assuming spodumene at cost for conversion in Brazil • TG Carbonate from Brazil vs Up
Slide 15: Sustainability
SUSTAINABILITY • Across all Brazil sites, Lost Time Rate of 0.14 and Recordable Rate of 0.42 compare favorably to Bureau of Labor Statistics Industry Benchmarks: 1.2 Lost Time Rate and 4.1 Recordable Rate (88% and 90% better, respectively). • In 2021, AMG Brazil was awarded a Recognition on Good Sup
Slide 16: Local Community
LOCAL COMMUNITY • The company prioritizes local culture and building a relationship of trust and mutual respect and prioritizes hiring locally. ➢ More than 70% of employees are local hires ➢ The Young Apprentice Program, a partnership with SENAI, Nacional Service of Industrial Learning, is an intern
Slide 17: Mibra Resource – 2021
MIBRA RESOURCE – 2021 Category Ore (Mt) Li2O Grade Li2O (mt) LCE (mt) Measured 2.186 0.94% 20,237 50,046 Indicated 15.304 1.13% 171,330 423,698 Measured & Indicated 17.490 1.10% 191,566 473,744 Inferred 3.744 1.12% 41,914 103,654 Resource Category Measured Indicated Inferred 17
Slide 18: Strategic Exploration Projects Brazil
STRATEGIC EXPLORATION PROJECTS 9 Mineral Rights. Geochemical results show Ceará presence of Lithium, Tantalum and Tin. Ongoing drilling campaign BRAZIL 8 Mineral Rights. Geochemical results show Paraíba presence of Lithium, Tantalum and Tin New exploration project to delineate Minas subsurface pegma
Slide 19: Lithium Hydroxide BG Refinery in Germany - Status
LITHIUM HYDROXIDE BG REFINERY IN GERMANY - STATUS 19
Slide 20: Slide 20
Slide 21: Lithium Hydroxide BG Refinery – Timeline
LITHIUM HYDROXIDE BG REFINERY – TIMELINE • Production of highly-refined, battery-grade Lithium hydroxide. • Module 1 with 20,000 MT/yr capacity, further modules up to 100,000 MT/yr in total. • Located in Bitterfeld/Germany: access to all required energies and infrastructure. • Start up in Q4 • Expec
Slide 22: Module 1: Lithium Supply Chain
MODULE 1: LITHIUM SUPPLY CHAIN Mibra Mine (Spodumene) Spodumene to Carbonate Brazil China Tolling Start up 2026 (until 2026) Carbonate to Hydroxide Germany Lithium Hydroxide BG Module 1 Cathode Producers 22
Slide 23: Lithium Feedstock Sources Module 1
LITHIUM FEEDSTOCK SOURCES MODULE 1 25 LiOH Feedstock in ‚000 mT 20 15 10 5 0 2023 2024 2025 AMG Brazil Purchase of LiOH TG / Li2CO3 Strategic Offtake Partners • AMG Brazil: only volumes not covered by Spodumene contracts. • LiOH BG qualification during 1st half of 2024. 23
Slide 24: Module 1: Lithium Hydroxide Offtake
MODULE 1: LITHIUM HYDROXIDE OFFTAKE Existing offtakes at runrate 2025 20,000 2,000 • AMG has signed a binding supply agreement with Korean EcoPro for an 3,000 initial three-year term to deliver a 15,000 binding 5,000 MT/yr plus an optional 5,000 MT/yr to EcoPro BM’s CAM- 5,000 facility in Debrecen-H
Slide 25: Indicative Margin Development to a Fully Backward Integrated Lithium Company
INDICATIVE MARGIN DEVELOPMENT TO A FULLY BACKWARD INTEGRATED LITHIUM COMPANY Technical Grade Purchase: Cost Margin Represents the margin of the Bitterfeld plant assuming the open market purchase of technical grade hydroxide. Tolling Brazil Spodumene: Represents the margin available to $/MT Bitterfel
Slide 26: Game Changer: New AMG Supply Chain Concept
GAME CHANGER: NEW AMG SUPPLY CHAIN CONCEPT 26
Slide 27: Growth: AMG Lithium Sourcing Strategy
GROWTH: AMG LITHIUM SOURCING STRATEGY AMG Brazil 1 • Available Spodumene concentrate (SC) conversion via tolling arrangement (in place) • 2026: SC to Lithium Carbonate TG (LC) conversion in Brazil, LC to LiOH TG in Germany 2 Purchase LiOH TG / off grade 3rd Party Spodumene Concentrate (SC) Offtakes
Slide 28: Lithium Supply Chain – Module 2-5
LITHIUM SUPPLY CHAIN – MODULE 2-5 Short Term Medium/Long Term 3rd Party AMG Resource Spodumene Projects Lithium Lithium Lithium Carbonate Hydroxide Carbonate Tolling Partner from TG TG Tolling China Recycling Lithium Lithium Carbonate Hydroxide TG TG Lithium Carbonate TG to Hydroxide TG Lithium Hydr
Slide 29: Why Europe? EU Requires Large Volumes Lithium Hydroxide BG
WHY EUROPE ? – EU REQUIRES LARGE VOLUMES LITHIUM HYDROXIDE BG Estimated 2030 EU Lithium Market Balance (kMT LCE) 600,000 600,000 >300,000 MT annual 400,000 shortfall Recycling 200,000 Existing & Announced EU Li Projects 0 Demand Supply 2025: already announced European demand of ~300 ktpa LCEs for Ca
Slide 30: Why LiOH? Growing Demand Driven by High Nickel Battery Cathodes
WHY LIOH ? - GROWING DEMAND FOR LITHIUM HYDROXIDE BG DRIVEN BY HIGH NICKEL BATTERY CATHODES Lithium Demand in Rechargeable EV Demand for Lithium Batteries by Type Source: Lithium-Forecast-Benchmark-Mineral-Intelligence Q4-2022. Note: High Nickel includes NCM712, NCM811, NMX, NCA, NCMA, LNMO and othe
Slide 31: Current Lithium Salt Price Trend in China
CURRENT LITHIUM SALT PRICE TREND IN CHINA Fastmarkets LiOH / Li2CO3 BG spot prices 90,000 80,000 70,000 $/mt 60,000 50,000 40,000 30,000 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Li2CO3 BG CIF Asia LiOH BG CIF Asia Li2CO3 BG EXW China VA
Slide 32: Next Generation Automotive Battery Technology: All-Solid-State Batteries
NEXT GENERATION AUTOMOTIVE BATTERY TECHNOLOGY: ALL-SOLID-STATE-BATTERIES (ASSB) 4,000 Forecast Solid Electrolyte 60,000 7% Solid electrolyte market [MT] automotive [GWh] Battery demand / 3,000 50,000 6% Market penetration 5% 40,000 2,000 4% 30,000 3% 20,000 1,000 2% 10,000 1% 0 0 0% 2022 2023 2024 2
Slide 33: Our Portfolio: Solid Electrolytes and Lithium Sulfide
MARKET TREND: ALL-SOLID-STATE-BATTERIES (ASSB) OUR PORTFOLIO: SOLID ELECTROLYTES AND LITHIUM SULFIDE Precursors (Lithium Sulfide) Sulfidic Solid Electrolytes Lithium sulfide Standard Grade SG Standard product for solid electrolyte production Lithium sulfide Ultrafine Grade UG Premium product for ele
Slide 34: Global Customer Activities
GLOBAL CUSTOMER ACTIVITIES Current status: Projects with customers in: ▪ Europe (3x): development 1x 3x 2x projects & evaluation ▪ USA (1x): qualification 4x ▪ Japan (4x): qualification & evaluation projects ▪ Korea (2x): sampling & evaluation ▪ Addressable AMG customer potential: 6.000+ MT/a in 202
Slide 35: Lithium Sulfide & Solid Electrolyte Roadmap
LITHIUM SULFIDE & SOLID ELECTROLYTE ROADMAP 2023 2024 2025 2026 2028 2030 Market Feedback Sample results Market Market Commitment: Commercialization Technical & Design-in projects | MoUs | Supply agreements Solid electrolyte Construction Sales / qualification Sales / commercial. Products Demo Plant
Slide 36: LIVA Power Management Systems
LIVA Power Management Systems Project IPS7000, location: AMG Graphite, Hauzenberg, Germany
Slide 37: LIVA Approach: Concept of a Hybrid Battery
LIVA APPROACH: CONCEPT OF A HYBRID BATTERY Large scale energy storage systems: Hybrid Energy Storage System Managing the fluctuating power demand and power supply, integrating and shifting unsteady renewable energies (solar & wind) local Technical approach: power supply ► High power unit (Li-ion bat
Slide 38: Technical Advantage & Benefits of a Hybrid Energy Storage System
TECHNICAL ADVANTAGE & BENEFITS OF A HYBRID ENERGY STORAGE SYSTEM (‘HESS’) LIVA´s battery technology approach: use respective KPI advantages (key performance indictors) Advantage & Benefits Performance profile virtual HESS ► Broad Range of industrial and grid scale applications Cycle stability & life
Slide 39: Applications LIVA Hybrid Energy Storage Systems
APPLICATIONS LIVA HYBRID ENERGY STORAGE SYSTEMS Energy applications ▪ Prosumer: Optimized self consumption and Shifting self-sufficiency with solar & wind ▪ Efficient off-grid & island solutions Island off-grid ▪ Reducing CO2 emission up to -80% vs. Diesel gensets. Reduce electricity costs up to -55
Slide 40: Market of the Applications
MARKET OF THE APPLICATIONS Behind the meter Grid side Island Power supply Island Supply-side markets off-grid Grid service HP charging off-grid Shifting Electricity & infrastructure: Industries: ▪ Utilities (electricity producer) ▪ Energy intensive ▪ Transmission grid operators industries ▪ Local el
Slide 41: Value Chain: Integration with AMG Accelerates LIVA's Growth
VALUE CHAIN: INTEGRATION WITH AMG ACCELERATES LIVA’S GROWTH Worldwide sourcing of LIVA delivers a customized, standard parts & components turnkey facility ▪ Full-service engineering, AMG Group procurement and construction Power Software LIVA/AMG (“EPC”) of a Hybrid Energy Electronic ~/= LIVA Enginee
Slide 42: LIVA Is Planning a Rapid Expansion of Hybrid Energy Storage Systems
LIVA IS PLANNING A RAPID EXPANSION OF HYBRID ENERGY STORAGE SYSTEMS (“HESS”) 1. AMG Graphite 2. Wipotec 3. AMG Titanium 6. Large Scale Hauzenberg, Germany Kaiserslautern, Nuremberg, Germany Industrial Customer Current Use: Germany (Electro Steel) 4. AMG Chrome ▪ Peak Shaving Planned Uses Rotherham,
Slide 43: Thank You!
THANK YOU! Li-ion High power battery racks Vanadium Catholyte & Anolyte Power electronics DC-DC converters DC-AC inverters Modular 16-stack Hybrid Energy Storage System (HESS) cabinet units ▪ 1.5-Level design, underground tank system with passive & active thermal management ▪ VRFB energy storage: 3.
Slide 44: LIVA Battery, Lithium Lab, Lithium Hydroxide – Bitterfeld, Germany
LIVA BATTERY LITHIUM LAB LITHIUM HYDROXIDE – BITTERFELD, GERMANY ENGINEERING – HANAU, GERMANY MELTSHOP – ZANESVILLE, OHIO 44 VANADIUM, MOLYBDENUM AND NICKEL – CAMBRIDGE, OHIO VANADIUM, MOLYBDENUM AND NICKEL – ZANESVILLE, OHIO