Slide 1: Innovative Silicon Solutions
Innovative Silicon Solutions HIGH PURITY FROM QUARTZ NANO SILICON SILICON HPQ - SILICON OCTQX: HPQFF R E S O U R C E S TSX-V: HPQ www.HPQSilicon.com 1
Slide 2: Disclaimers
DISCLAIMERS This presentation includes certain “FORWARD-LOOKING STATEMENTS” All statements, (other than statements of historical fact included herein), including, without limitation, statements regarding future plans and objectives of the company, are forward-looking statements that involve various
Slide 3: Energy Storage Demand About to Explode
ENERGY STORAGE DEMAND ABOUT TO EXPLODE ENERGY STORAGE CAPACITY MUST INCREASE TO OFFSET THE VARIABILITY OF RENEWABLE ENERGY “Investment dedicated to energy storage will exceed $40 billion by 2040 ” Yayoi Sekine, energy storage analyst for BNEF www.HPQSilicon.com 3
Slide 4: We Are Only at the Start of a Long-Term EV Megatrend
WE ARE ONLY AT THE START OF A LONG-TERM EV MEGATREND EV adoption and vehicle sales (1) Leading EV manufacturer plans – over $300 billion committed 7 80 EV 3% 11% 28% Number of EV models announced (2) penetration 20 rate % 15 35 31 23 30 12 EV sales (million units) 25 10 20 47 15 28 12 10 10 5 3 20 0
Slide 5: But There Is a Battery Bottleneck
BUT THERE IS A “BATTERY BOTTLENECK” BATTERY PERFORMANCE HAS EVOLVED MUCH MORE SLOWLY THAN ELECTRONICS AND COMPUTERS Improvements have been made in battery technology, but they have not kept pace WHY IS BATTERY TECHNOLOGY EVOLVING SO SLOWLY? Batteries have evolved differently than electronics: • Elec
Slide 6: Breakthroughs in Materials Science
BREAKTHROUGHS IN MATERIALS SCIENCE Gravimetric Capacity LITHIUM-ION BATTERIES CAPACITIES ARE LIMITED BY GRAPHITE 3600 • In conventional batteries, the negative electrode or anode is made of carbon in the form of graphite. 10 X • Graphite is batteries limiting factor. 370 • Silicon allows for faster
Slide 7: HPQ Silicon Providing Battery Solutions
HPQ SILICON PROVIDING BATTERY SOLUTIONS Ø Since 2015 HPQ has implemented a Silicon Innovation Strategy Ø Currently advancing development of numerous silicon products Ø Creating silicon products to resolve Material Science issues Ø Breakthrough imminent with Nano Silicon for battery anodes Ø Cost eff
Slide 8: HPQ Value Proposition: Commercialize and Monetize
HPQ VALUE PROPOSITION: COMMERCIALIZE AND MONETIZE HPQ Mission: HPQ SILICON Silicon Solution Incubator RESOURCES INC Division & Subsidiaries' PUREVAP QRR Project HPQ NANO SILICON POWDERS INC Green Metallurgically Silicon Nano and High Purity Produced Solar Grade Field of interest Silicon Metal Silico
Slide 9: Growth in the EV Market to Drive Strong Demand for All Battery Materials
GROWTH IN THE EV MARKET TO DRIVE STRONG DEMAND FOR ALL BATTERY MATERIALS Recent increased # of Megafactories Raw material demand vs global lithium-ion cell / Megafactory capacity January 2020: 121 4,000 3,783 Lithium Graphite 3,500 Cobalt Nickel 3,000 2,809 2,716 2,500 March 2021: 199 kt 2,012 2,000
Slide 10: Today: Graphite Is Fundamental to Rechargeable Battery Anodes
TODAY: GRAPHITE IS FUNDAMENTAL TO RECHARGEABLE BATTERY ANODES Battery LFP NMC 111 NMC 532 NMC 811 NCA (cathode) chemistry Lithium 17% Lithium 15% Lithium 16% Lithium 16% Lithium 11% Nickel 29% Cathode Nickel 43% Nickel 68% Nickel 73% Other 83% Manganese 29% Manganese 24% Manganese 8% Cobalt 27% Coba
Slide 11: By 2030 Anodes May Contain Up to 30% Silicon
BY 2030 ANODES MAY CONTAIN UP TO 30% SILICON – A MASSIVE DEMAND Battery LFP NMC 111 NMC 532 NMC 811 NCA (cathode) chemistry Lithium 17% Lithium 15% Lithium 16% Lithium 16% Lithium 11% Nickel 29% Cathode Nickel 43% Nickel 68% Nickel 73% Other 83% Manganese 29% Manganese 24% Manganese 8% Cobalt 27% Co
Slide 12: Auto Manufacturers Pivoting Toward Silicon
AUTO MANUFACTURERS PIVOTING TOWARD SILICON Tesla's latest battery day presentation confirmed that the future of battery anodes will include Silicon. Tesla “…plans on removing graphite from the anode.” (NBCFM September 23, 2020 Research Flash) Porsche is researching high-performance batteries with si
Slide 13: Silicon Attractiveness
SILICON ATTRACTIVENESS YES, SILICON IS AWESOME, BUT INEXPENSIVE? NOT REALLY Silicon may be the most abundant element in earth’s crust after oxygen, but like all other energy metals (lithium, graphite, cobalt, nickel and others): Ø It does not exist in its pure state! Ø Expensive carbothermic process
Slide 14: The Challenges
THE CHALLENGES DEPLOYMENT OF SILICON (Si) IN BATTERIES FACES CHALLENGES THE BIG ONE • The volumetric fluctuations (>300 %) of Silicon (Si) during charge/discharge cycles leads to irreversible energy storage capacity loss. WHY • Repeated exposure of the fresh silicon surface to battery electrolyte le
Slide 15: Challenge: Economically Viable Solution
CHALLENGE: ECONOMICALLY VIABLE SOLUTION CURRENT APPROACHES TO SILICON USE HIGHLY ENGINEERED AND EXPENSIVE MATERIALS SILICON STRUCTURED SILICON STRUCTURED SILICON SILICON IN SIO GLASS IN GRAPHITE NANOWIRES NANOPOWDERS > 2,000 US$ / Kg > 3,000 US$ / Kg > 30,000 US$ / Kg > 20,000 US$ / Kg Presently: Si
Slide 16: HPQ - Developing Low-Cost Solutions
HPQ - DEVELOPING LOW-COST SOLUTIONS STARTING COMMERCIAL VALIDATION OF LOW-COST PROCESSES TO MAKE AND TRANSFORM SILICON HPQ is developing: A new scalable, versatile, low CAPEX & OPEX carbothermic process SILICON SILICON NANOPOWDERS NANOWIRES Material produced by PyroGenesis during proof of concept te
Slide 17: Solving the Silicon Puzzle for Batteries
SOLVING THE SILICON PUZZLE FOR BATTERIES HPQ NANO WITH HPQ NANO PUREVAPTM NANO Si REACTOR (NSiR) Ø With more than 20 years of experience developing and using plasma atomization to make metal powders for 3D printing PyroGenesis technical team is developing the PUREVAPTM Nano Si Reactor (NSiR). Ø The
Slide 18: HPQ Low-Cost Solutions vs Competition
HPQ LOW-COST SOLUTIONS VS COMPETITION CONVENTIONAL CARBOTHERMIC PROCESS SILICON TO SILANE GAS PROCESS QUARTZ TO SILICON REC SILICON SiCl4 HSiCl3 SiH4 Refined 3 time H2 RAW 2N Si Forms add To Get SILICON 98.0% to 99.5% Si 99.5% SiO2 + Low Electric Arc Energy Consumption: Dissolved in Silicon Trichlor
Slide 19: PUREVAP NSiR Near Term Pathway
PUREVAPTM NSiR NEAR TERM PATHWAY PROJECT MILESTONES AND INDICATIVE TIMELINE Process validation NSiR Design Manufacture & & optimization + Start of Phase 1 Proof of and Conversion Assembly of Gen1 NSiR production of Gen1 NSiR Si Nano powders Concept Test samples Q1 2020 Q3 2020 Q4 2020 December 2020
Slide 20: PUREVAP NSiR Scalable & Low-Cost
PUREVAPTM NSiR SCALABLE & LOW-COST Indicative Scaling-up Pathway Phase 4 Commercial Plant Phase 2 Gen 4 NSiR Proof of Commercial Scalability Gen 2 NSiR Proof of concept GEN2 QRR 0 Phase 3 Pilot Plant Phase 1 Gen 3 NSiR Bench Tests Gen 1 NSiR Batch Process Semi-Continuous Processes Design 50 Kg per 5
Slide 21: PUREVAP QRR – HPQ Fundamental Advantage
PUREVAPTM QRR – HPQ FUNDAMENTAL ADVANTAGE THE PUREVAPTM QRR: GAME CHANGING VERSATILITY VERSUS CONVENTIONAL PROCESS PUREVAPTM QUARTZ REDUCTION REACTOR (QRR) SCALABILITY AND CAPEX ADVANTAGES: SiO2 + Carbon A ONE STEP PROCESS UP TO 4N Si • New conventional plants are scalable by minimum increments of 3
Slide 22: PUREVAP QRR – Low Cost, Low Emissions
PUREVAPTM QRR – LOW COST, LOW EMISSIONS PUREVAPTM QRR OPEX VERSUS CONVENTIONAL Si PRODUCERS Silicon in the 2020s Inflation-adjusted prices are higher than they were in the early 2000s US spot price of 5.5.3 grade silicon vs. avg. operating cost at plants outside China and the CIS in real terms, $/t
Slide 23: HPQ – Other Silicon Business Opportunities
HPQ – OTHER SILICON BUSINESS OPPORTUNITIES Usages Global Megatrends DEMAND TO REACH 3.8 M MT WORTH ABOUT US$ 10 BILLION BY 2025 (CRU) • NEW PLANTS NEEDED TO MEET DEMAND GROWTH • GROWTH WILL BE DRIVEN BY DEMAND FOR CHEMICAL GRADE SILICON (2N+ Si) Ø Used as feedstock to make Silicones v Silicone's mar
Slide 24: PUREVAP QRR – Five Years in the Making
PUREVAPTM QRR – FIVE YEARS IN THE MAKING Phase 4 INDICATIVE SCALING-UP PATHWAY Commercial Plant Gen 4 QRR 2023 - Phase 2 Proof of Commercial Scalability Gen 2 QRR Completed in 2017 0 Proof of concept Phase 3 completed in Pilot Plant 2016 Phase 3 Commissioning and Pilot Plant Gen 3 QRR commercializat
Slide 25: Why Invest in HPQ Silicon?
WHY INVEST IN HPQ SILICON? UBS estimates that over the next ten years, the energy storage market in the United States alone could grow to as much as $426 billion, and there are many ways to buy into the surge! (CNBC Dec 30, 2019) HPQ – SILICON: AN INVESTMENT OPPORTUNITY TO PARTICIPATE IN THE SURGE!
Slide 26: HPQ Capital Structure
HPQ CAPITAL STRUCTURE Cash and Cash equivalent in hand $ 5,251,176 Share Price (April 21, 2021) $0.790 TM Dedicated Cash for PUREVAP QRR Pilot Plant $ 1,950,000 52 Week Low $0.060 In the money warrants and options $ 11,017,182 52 Week High $1.680 TOTAL CASH POSITION $ 18,218,358 Warrants Breakdown E
Slide 27: HPQ Share Performance 12 months
HPQ Share Performance 12 months www.HPQSilicon.com 27
Slide 28: Management, Board & Key Investors
MANAGEMENT, BOARD & KEY INVESTORS Management Bernard J Tourillon, BAA, MBA Chairman, President, CEO and Director Patrick Levasseur Independent Directors Vice-President, COO and Director Richard Mimeau, B.Sc. Noelle Drapeau, LLL, MBA, PMP Director Corporate Secretary and Director Peter Smith, PhD, P.
Slide 29: Consultants, Transfer Agent and Auditors
CONSULTANTS, TRANSFER AGENT AND AUDITORS Consultants/ Technical Advisors Marcel Drapeau, BA, BSC. Comm, LLL PyroGenesis Canada Inc Apollon Solar Sa Transfer Agent Computershare Auditors KPMG S.E.C.N.R.L. www.HPQSilicon.com 29
Slide 30: Contact
CONTACT Patrick Levasseur Bernard J. Tourillon, B.A.A, MBA Vice-President, COO and Director Chairman, President and CEO patrick.levasseur@hpqsilicon.com bernard.tourillon@hpqsilicon.com +1 514 262-9289 +1-514-907-1011 3000 Omer-Lavallée St, Suite 306 Montreal, Quebec, CANADA, H1Y 3R8 +1 514 846 3271