Sparton Resources Inc. · TSXV:SRI
Sparton Resources — Ferroalloynet.com Vanadium Forum 2019
53 slides from Sparton Resources's conference presentation, Mar 7, 2019
Slide 1: Ex China Vanadium Market
Ex China Vanadium Market Terry Perles Ferroalloynet.com Vanadium Forum Chengde, China March 7, 2019
Slide 2: Objectives
Objectives • Communicate the drivers affecting changes to vanadium consumption outside of China • Vanadium consumption outside of China • Production of vanadium outside of China • China vanadium exports • Total vanadium supply outside of China • Vanadium demand outside of China • Vanadium supply/dem
Slide 3: Vanadium Consumption ex China
Vanadium Consumption ex China TTP Squared, Inc. 3/7/2019 3 terry@ttpsquared.com
Slide 4: Vanadium Consumption
Vanadium Consumption • Roughly 90% of current vanadium consumption occurs in the steel industry. • Roughly 4% of annual vanadium consumption occurs in the titanium industry where vanadium is used to make titanium alloys for commercial aerospace, defense, industrial applications and consumer goods •
Slide 5: Drivers to growth in ex China V Consumption
Drivers to growth in ex China V Consumption • Changes in ex China steel production volumes • Changes in ex China specific vanadium consumption rates • Potential new applications TTP Squared, Inc. 3/7/2019 5 terry@ttpsquared.com
Slide 6: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 6 terry@ttpsquared.com
Slide 7: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 7 terry@ttpsquared.com
Slide 8: Vanadium Consumption ex China
Vanadium Consumption ex China 70,000 2012-2018 actual CAGR 1.8% 2018-2020 forecast 60,000 50,000 40,000 MTV 30,000 20,000 10,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total European Union (27) Total North America Total Asia Non-China/India Total India Total C.I.S. (
Slide 9: Ex China Vanadium Consumption Summary
Ex China Vanadium Consumption Summary • Ex China steel production has grown by 0.8% compound annual growth rate (CAGR) 2012-2018. We expect ex China steel production to grow at a CAGR of 1.3% 2018-2025 • The ex China specific vanadium consumption rate has grown at a CAGR of 1.2% 2012-2018. our proje
Slide 10: ex China Vanadium Production
ex China Vanadium Production TTP Squared, Inc. 3/7/2019 10 terry@ttpsquared.com
Slide 11: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 11 terry@ttpsquared.com
Slide 12: ex China Vanadium Production History
ex China Vanadium Production History • Vanadium production ex China has varied from 33,000 – 38,000 MTV from 2011-2018. • The demise of Highveld Steel in South Africa had a major impact on global vanadium supply beginning in 2015. • The ramp up of production at the Largo Maracas mine in Brazil has a
Slide 13: Ex China – Short Term New Sources of Production
Ex China – Short Term New Sources of Production • Vanadium production is limited by the availability of economically viable raw materials. • In the near term there are limited sources of potential new vanadium raw materials outside of China. • Largo resources has announced plans to expand the Maraca
Slide 14: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 14 terry@ttpsquared.com
Slide 15: Ex China vanadium production projected to grow to 2025
We project ex China vanadium production from existing sources will grow from 37,875 MTV in 2018 to 49,803 MTV in 2025, or a 4.0% CAGR. TTP Squared, Inc. 3/7/2019 15 terry@ttpsquared.com
Slide 16: China Vanadium Exports
China Vanadium Exports TTP Squared, Inc. 3/7/2019 16 terry@ttpsquared.com
Slide 17: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 17 terry@ttpsquared.com
Slide 18: Chinese Vanadium Exports
Chinese Vanadium Exports • Chinese net exports of vanadium have varied from 7,500 MTV to 10,500 MTV per year in recent years • Chinese exports decreased in 2017 as a result of the ban on imports of vanadium slag and residues used as raw material for vanadium production in China • Exports increased t
Slide 19: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 19 terry@ttpsquared.com
Slide 20: Ex China Supply and Demand Balance
Ex China Supply and Demand Balance TTP Squared, Inc. 3/7/2019 20 terry@ttpsquared.com
Slide 21: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 21 terry@ttpsquared.com
Slide 22: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 22 terry@ttpsquared.com
Slide 23: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 23 terry@ttpsquared.com
Slide 24: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 24 terry@ttpsquared.com
Slide 25: ex China Supply and Demand Balance
ex China Supply and Demand Balance • Assuming no new sources of supply • We project the world ex China supply will continue to be less than ex China demand through 2020 • Ex china vanadium inventories have decreased by about 11,000 MTV since the market bottomed out in December 2015 • Inventories ex
Slide 26: New Sources of Supply
New Sources of Supply TTP Squared, Inc. 3/7/2019 26 terry@ttpsquared.com
Slide 27: Potential New Sources of Vanadium ex China
Potential New Sources of Vanadium ex China TTP Squared, Inc. 3/7/2019 27 terry@ttpsquared.com
Slide 28: Potential New Sources of Supply of V
Potential New Sources of Supply of V • Outside of China there are more than 80 potential new vanadium projects being promoted. • Historically the time line for construction of a new primary vanadium mine and mill is 5 years from receipt of construction financing until first production • Historically
Slide 29: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 29 terry@ttpsquared.com
Slide 30: Summary
Summary • Vanadium consumption today is driven primarily by use in the steel industry. Changing steel production volumes and changing specific vanadium consumption rates are the major variables impacts vanadium consumption • Vanadium production is limited by the availability of economically viable r
Slide 31: Summary
Summary • Total vanadium supply ex China is anticipated to be less than ex China demand through 2019. • Growth in supply from existing sources combined with potential new sources and ongoing Chinese exports could result in a balanced market ex China in 2020. • Longer term potential new vanadium proj
Slide 32: Vanadium Redox Flow Batteries
Vanadium Redox Flow Batteries TTP Squared, Inc. 3/7/2019 32 terry@ttpsquared.com
Slide 33: TTP Squared, Inc. terry@ttpsquared.com
TTP Squared, Inc. 3/7/2019 33 terry@ttpsquared.com
Slide 34: Global Vanadium Demand in VRB’s
Global Vanadium Demand in VRB’s Source: Roskill Near term demand from VRB’s is forecast to drop in 2019 as a result of high prices TTP Squared, Inc. 3/7/2019 34 terry@ttpsquared.com
Slide 35: Vanadium Redox Flow Batteries
Vanadium Redox Flow Batteries • The high vanadium price is projected to result in a decrease in deployment of vanadium in VRB’s in 2019 relative to 2018. it is difficult to forecast future demand in this application due to the price sensitivity to vanadium. • Today competition for VRB’s is primarily
Slide 36: Vanadium Redox Flow Batteries
Vanadium Redox Flow Batteries • In recent times the market for grid level energy storage has been mostly related to short duration applications. In this market Li ion can compete with VRB’s and given the fact that Li ion technology is more mature than VRB technology the capital cost of VRB systems h
Slide 37: Vanadium Redox Flow Batteries
Vanadium Redox Flow Batteries • The cost of producing electricity from solar panels is arguably today the cheapest source of new electrical power. As a result we are seeing massive growth in solar power production in many regions of the world. • Solar power can only be produced when the sun is shini
Slide 38: California Duck Curve
California Duck Curve TTP Squared, Inc. 3/7/2019 38 terry@ttpsquared.com
Slide 39: Vanadium Redox Flow Batteries
Vanadium Redox Flow Batteries • The massive growth in solar power production is resulting in a growing need for long duration storage technologies to support load leveling and peak shaving applications. • The economic benefit of technologies that can allow solar power produced in the middle of the d
Slide 40: Summary
Summary • Vanadium redox flow batteries are reaching a state of maturity where they are cost competitive at normal vanadium market prices with other technologies and offer performance advantages in many applications • High vanadium prices have negatively impacted the deployment of vanadium in flow b
Slide 41: New Applications for Vanadium
New Applications for Vanadium TTP Squared, Inc. 3/7/2019 41 terry@ttpsquared.com
Slide 42: Transformers: the underappreciated properties of vanadium oxides
TRANSFORMERS: THE UNDERAPPRECIATED PROPERTIES OF vanadium oxides q Variable valence -1 to +5 q Tetrahedral, square pyramidal, and octahedral coordination environments q d-orbitals not too narrow and not too broad q Wide range of open ordered and disordered defect structures, non- stoichiometry, and
Slide 43: Where does vanadium go NEXT?
Where does vanadium go NEXT? CASE STUDIES IN ENERGY APPLICATIONS OF VANADIUM: qTHERMOCHROMIC FENESTRATION (SMART WINDOWS!) qINTERCALATION BATTERIES qENERGY-EFFICIENT COMPUTING qARTIFICIAL LEAF FOR WATER SPLITTING 4 3
Slide 44: Thermochromic Fenestration (Smart Windows!)
Thermochromic FENESTRATION (SMART WINDOWS!) q 40% of energy consumed in Mumbai, India goes toward space cooling q China added 50M home air-conditioning units in 2010 44 Breakdown of building energy consumption q By 2050 27% of all global warming will be due to coolant gases q $15B q 140M metric tons
Slide 45: Buildings that Change with the Climate Light Without Heat
Buildings that Change with the Climate LIGHT WITHOUT HEAT Dynamic switching of optical properties as a result of phase transitions 45 Image from AIST Japan Image from AIST Japan Dr. Sarbarit Banerjee, Texas A&M University 4 5
Slide 46: Issues facing intercalation Batteries: Life beyond Li-ION
Issues facing intercalation Batteries: Life beyond Li-ION BATTERIES q Safety, safety, safety! q Materials criticality! Is there enough lithium? q A transformational breakthrough needed in energy and power densities? Jean-Marie Tarascon
Slide 47: Vanadium oxides for Intercalation Batteries
Vanadium oxides for Intercalation Batteries Layered 2D framework with room for Li-ions- But Li-ions run into bottle-necks De Jesus, L. R.; Horrocks, G. A.; Liang, Y.; Parija, A..; et al. Nat. Commun. 2016, 7, 1–9. Bhatt, M. D.; O’Dwyer, C. Phys. Chem. Chem. Phys., 2015, 17, 4799-4844. 4 7
Slide 48: A new phase of V2O5: a path to viability for Mg-ion batteries
A new phase of v2o5: a path to viability for Mg-ion batteries First new V2O5 structure in over 100 years ζ-MgxV2O5 q High voltage, high capacity, and high reversibility x z q Pathway to safe, earth-abundant, and large area batteries made from vanadium 5 nm Chalker, C. J., An, H., Zavala, J., Parija,
Slide 49: The “age of dark silicon”
the “age of dark silicon” q Modern microprocessors are energy guzzling because power consumption does not scale with transistor dimensions. q Cell-phones and personal electronics run hot! q Major roadblock to meeting future high-performance computing needs. M. B. Taylor, Solid-State Circuits Conf.,
Slide 50: Vanadium in the “age of dark silicon”
Vanadium in the “age of dark silicon” 10 µm q New “Mott” switching mechanisms and memory that are massively scalable in terms of power consumption C. J. Patridge, C. Jaye, H. Zhang, A. C. Marschilok, D. A. Fischer, E. S. Takeuchi, and S. Banerjee, Inorg. Chem. 2009, 48, 3145-3152. C. J. Patridge, T.
Slide 51: Splitting water with vanadium oxides to generate solar fuels
Splitting water with vanadium oxides to generate solar fuels q Hydrogen is an energy dense fuel that is combusted releasing water as the only by-product q Splitting water using sunlight –mimicking a leaf – to generate hydrogen would provide an endless fuel source q Oxidation of water is a huge chall
Slide 52: Splitting water with vanadium oxide to generate solar fuels
Splitting water with vanadium oxide to generate solar fuels q Miniature photosynthetic factories! q Vanadium oxides can be tuned to introduce specific electronic states that can be used to oxidize water. q Best-in-class performers that are building blocks for solar water electrolyzers. Pelcher, K. E
Slide 53: Summary
Summary • Vanadium will continue to support the efficient development of infrastructure required for economic opportunity in the developing world via the use of high strength low alloy vanadium steels • Vanadium flow batteries could become a critical part of the global electrical grid supporting the
Sparton Resources — Ferroalloynet.com Vanadium Forum 2019 on 6ix