Slide 1: Albemarle Corporation Lithium Teach-in
Albemarle Corporation Investor Presentation Lithium Teach-in October 8th, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information presented in this presentation, the webcast and discussions that follow, including, without limitation, statements with respect to product development, market trends, price, expected growth and earnings, demand for our products, capital projects, ta
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures It should be noted that Adjusted net income attributable to Albemarle Corporation (“Adjusted earnings”), Adjusted diluted earnings per share attributable to Albemarle Corporation, Adjusted effective income tax rates, segment operating profit, segment income, pro-forma net
Slide 4: Albemarle Lithium
Albemarle Lithium Financials | TTM Applications $1.3B $441M 35% 20% Net Sales Adj. EBITDA1 Adj. EBITDA Margin1 20% 60% Segment Characteristics Business Environment • Access to three of the largest, highest grade • Strong long-term demand growth expected resources in the world • Highly dynamic, emerg
Slide 5: Each resource is unique – in many different respects
Each resource is unique – in many different respects • Based on our data and experience the Resource Scale primary determinants of project cost and success are: Resource Grade Weather ̶ Resource Grade ̶ Resource Scale Resource ̶ Chemistry Energy Chemistry & Intensity/Availability Technology Opportun
Slide 6: Mineral resources vary in quality, grade, and chemical profile
Mineral resources vary in quality, grade, and chemical profile Operating or Care & Maintenance Pre-production project ALB Resource Clay Resource 2.5% Australia - Greenbushes1 2.0% Canada Serbia Lithium Content (% Li20) Canada Zimbabwe Australia DRC 1.5% Australia Australia Australia Australia US – K
Slide 7: Brine resources have significant differences in concentration and chemistry
Brine resources have significant differences in concentration and chemistry 1,800 Operating or Care & Maintenance Pre-production project ALB Resource 1,600 1,400 Chile – Salar de Atacama1 Lithium Content (mg/L) 1,200 Chile 1,000 Argentina Argentina 800 Argentina Argentina 600 Argentina Argentina Arg
Slide 8: Conventional Processing: Brine and Hard Rock
Conventional Processing: Brine and Hard Rock Concentration Conversion Concentration + Purification Purification + Crystallization 5-7% Li2O Concentrate Lithium Carbonate Hard or Rock Lithium Hydroxide 0.5- 2.5% Li2O Purification Crystallization Mine Crushing Flotation Calcination Milling + Leaching
Slide 9: Key Chemical Routes to Lithium Hydroxide
Key Chemical Routes to Lithium Hydroxide COMMERCIAL PILOT CONCEPT CONCENTRATION CONVERSION Li Yield conversion Cost variable Capital conversion Energy F. Water intensity intensity Crystallization with Caustic + + + + + SPODUMENE Sulfuric Acid Purification by Flotation or Dense Crushing + Milling Med
Slide 10: Lithium Projects are Costly and Time-Consuming to Bring Online
Lithium Projects are Costly and Time-Consuming to Bring Online Type Location Source Project Start Production Start Australia Spodumene 2007 2017 • Mine-only projects tend to be spodumene, Australia Spodumene 2009 2017 concentrated in Australia Mine-Only Australia Spodumene 2014 2018 Australia Spodum
Slide 11: An Industry Leader with Significant Opportunity Ahead
An Industry Leader with Significant Opportunity Ahead 01 Global, competitively advantaged positions; access to three of the largest, highest grade resources in the world 02 Vertically integrated from natural resource to specialty performance products; extraction and specialty chemicals expertise 03
Slide 12: Lithium Use Evolves with Battery Technology Progression
Lithium Use Evolves with Battery Technology Progression Lithium Use-Intensity LITHIUM MATERIALS by Battery Component Legacy Advanced Next Frontier LiOH LiCl Anode Li2CO3 LiBr Electrolyte or Separator Li Metal Li2S Cathode First principle chemical models 2 ● ● used to estimate lithium use by Total Li
Slide 13: Appendix A: Non-GAAP Reconciliations
Appendix A Non-GAAP Reconciliations
Slide 14: Adjusted EBITDA - by Segment (twelve months ended)
Adjusted EBITDA - by Segment (twelve months ended) Twelve Months Ended ($ in thousands) Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Lithium Net income attributable to Albemarle Corporation $ 413,058 $ 424,881 $ 341,766 $ 301,837 $ 250,572 Depreciation and amortization 93,260 95,
Slide 15: www.albemarle.com
NYSE www.albemarle.com \ ALBEMARLE’