Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — ODDO BHF Forum January 2024
43 slides from Amg Critical Materials's conference presentation, January 2024
Slide 1: Critical Materials for a Sustainable Planet
CRITICAL MATERIALS FOR A SUSTAINABLE PLANET ODDO BHF Forum Presentation | January 2024 AMG CRITICAL MATERIALS N.V. Lithium Hydroxide Battery-Grade Refinery – Bitterfeld, Germany 1
Slide 2: Cautionary Note
CAUTIONARY NOTE This document contains proprietary information and is being provided solely for information purposes by AMG Critical Materials N.V. (The “Company”) and may not be reproduced in any form or further distributed to any other person or published, in whole or in part, for any purpose, exc
Slide 3: AMG Overview
AMG OVERVIEW AMG Vanadium – Zanesville, Ohio, USA 3
Slide 4: AMG: A Critical Materials Company
AMG: A CRITICAL MATERIALS COMPANY GLOBAL TRENDS CO2 emission reduction, circular economy, population growth, increasing affluence, and energy efficiency DEMAND Innovative new products that promote CO2 reduction, including materials with higher energy density and higher temperature resistance, as wel
Slide 5: AMG Provides Critical Materials to Advance a Less Carbon-Intensive World
AMG PROVIDES CRITICAL MATERIALS AND RELATED PROCESS TECHNOLOGIES TO ADVANCE A LESS CARBON-INTENSIVE WORLD A GLOBAL IMPERATIVE AMG’S ENABLED CO2 EMISSION REDUCTIONS FOR THE 21ST CENTURY (Million MT) AMG: 2022 99.4 ENABLING TECHNOLOGIES Products and processes saving 2021 79.0 CO2 emissions during use
Slide 6: AMG New Business Segments
AMG NEW BUSINESS SEGMENTS AMG LITHIUM AMG VANADIUM AMG TECHNOLOGIES • AMG’s Lithium segment spans • AMG Vanadium is the world’s • AMG Technologies is the the lithium value chain, reducing market leader in recycling established world market leader the CO2 footprint of both vanadium from oil refining
Slide 7: Strong Fundamentals, Adaptive to Global Disruption
STRONG FUNDAMENTALS, ADAPTIVE TO GLOBAL DISRUPTION • In November 2021, AMG entered into a new $350 million 7-year senior secured term loan B facility OPTIMIZED (“term loan”) and a $200 million 5-year senior secured revolving credit facility (“revolver”). The total CAPITAL facility amount of $550 mil
Slide 8: Strategy
STRATEGY AMG’s strategy is to build its critical materials business through industry consolidation, process innovation and product development EXPANSION OF EXISTING PROCESS INNOVATION & INDUSTRY HIGH-GROWTH BUSINESSES PRODUCT DEVELOPMENT CONSOLIDATION Pursue opportunities in Continue to focus on pro
Slide 9: Critical Raw Materials: AMG Presence
CRITICAL RAW MATERIALS: AMG PRESENCE US Critical Materials EU Critical Materials Rhodium Bismuth PGMs AMG has a Zirconium Bauxite unique critical Beryllium Nickel Niobium materials portfolio Fluorspar Scandium Ruthenium comprised of Antimony 9 EU critical Manganese Heavy REE Phosphorus Vanadium mate
Slide 10: AMG Global Footprint
AMG GLOBAL FOOTPRINT Rotherdam Cr U.K. New Castle East Windsor C Si Ti Cr Ti (PA), USA Eng (CT), USA HTS Limbach GERMANY U.K. GERMANY U.S.A. FRANCE Mo V Ni CHINA C Port Huron HTS (MI), USA Sb Suzhou CHINA Grenoble Eng HTS Eng FRANCE SRI Mexico City LANKA HTS MEXICO MOZAMBIQUE BRAZIL C Li Ta Nb LITHI
Slide 11: Health and Safety
HEALTH AND SAFETY LOST TIME INCIDENT RATE TOTAL INCIDENT RATE 2013 1.95 3.30 2014 1.19 2.23 2015 1.12 2.02 2016 1.06 1.68 2017 0.82 1.31 2018 0.63 1.26 2019 0.80 1.46 2020 0.62 1.05 2021 0.39 1.08 2022 0.46 0.95 2023 (YTD) 0.52 1.00 YTD Sept 2023 results demonstrate a 13% increase in lost time rate
Slide 12: AMG Lithium
AMG LITHIUM Lithium Hydroxide Battery-Grade Refinery – Bitterfeld, Germany 12
Slide 13: AMG Lithium
AMG LITHIUM • Mine in Brazil, from 90 ktpy to 130 ktpy • Experienced Lithium team AMG Lithium Ground • Commissioning first European 20 ktpy Battery Grade Lithium Hydroxide Base (LiOH BG) refinery in Germany • Further investments in Lithium Modules in Europe, up to 100 ktpy • State-of-the-art Lithium
Slide 14: AMG Lithium Has a Significant First Mover Advantage in Europe
AMG LITHIUM HAS A SIGNIFICANT FIRST MOVER ADVANTAGE IN EUROPE Upstream – Brazil Downstream – Germany Technical Technical Battery Solid Mibra Mine Spodumene Grade Li Grade Li Grade Li Electrolytes Carbonate Hydroxide Hydroxide & Precursors Lithium Expansion Under basic Under pre-basic First European
Slide 15: The Mibra Mine, Brazil
THE MIBRA MINE, BRAZIL 15
Slide 16: AMG Is a Low-Cost Spodumene Producer
AMG IS A LOW-COST SPODUMENE PRODUCER $468/mt YTD September 2023 cost per ton delivered to China, net of tantalum, feldspar and tin by-product credits • 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 pr
Slide 17: Spodumene Expansion (SP1+)
SPODUMENE EXPANSION (SP1+) • 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 • The three-week shutdown of the lithiu
Slide 18: Technical Grade Lithium Chemical Plant
TECHNICAL GRADE LITHIUM CHEMICAL PLANT Preliminary Estimates • Investment: $300M • Commissioning: End of 2026 • Capacity: 16.5k mt Technical Grade Lithium Carbonate per annum • Delivered cost to Germany less than $10,000 /mt; assuming spodumene at cost for conversion in Brazil • TG Lithium Carbonate
Slide 19: AMG Brazil's Mibra Mine Is a Leader in Sustainability Practices
AMG BRAZIL’S MIBRA MINE IS A LEADER IN SUSTAINABILITY PRACTICES Lost Time Rate and Recordable Rate Across all Brazil sites, Lost Time Rate of 0.00* and Recordable Rate of 0.17* compare favorably to Bureau of Labor Statistics Industry Benchmarks Contribution to a Sustainable Word In 2021, AMG Brazil
Slide 20: Showcasing AMG Brazil's Local Community
SHOWCASING AMG BRAZIL’S LOCAL COMMUNITY Local culture, building a relationship of trust and mutual respect, and hiring locally are AMG priorities • More than 70% of employees in Brazil operations are local hires • The Young Apprentice Program, a partnership with SENAI, Nacional Service of Industrial
Slide 21: Lithium Hydroxide Battery-Grade Refinery, Bitterfeld, Germany
LITHIUM HYDROXIDE BATTERY-GRADE REFINERY BITTERFELD, GERMANY 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 Commissioni
Slide 22: Module 1: Lithium Hydroxide Offtake
MODULE 1: LITHIUM HYDROXIDE OFFTAKE Existing offtakes at runrate 2025 20,000 • AMG has signed a binding supply 2,000 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 23: 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 24: Big Investments on New Supply Is Required to Meet Demand
BIG INVESTMENTS ON NEW SUPPLY IS REQUIRED TO MEET DEMAND • There is no significant oversupply to be expected in this decade, especially not in the next five years. The surpluses and deficits are marginal and should not lead to low prices automatically. • In 2023 the supply increase was driven by bro
Slide 25: LiOH Cost and Price Analysis
LIOH COST AND PRICE ANALYSIS New LiOH Converter: Price Model to LiOH BG 35 30 25 LiOH Eq. USD/kg 20 15 10 5 - Existing Brine (LC New Brine (LC Existing Spodumene (LC New Spodumene to New Spodumene (LC New Lep. (Non- Integrated) Integrated) Integrated) China Integrated) Integrated) Operational Cost M
Slide 26: 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)* Total EV Demand 800,000 761,000 600,000 >400,000 MT annual shortfall 400,000 200,000 Recycling Existing & Announced EU Li Projects 0 Demand Supply Source: AMG Lithium internal Q4 2023 and L
Slide 27: Announced Cathode Active Materials Production and Projects Sites in Europe
ANNOUNCED CATHODE ACTIVE MATERIALS PRODUCTION AND PROJECTS SITES IN EUROPE Cathode Active Materials LCE Demand ('000) mt in EU 500 450 400 350 300 250 200 150 100 50 0 2023 2024 2025 2026 2027 2028 2029 2030 Source: AMG internal information, public press releases and feedback from CAM producers and
Slide 28: Game Changer: AMG Multi-Plant Concept
GAME CHANGER: AMG MULTI-PLANT CONCEPT AMG’S MULTI-PLANT CONCEPT 28
Slide 29: AMG Lithium Downstream Growth Strategy
AMG LITHIUM DOWNSTREAM GROWTH STRATEGY Lithium hydroxide / carbonate Lithium hydroxide Lithium hydroxide Technical Grade Feed Battery Grade Production Battery Grade Consumers Diversified sources Modular plant concept Targeting customers producing in for up to 100,000 tpa of LiOH Europe AMG module 1
Slide 30: AMG's Resource Development Strategy
AMG’S RESOURCE DEVELOPMENT STRATEGY AMG Resource Development as a Strategic Partner Exploration, Mining and Spodumene Concentrate know-how AMG is engaging in resource projects to Engineering / Project Management grow the Lithium story in Germany Long-Term Offtake contracts (with or without KfW) AMG
Slide 31: Lagoa: AMG Brazil Signs MOU for Development of Lithium Concentrate Production
LAGOA: AMG BRAZIL SIGNS MOU FOR DEVELOPMENT OF LITHIUM CONCENTRATE PRODUCTION • Located in Northern Portugal, next to the Savannah Lithium Project • AMG signed an MoU with Grupo Lagoa to concentrate lithium minerals Lagoa to Spodumene Concentrate • Location: Portugal. • The partnership intends to co
Slide 32: Zinnwald Lithium: AMG's 25% Shareholding
ZINNWALD LITHIUM: AMG’S 25% SHAREHOLDING • In March 2023, AMG became a 25% shareholder of Zinnwald and is supporting the Zinnwald Board to accelerate the development of its Zinnwald lithium project in Eastern Germany • Location: Germany. • Production: • Zinnwald’s integrated operation planned to pro
Slide 33: AMG's Supply Chain Routes & CO2 Footprint
AMG’S SUPPLY CHAIN ROUTES & CO2 FOOTPRINT Transitionary: Tolling in China Transport Conversion Transport Refining to Spodumene BR to CN to LiOH TG CN to DE LiOH BG Brazil China Germany ➢ AMG’s global warming potential: 16.3 tons CO2 per ton of LiOH BG Source: Life Cycle Assessment of AMG finished in
Slide 34: AMG Lithium Forward Integration in the Value Chain
AMG LITHIUM FORWARD INTEGRATION IN THE VALUE CHAIN Cathode Active Material Lithium Lithium Solid All-Solid-State Automotive Hydroxide Sulfide Electrolyte Batteries OEMs Production site Forward integration in Bitterfeld Anode Active Material 34
Slide 35: Next Generation Automotive Battery Technology: All-Solid-State Batteries
NEXT GENERATION AUTOMOTIVE BATTERY TECHNOLOGY: ALL-SOLID-STATE BATTERIES (ASSB) Current collector Application & Market: Solid electrolytes • All-Solid-State batteries (ASSB) are Anode next step in automotive battery technology Separator • Energy density of ASSBs significantly increased compared to s
Slide 36: All-Solid-State Batteries: Market Penetration and Solid Electrolyte Market
NEXT GENERATION AUTOMOTIVE BATTERY TECHNOLOGY: ALL-SOLID-STATE BATTERIES (ASSB) Sources: SolidPower (2023); Avicenne (2021); Roland Berger (2022); HSBC (2021) Automotive battery demand Solid electrolyte market 6,000 250,000 14% Conservative Case Conservative Solid electrolyte market [MT] 5,000 12% B
Slide 37: Value Creation: From Mine to Battery Components
VALUE CREATION: FROM MINE TO BATTERY COMPONENTS FORWARD INTEGRATION Lithium Raw Material Lithium Hydroxide Lithium Sulfide Solid Electrolyte Battery Cell AMG-owned Lithium Lithium Hydroxide Process Component Target customers: resource in Brazil: “Battery Grade” development and development
Slide 38: Global Customer Activities
GLOBAL CUSTOMER ACTIVITIES Current Status: Projects with customers in: • Europe (3x): development projects & evaluation • USA (1x): qualification • Japan (4x): qualification & evaluation projects • Korea (3x): sampling / evaluation Our position: • AMG Lithium is technology enabler • Position as deve
Slide 39: All-Solid-State Battery Activities – A Global Leader
ALL-SOLID-STATE BATTERY ACTIVITIES – A GLOBAL LEADER Advanced Technology & Processing: • High performance materials with a broad variety of modifications • Flexible process technology to accommodate customized solutions Decades of experience of the technical and commercial teams: • Team members with
Slide 40: Appendix
APPENDIX LiVa Power Management Systems GmbH – Frankfurt, Germany 40
Slide 41: AMG Spodumene Contract Price Is Directly Tied to Spot Price
AMG SPODUMENE CONTRACT PRICE IS DIRECTLY TIED TO SPOT PRICE FOR LITHIUM CARBONATE AND HYDROXIDE AMG Spodumene Contract Components Component Average Index Spot Price1: I (Lithium Carbonate + Lithium Hydroxide) / 2 Component Total Cost = II Minimum Spodumene Price + Conversion Cost AMG Spodumene Price
Slide 42: 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 42
Slide 43: Everything that can be recycled will be recycled
LIVA BATTERY LITHIUM HYDROXIDE – BITTERFELD, GERMANY LITHIUM LAB This announcement appears as a matter of record. ENGINEERING – HANAU, GERMANY AMG’s LAW: “Everything that can be recycled will be recycled.” MELTSHOP – ZANESVILLE, OHIO AMG Critical Materials N.V. amg-nv.com VANADIUM, MOLYBDENUM AND NI