Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Cormark conference keynote 2017
36 slides from Lithium Americas's conference presentation, Jan 25, 2017
Slide 1: The rise and fall of lithium: +60 million tons of opportunity
The rise and fall of lithium: +60 million tons of opportunity 2017-01-25 Dr. David Deak Lithium Americas Corp The views, estimates, and opinions expressed in this presentation are those of the author and do not necessarily reflect the position of Lithium Americas Corp.
Slide 2: Opening remarks and thanks to Cormark
I would like to thank Cormark for the opportunity to speak with you today. It is a pleasure and an honor to be invited to deliver today’s keynote speech, especially in Toronto, where I was born and did my undergraduate degree. Why are we here, in this venue together? You may think it is to discuss l
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Slide 4: Hiking in Chile and glacier loss
Here is where I went hiking last month in Chile with my wife and baby daughter. It’s a beautiful part of the world. Up in the corner you’ll see snow. If you look closely enough, it is possible to make out a glacier. While out there, at 2000 m altitude, I made the comment to my wife: “If our daughter
Slide 5: Climate change is accelerating
Worldwide, we are seeing such changes happening before our very eyes; and these changes are accelerating. Climate change is happening. The cause of it, raising levels of GHGs, is obvious and clear. 5
Slide 6: Global temperature graph
This graph was pulled from a New York Times article last week, and compiled from data from different agencies and scientific outfits across the world. The picture speaks for itself. The consequences, of course, are difficult to predict and simulate locally, but not impossible. 6
Slide 7: Prosperity fueled by carbon-intensive base-load
Yet, global prosperity and growth has been fueled on a carbon-intensive base-load. Much of our progress in the industrial and post-industrial age is thanks to the abundance of and easy access to fossil fuels. The growth on these graphs closely align with prosperity. Moving forward, however, it may n
Slide 8: Share of energy consumption in the United States (1776-2014)
Share of energy consumption inthe United States (1776-2014) 100% other renewables hydroelectric nuclear 80% natural gas 60% 40% petroleum 20% 0% _ 1776 1850 1900 1950 2014 <r)
Slide 9: Keeping the lights on without fossil fuels
We need to figure out how to keep the lights on. Or indeed, enable parts of the world that are in energy poverty, to turn the lights on. I think there is a way to do it, without the need for carbon-intense sources and technology. Many solutions already exist, and are economical today. We can turn li
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Slide 11: Lithium is central to mobile energy storage
Our way forward, as we already move toward renewables and EV, will largely depend on our ability to deliver lithium to the world. Lithium is central to any mobile energy storage technology. We have what’s available to us on the periodic table. It’s impossible to avoid the lightness and electrochemic
Slide 12: Periodic table
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Slide 13: Electric cars and the point of no return
How many of you have driven in an electric car? How many of you own an electric car? How many of you have driven in a Tesla? Or, better, have had a Tesla drive you, or watch it park itself? For those who have not experienced driving in an electric car, you’re missing out. The experience is extraordi
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Slide 15: Lithium market today and where it is going
Right now, lithium is characterized as a specialty chemical. Last year, sales reached over $1B, with 35 to 45% of the market going to Li batteries. The lithium market is tiny compared to say, nickel or copper. Let’s take a closer look at the market numbers and provide some context. In 2016, around 1
Slide 16: Tesla Model 3 pre-orders and VW EV plans
After the unveiling of Tesla’s Model 3, almost 400,000 pre-orders came in last April, requiring a $1000 refundable deposit by customers. That’s unprecedented. iPhone sales have never performed that well. Soon after, the CEO of Tesla, Elon Musk decided to double the production goals of its Gigafactor
Slide 17: Lithium Industry 2016 order of magnitude
Lithium Industry 2016 Order of magnitude Sales Over $1B Volume 160k to 180k tpa LCE # of Gigafactory equivalents 3 to 4 * What’s a Gigafactory? A battery factory that can produce enough Li-ion batteries to produce about 1m EV’s per year. Original term coined by Tesla. 17
Slide 18: What does this mean for the Li industry?
What does this mean for the Li industry? 1. Unprecedented growth 2. Rapid technological change 18
Slide 19: EVs and LCE per Gigafactory, USA and world
# of EVs t LCE Gigafactory (per year) 1,000,000 50,000 Gigafactory (total over 20 yr) 20,000,000 1,000,000 USA 250,000,000 12,500,000 World 1,250,000,000 62,500,000 * Almost 100 Gigafactories, operating for 20 years each, are needed to electrify the world’s fleet of vehicles, and enable segments of
Slide 20: Scale
SCALE Let’s focus on the growth aspect. We need to think big. The industry can no longer think in terms of incremental growth. We need to think in terms of Gigafactory quantities. Not in thousands of tons LCE, but 50ktpa growth quanta. One Gigafactory will enable the production of 1m EVs’ per year,
Slide 21: Mine over 3.1 million t LCE every year for 20 years
To electrify the world’s fleet of vehicles: mine over 3.1 million t LCE of lithium every year, for 20 years. almost x20 the size of today’s lithium market Annual production volume, kt LCE 3500 3000 2500 2000 1500 Total volume to mine: 1000 62.5 million tons LCE 500 Recycling 0 2016 2031 2044 21
Slide 22: The rise of lithium: multiply the market by 20
The rise of lithium thus means taking today’s market size and multiplying it by 20. This is going to require about 60 to 100 new lithium mines to be built, starting now, and operating for +20 years. We need to get started! So when I talk about the rise and fall of lithium – the title of this present
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Slide 24: Move the mining industry off fossil fuels
• Move the entire industry off fossil fuels. Period. Solar is cheap now, and a safer bet than any fossil fuel, including natural gas. Apple and Google are doing it, why can’t a mining industry do it? • We can provide an example for other sectors of the mining industry. o To become safer, cheaper, an
Slide 25: Lithium process plants should make LiOH directly
LiOH∙H2O Another change that needs to happen: Lithium process plants should make LiOH directly • Best battery chemistries – Ni heavy – require hydroxide. • Avoid the costly carbonate intermediate. • To suggest that is cannot be done, or that is it not economical today is defying first-principles phy
Slide 26: Brine processing: higher yields, less dependent on climate
Brine processing Higher Yields - Less Dependent on Climate Brine processes are going to need to get better at extraction yields. • Today’s 30-50% yields can and should be improved upon. I think there is a pathway toward +90% recovery rates from most lithium deposits. • Increasing yields also increas
Slide 27: Rock processing: better energy sourcing, simplified processing
Rock processing Better Energy Sourcing - Simplified Processing It’s no secret that hardrock deposits operate at higher cash costs than today’s brine projects. Yet, they are essential to the industry’s growth and will be profitable for the foreseeable future. Hardrocks are going to need to leverage c
Slide 28: Vertical integration
Vertical integration OEM Battery Chassis pack Cells ... Cathode Anode ... Li Ni Co ... C Si ... 28
Slide 29: Vertical integration of the EV and battery supply chain
Vertical integrations • At some point, parts of the EV and battery supply chain should vertically integrate. • Downstream cell factories could be built on top of mines, for example. • Cathode manufacturers can consolidate upstream processes and synergize on water, energy, and consumable commonalitie
Slide 30: Alternative sources: Brine, Hard rock, Clay
Alternative sources Brine Hard rock Clay 30
Slide 31: Clay deposits and technology changes ahead
Clay deposits are going to be unlocked, with low-cost low-footprint processes. • For example, LAC, the company I am now part of, is developing our clay based resource in Nevada, with promising new approaches to processing. These basic technological changes are possible, and should be done. Producers
Slide 32: How best to invest in lithium?
How best to invest in lithium? Scalable resource Collaborative Manageable talent risk INVESTMENT THESIS So, let’s get to the question I know you are all dying to address: how do you best invest in lithium? Which projects will provide the best returns at the lowest possible risk, as fast as possible?
Slide 33: Criteria: resource quality, size and low-risk execution
Well, here is the criteria: • You need a project with good resource quality and size o Think in Gigafactory increments: projects should strive for scaleable potential. For example, exploration projects should build the economics of a plant with scales that approach or exceed 50 ktpa LCE. With lifeti
Slide 34: Invest in the right teams
• Last, but not least, you need to invest in the right teams. The best teams show: o Leadership who believes in the mission of delivering lithium in the most sustainable way possible. The mission should not be intrinsically about profit: profit should be the result, not the goal. You need teams that
Slide 35: Take-away
Take-away • Electrification of transport is a reality • Lithium market size may grow by a factor of 20 • $700 to $1000 of capital is required per t LCE • Investable projects are • Scalable • Risk-manageable • Built on collaborative talent • Unprecedented investment opportunity 35
Slide 36: Thank you
Thank you 36