Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — Investor Presentation (September 2023)
36 slides from Amg Critical Materials's investor presentation, September 2023
Slide 1: Critical Materials for a Sustainable Planet
CRITICAL MATERIALS FOR A SUSTAINABLE PLANET ING Benelux Presentation | September 2023 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 at a Glance
AMG AT A GLANCE FY 2022 REVENUE 28% Transportation 34% Europe 41% Clean Energy BY Materials 21% Specialty Metals BY END BY 28% North America SEGMENT & Chemicals MARKET REGION 22% Critical Minerals 22% Infrastructure 32% Asia 37% Critical Materials 29% Energy Technologies 6% ROW AMG IS A GLOBAL SUPPL
Slide 5: AMG Business Segments
AMG BUSINESS SEGMENTS AMG CRITICAL MATERIALS AMG CLEAN ENERGY MATERIALS AMG CRITICAL MINERALS TECHNOLOGIES LTM EBITDA*: $366M LTM EBITDA*: $25M LTM EBITDA*: $41M AMG’s mining and recycling AMG’s conversion and mining AMG’s titanium, vacuum systems business business and services business • Vanadium •
Slide 6: 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) 0.54 1.03 • 2023 year-to-date results demonstrate a 17% increase in lost time
Slide 7: Increased Scale and a Strong Project Pipeline
INCREASED SCALE AND A STRONG PROJECT PIPELINE EBITDA (IN MILLIONS OF US DOLLARS) $432.2 Other Clean Energy Materials (CEM) $118.1 $102.6 $104.1 $107.5 $81.1 $366.1 $54.8 $83.7 $80.3 $106.1 $43.9 $96.0 $58.2 $31.4 $33.1 $25.8 $37.2 $12.6 $18.0 $18.8 $15.0 $18.1 $17.5 $22.9 $18.9 $23.7 $66.1 $12.0 $11
Slide 8: AMG Lithium
AMG LITHIUM Lithium Hydroxide Battery-Grade Refinery – Bitterfeld, Germany 8
Slide 9: 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 Battery Solid Mibra Mine Spodumene Grade Li Grade Li Electrolytes Carbonate Hydroxide Lithium Expansion Under basic First European Current Lab- concentrate underway engineering battery-grad
Slide 10: The Mibra Mine, Brazil
THE MIBRA MINE, BRAZIL 10
Slide 11: 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 11
Slide 12: AMG Is a Low-Cost Spodumene Producer
AMG IS A LOW-COST SPODUMENE PRODUCER • 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 production is the key reason for $434/mt YTD June the mine’s low-cost spodumene position 2023 cost per ton • Mibra’
Slide 13: Technical Grade Lithium Chemical Plant
TECHNICAL GRADE LITHIUM CHEMICAL PLANT Preliminary Estimates: • Investment: $250M • Commissioning: End of 2025 • Capacity: 16.5k mt Technical Grade Lithium per annum • Delivered cost to Germany less than $10,000 /mt; assuming spodumene at cost for conversion in Brazil • TG Carbonate from Brazil vs U
Slide 14: Local Community
LOCAL COMMUNITY • The company prioritizes local culture and building a relationship of trust and mutual respect and prioritizes hiring locally. ➢ More than 70% of employees are local hires ➢ The Young Apprentice Program, a partnership with SENAI, Nacional Service of Industrial Learning, is an intern
Slide 15: 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 • Star
Slide 16: Module 1: Lithium Supply Chain
MODULE 1: LITHIUM SUPPLY CHAIN Mibra Mine (Spodumene) Spodumene to Carbonate Brazil China Tolling Start-up 2026 (until 2026) Carbonate to Hydroxide Germany Lithium Hydroxide BG Module 1 Cathode Producers 16
Slide 17: Lithium Feedstock Sources Module
LITHIUM FEEDSTOCK SOURCES MODULE 1 25 LiOH Feedstock in ‘000 mT 20 15 10 5 0 2023 2024 2025 AMG Brazil Purchase of LiOH TG / Li2CO3 Strategic Offtake Partners • AMG Brazil: only volumes not covered by Spodumene contracts • LiOH BG qualification during 1st half of 2024 17
Slide 18: 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 19: 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 20: Chinese and Global EV Sales Remain Strong
CHINESE AND GLOBAL EV SALES REMAIN STRONG New Electric Vehicle (NEV) Monthly Sales China* 100 2020 2021 2022 2023 80 NEV (10,000) 60 40 20 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Global Electric Vehicle Annual Production 1,600 1,410 80 1,200 1,065 YoY: 84% Units (10K) 850 800 650 YoY: 25%
Slide 21: 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)* 600,000 600,000 >300,000 MT annual 400,000 shortfall Recycling 200,000 Existing & Announced EU Li Projects 0 Demand Supply 2025: already announced European demand of ~300 ktpa of lithium ca
Slide 22: Why LiOH? Growing Demand for Lithium Hydroxide BG
WHY LIOH? GROWING DEMAND FOR LITHIUM HYDROXIDE BG DRIVEN BY HIGH NICKEL BATTERY CATHODES Lithium Demand in Rechargeable EV Demand for Lithium Batteries by Type Source: Lithium-Forecast-Benchmark-Mineral-Intelligence Q4-2022. Note: High Nickel includes NCM712, NCM811, NMX, NCA, NCMA, LNMO and other n
Slide 23: Current Supply / Demand Outlook Shows Lithium Market Balanced to Short Through 2030
CURRENT SUPPLY / DEMAND OUTLOOK SHOWS LITHIUM MARKET BALANCED TO SHORT THROUGH 2030 3,500 3,091 3,000 2,804 2,480 2,500 2,162 '000 Mt LCE 2,000 1,869 1,571 1,500 1,265 2,528 2,394 989 2,266 1,000 2,084 1,873 1,584 1,268 500 981 - 2023 2024 2025 2026 2027 2028 2029 2030 Benchmark Forecast Supply Benc
Slide 24: Game Changer: The AMG Supply Chain Concept
GAME CHANGER: THE AMG SUPPLY CHAIN CONCEPT 24
Slide 25: Developing Additional (Affiliated) Resources
DEVELOPING ADDITIONAL (AFFILIATED) RESOURCES AMG Resource Development Support Spodumene production know how Engineering / Project Management Offtake contracts (with or without KfW) Project Financing / Equity Equity participation Announced Projects Lagoa Zinnwald 25
Slide 26: AMG's 25% Shareholding in Zinnwald Lithium
AMG’S 25% SHAREHOLDING IN ZINNWALD LITHIUM • Upon admission of the newly issued ordinary shares in March 2023, AMG became a 25% shareholder of Zinnwald and is supporting the Zinnwald Board to accelerate the development of its lithium project in Eastern Germany. • Zinnwald’s integrated operation plan
Slide 27: AMG Brazil Signs MOU for Development of Lithium Concentrate Production
AMG BRAZIL SIGNS MOU FOR DEVELOPMENT OF LITHIUM CONCENTRATE PRODUCTION • AMG Brazil signed an exclusive MOU in August with Grupo Lagoa, which has operated a pegmatite mine supplying the Portuguese ceramic and glass industry since 1984. The partnership intends to concentrate the lithium minerals cont
Slide 28: Next Generation Automotive Battery Technology: All-Solid-State-Batteries
NEXT GENERATION AUTOMOTIVE BATTERY TECHNOLOGY: ALL-SOLID-STATE-BATTERIES (ASSB) 5,000 Forecast Solid Electrolyte Solid electrolyte market [MT] 90,000 7% 4,000 automotive [GWh] 80,000 Battery demand / 6% Market penetration 70,000 5% 3,000 60,000 50,000 4% 2,000 40,000 3% 30,000 2% 1,000 20,000 10,000
Slide 29: AMG Lithium Solid State Battery Material Customer Activity
AMG LITHIUM SOLID STATE BATTERY MATERIAL CUSTOMER ACTIVITY Current status: Projects with customers in: ▪ Europe (3x): development 1x 3x 2x projects & evaluation ▪ USA (1x): qualification 4x ▪ Japan (4x): qualification & evaluation projects ▪ Korea (2x): sampling & evaluation ▪ Addressable AMG custom
Slide 30: Appendix
APPENDIX LiVa Power Management Systems GmbH – Frankfurt, Germany 30
Slide 31: Clean Energy Materials – Market Trends
CLEAN ENERGY MATERIALS – MARKET TRENDS CRITICAL MINERALS MAJOR END MARKETS MARKET TRENDS MAJOR CUSTOMERS AMG VANADIUM INFRASTRUCTURE GROWTH FERROVANADIUM INFRASTRUCTURE FERRONICKEL- VANADIUM REDOX FLOW MOLYBDENUM BATTERIES COMMUNICATIONS & AMG BRAZIL MICRO CAPACITORS, ELECTRONICS TANTALUM & NIOBIUM
Slide 32: Critical Minerals – Market Trends
CRITICAL MINERALS – MARKET TRENDS CRITICAL MINERALS MAJOR END MARKETS MARKET TRENDS MAJOR CUSTOMERS AMG GRAPHITE EXPANDED POLYSTYRENE ENERGY SAVING NATURAL GRAPHITE (EPS),BATTERY ANODES ENERGY STORAGE AMG ANTIMONY ANTIMONY TRIOXIDE FLAME RETARDANTS PLASTICS ANTIMONY MASTERBATCHES ANTIMONY PASTES AMG
Slide 33: Critical Materials Technologies – Market Trends
CRITICAL MATERIALS TECHNOLOGIES – MARKET TRENDS CRITICAL MINERALS MAJOR END MARKETS MARKET TRENDS MAJOR CUSTOMERS AMG TITANIUM FUEL EFFICIENCY AEROSPACE TITANIUM ALLOYS ENERGY SAVING AMG ENGINEERING AEROSPACE, FUEL EFFICIENCY CAPITAL GOODS AUTOMOTIVE ELECTRONICS (VACUUM FURNACES) AMG ENGINEERING AER
Slide 34: 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 35: 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 35
Slide 36: AMG Critical Materials N.V. – amg-nv.com
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
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