Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (May 2022)
19 slides from Amg Critical Materials's investor presentation, May 2022
Slide 1: Accelerating the Energy Transition
ACCELERATING THE ENERGY TRANSITION Equity Capital Market Presentation | May 2022 AMG ADVANCED METALLURGICAL GROUP N.V. 1
Slide 2: Cautionary Note
CAUTIONARY NOTE This document contains proprietary information and is being provided solely for information purposes by AMG Advanced Metallurgical Group 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 pu
Slide 3: AMG's Lithium Value Chain
AMG’S LITHIUM VALUE CHAIN From mining through to next generation lithium products Upstream - Brazil Downstream - Germany Supplemented: Technical Battery Solid Mibra Mine Spodumene Grade Li Grade Li Electrolytes Precursor Hydroxide AMG Exploration Spodumene Expansion Under basic Construction of Curre
Slide 4: Modular Expansion Plans to Meet Growing Demand
MODULAR EXPANSION PLANS TO MEET GROWING DEMAND 2022 -2023 2024 2025 - 2026 2027 - 2028 Battery Grade Li Hydroxide Battery Grade Li Hydroxide Module 2 Module 4 Battery Grade Li Hydroxide Battery Grade Li Hydroxide BG Lithium Module 3 Module 5 Hydroxide Module 1 20k tons Solid Electrolyte Commercial D
Slide 5: Lithium Concentrate Expansion Overview (Spodumene 1+)
LITHIUM CONCENTRATE EXPANSION OVERVIEW (SPODUMENE 1+) Spodumene Plant Expansion ◼ Capacity increase from 90 ktpa to 130 ktpa ◼ Absence of technical risk ◼ Expected operational improvements Execution Timeline March 2021 May 2022 Test work & Front- Construction Q2 2023 end Loading Commissioning (“FEL”
Slide 6: Overview of Lithium Upgrading Facility in Germany
OVERVIEW OF LITHIUM UPGRADING FACILITY IN GERMANY ◼ Production of highly-refined, battery-grade Lithium hydroxide ◼ Located in Bitterfeld/Germany in an industrial chemical park ◼ Module 1 with 20,000 MT capacity, further modules up to 100,000 MT ◼ Expected capex of $120 million for module 1, $75 mil
Slide 7: AMG Spodumene Contract Price Tied to Spot Price for Lithium Carbonate and Hydroxide
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 8: Lithium Carbonate & Hydroxide Pricing
LITHIUM CARBONATE & HYDROXIDE PRICING ASIAN METAL $85,000 $4,000 BG Carb Q1 avg. $3,500 price: $66,499 $68,000 $3,000 LiOH & Li Carb pricing ($ / mt) Spodumene pricing ($ /mt) Spod Q1 avg. price: $2,716 $2,500 $51,000 Spod Q4 avg. $2,000 price: $1,922 $34,000 BG Carb Q4 avg. $1,500 price: $32,577 $1
Slide 9: IEA Estimates EV Demand Will Require 40X More Lithium by 2040
THE IEA ESTIMATES ELECTRIC VEHICLE DEMAND WILL REQUIRE 12 – 40X MORE LITHIUM BY 2040 Annual electric car sales EV Demand based on in the SDS Paris Agreement 80 45 70 40 60 35 50 30 (millions) 40 25 30 20 20 15 10 10 0 5 2020 2030 2040 Demand in 2020 = 1 0 China India Cobalt Lithium Graphite Nickel U
Slide 10: Announced OEM Production Targets Show 17% Electric Vehicle Growth Through 2030
ANNOUNCED OEM PRODUCTION TARGETS SHOW 17% ELECTRIC VEHICLE GROWTH THROUGH 2030 140,000 Global Passenger Cars Produced 50% 45% 120,000 40% 100,000 35% 30% 80,000 Cars (‘000s) 25% % EV’s 60,000 20% 40,000 15% 10% 20,000 5% 0 0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ICE EV % EV's Source: Wo
Slide 11: Lithium Chemical Demand Expected to Triple by 2030
LITHIUM CHEMICAL DEMAND IS EXPECTED TO TRIPLE BY 2030, DRIVEN BY ELECTRICAL VEHICLE DEMAND 2,000,000 Total Lithium Chemical Demand by End Use 1,800,000 1,600,000 1,400,000 1,200,000 CAGR: 15.6% t LCE 1,000,000 Limited growth 800,000 included for lithium batteries 600,000 used in the electrical grid
Slide 12: Battery Grade Lithium Hydroxide Is the Fastest Growing Lithium Chemical Product
BATTERY GRADE LITHIUM HYDROXIDE (LIOH) IS THE FASTEST GROWING LITHIUM CHEMICAL PRODUCT 2,000,000 Total Lithium Chemical Demand by Product 1,800,000 1,600,000 BG LiOH growth driven by demand for higher BG LiOH 1,400,000 performance, higher CAGR: nickel content batteries 23.9% 1,200,000 T LCE 1,000,00
Slide 13: Total Lithium Chemical Supply Expected to Triple by 2030
TOTAL LITHIUM CHEMICAL SUPPLY — EXPECTED TO TRIPLE BY 2030 Base Case Total Lithium Supply by Source 1,800 1,600 Growth is dependent on 1,400 new and highly 1,200 probable mines and significant 1,000 recycling kt LCE expansions 800 600 400 200 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Opera
Slide 14: Total Lithium Chemical Supply – Continued Dominance by China
TOTAL LITHIUM CHEMICAL SUPPLY – CONTINUED DOMINANCE BY CHINA 2022 2030 Recyling Recyling Other Australia US Other Argentina China China Australia Chile US Argentina Chile Total Production: Total Production: 678kt LCE 1,620kt LCE Source: Wood Mackenzie’s Global lithium strategic planning outlook - Q1
Slide 15: Lithium Chemical Market Long in 2025, Significantly Short in 2030
TOTAL LITHIUM CHEMICAL MARKET EXPECTED TO BE LONG IN 2025, AND SIGNIFICANTLY SHORT IN 2030 Total Lithium Chemical Supply / Demand Balance 2,000 25% 1,600 20% 1,200 15% 800 10% Long / Short 400 5% T LCE 0 0% (400) -5% (800) -10% (1,200) -15% (1,600) -20% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2
Slide 16: Battery-Grade Lithium Chemical Market Expected to Remain Largely Balanced
… BUT THE BATTERY-GRADE LITHIUM CHEMICAL MARKET IS EXPECTED TO REMAIN LARGELY BALANCED Battery-grade Lithium Supply / Demand Balance 1,800 30% 1,350 20% 900 10% 450 Long / Short T LCE 0 0% (450) -10% AMG Spodumene (900) pricing based on battery grade price -20% (1,350) (1,800) -30% 2020 2021 2022 20
Slide 17: EBITDA Guidance for 2022 & Medium Term
EBITDA GUIDANCE FOR 2022 & MEDIUM TERM $500+ AMG’s Medium Term $260- $290 Guidance is driven by capital investment and volume growth 17
Slide 18: Appendix
APPENDIX a SS
Slide 19: Lithium Supply Chain
LITHIUM SUPPLY CHAIN Source: International Energy Agency’s “The Role of Critical World Energy Outlook Special Report Minerals in Clean Energy 19 Transitions,” March 2022 revised version.
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