Lithium ion’s role in the Energy Storage Revolution: The impact on raw materials

PowerPoint Presentation Lithium ion’s role in the Energy Storage Revolution: The impact on raw materials Benchmark World Tour 2016 Washington DC, 21 October 2016 Simon Moores, Managing Director www.benchmarkminerals.com Electric Buses: Tianjin, China (Benchmark) What is Benchmark? Subscriptions Consultancy Events Price Forecasting Industry conferences Membership Investment seminars Supply/Demand A. [...] 41% China Expect majority of 2016-2020 gap to be filled by Australian spodumene… Lithium Demand: 100,000 to 120,000 tonnes by 2020 to keep balance • A surging battery industry • Long term orders in China through the roof • Major lithium ion producers preparing for a 4-6 fold increase in cathode buying by 2020 • Tesla will need to source lithium hydroxide from China initially Do not expect any new. [...] DRC • Price have begun to rise 10% • Caught between a commodity (LME traded) and its true position as a niche mineral • Some speculators began stockpiling in June • Arguably makes it the most critical of critical minerals... [...] • Availability and sustainability thrown into question in Cobalt raw material supply in 2015 recent months – not for the first time… Russia • By-product production makes supply even more 5% unresponsive • Geographical occurence makes supply chain transparency challenging Cuba DRC 6% 59% Australia 5% Canada 9% Cobalt: Structural Problem 2. [...] By-product Nickel Copper Source: Benchmark Mineral Intelligence Source: LME Price curve previously a result of DRC LME Cobalt Metal Price does not reflect the 60 (US$/lb) chemical/battery market Cobalt deficit, DRC instability 50 40 Low Prices = lack of interest / Exploration 30 Cobalt suprlus, China destocking 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cobalt’s CSR p.