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SQM Lithium OverSupply Scare 2.0

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Now let's start the serious conversation about The Security of Lithium Supply. It looks like the first mantra is learnt by now: The Price Of Lithium Is The Second Thought After You Have Got Some Secure Supply. Now let's start thinking about the real challenge: The Price For Lithium And Its Amount Somewhere Are Not Important If You Can't Get It. I will leave this stimulating process for all of you who is really interested.

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SQM Lithium OverSupply Scare 2.0

  1. 1. SQM Lithium OverSupply Scare 2.0
  2. 2. SQM 2010: “We can supply Lithium for 1000 years.” SQM 2018: “Maybe we can produce 216,000 T Lithium LCE in 2025.” Kirill Klip International Lithium 2018 www.internationallithium.com 2
  3. 3. SQM Lithium Oversupply Scare 2.0 •  “UBS analyst Lachlan Shaw says SQM deal will not affect lithium supply for at least 4 or 5 years given the time required to build the expansions. When SQM’s expansion eventually does hit, Mr. Shaw says demand should be surging sufficiently to ensure a shortage of lithium.” The Australian Financial Review. Kirill Klip International Lithium 2018 www.internationallithium.com 3
  4. 4. UBS Lithium Demand Forecast Over 1,000,000 T LCE/Y 2026 “SQM would be able to produce up to 216,000 T Lithium LCE a year through 2025.” Reuters. Kirill Klip International Lithium 2018 www.internationallithium.com 4
  5. 5. Dr. David Deak Former SDE of Tesla Motors Inc. To Electrify The World’s Fleet of Vehicles By 2050 Lithium Production Needs To Average 3.1 Million T LCE for 20 Years. Kirill Klip International Lithium 2018 www.internationallithium.com 5
  6. 6. Summer 2017 My “Totally Outrages” Forecast 36 M T LCE Needed by 2040 For 600 M EVs. 100 M T Lithium LCE Needed by 2050 if Elon Musk and Warren Buffet Are Right About Electric Cars. Kirill Klip International Lithium 2018 www.internationallithium.com 6
  7. 7. 100 M T Lithium LCE Needed by 2050. Only for All New Cars Being Electric The Economist: 1.8 B Electric Cars by 2040 Kirill Klip International Lithium 2018 www.internationallithium.com 7
  8. 8. Energy Storage Systems Solar & Wind. Energy Storage Systems Will Consume More Lithium Batteries’ Capacity Than Electric Cars in the Future. Kirill Klip International Lithium 2018 www.internationallithium.com 8
  9. 9. Security of Lithium Supply. •  We are Here now: The Price of Lithium is the second thought after you have got some Secure Supply. •  The Future: The Price of Lithium and its Amount Somewhere are not important if You Can’t Get It. •  Scene One: China is diverting Supply of Lithium Chemicals for Batteries to Their Own Producers. •  Scene Two: Australia, Chile, Argentina, Canada and Others Prohibit The Export of Any Battery Grade Chemicals other than In Lithium Batteries. •  I will leave this stimulating process of thinking to all interested parties. Kirill Klip International Lithium 2018 www.internationallithium.com 9
  10. 10. The Real Lithium Scare. You Can’t Get It. Kirill Klip International Lithium 2018 www.internationallithium.com 10
  11. 11. Disruption of $12 T Industries: Energy and Transportation. •  Disruption of $12 Trillion Industries: $8 T Energy & $4 T Transportation is based on $3 B Lithium Market by sales in 2017. •  Money flow in Security of Lithium Supply will expand this market by price first and by volume after it. •  Investments are lacking the Big Picture – Price Shocks Are Imminent. •  M&A will redistribute the existing production first (SQM) and near-future supply development second (Lithium X). •  Tesla Energy rEVolution – All Known Reserves of Lithium will be produced. Kirill Klip International Lithium 2018 www.internationallithium.com 11
  12. 12. The End of The ICE Age & OIL Domination. For centuries we have been burning things just to get some energy. It has been mostly OIL for the last 100 years. Not Any More. We do not have to burn things. Electricity is the most efficient form of Energy known to humans. And now we can Store It and USE IT When We Want. Cheap Lithium Batteries Change Everything. Kirill Klip International Lithium 2018 www.internationallithium.com 12
  13. 13. Tesla Energy rEVolution. All Known Reserves Are Not Enough. New Technologies: NOT Only EVs - Lithium Exploration & Development. Kirill Klip International Lithium 2018 www.internationallithium.com 13
  14. 14. New Geo Political Strategy: Focus – Access to Lithium. Lithium Gigafactories Will Come Where The Lithium Supply Is Located – Lithium Batteries Will Be A Commodity. Kirill Klip International Lithium 2018 www.internationallithium.com 14
  15. 15. Entry Into Vertically Integrated Lithium Business With Ganfeng. International Lithium provides an entry point into Vertically Integrated Lithium Business with Ganfeng Lithium. Kirill Klip International Lithium 2018 www.internationallithium.com 15
  16. 16. The End of The ICE Age & OIL New Players Are At The Table. Who will control the future of Tesla Energy rEVolution? The Lithium Race Is ON. Kirill Klip International Lithium 2018 www.internationallithium.com 16
  17. 17. Thank you! Energy rEVolution. The World Just Before The INTERNET. Follow @KirillKlip Visit www.kirillklip.blogspot.com Contact KirillKlip@internationallithium.com Kirill Klip International Lithium 2018 www.internationallithium.com 17

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