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Lithium Supply & Markets 2010 Chairman\'s Opening Speech


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Powerpoint presentation of the opening speech for Lithium Supply & Markets 2010 in Las Vegas, 26-28 January 2010.

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Lithium Supply & Markets 2010 Chairman\'s Opening Speech

  1. 1. Lithium: a year of change (opening remarks) Simon Moores, Deputy Editor, Industrial Minerals, UK
  2. 2. <ul><li>Lithium Supply </li></ul><ul><li>& Markets 2010 </li></ul><ul><li>26-28 January 2010 </li></ul>Welcome to Las Vegas
  3. 3. Silver Peak ( Brine ) Kings Mountain ( hectorite - in development) Clayton Valley ( Brine ) Only operational lithium mine in North America Nevada: home of lithium in North America
  4. 4. Evolution of sources Spodumene/Petalite 1960s Brine 1990s Hectorite clay Geothermal Jadarite 2010s ? Evolution of sources
  5. 5. <ul><li>Location: Santiago, Chile </li></ul><ul><li>Date: 26-28 January 2009 </li></ul><ul><li>Delegation: 150 </li></ul><ul><li>Industry tour: Salar de Atacama – SQM & Chemetall </li></ul>The success of LSM09
  6. 6. A year of change…lithium hits the mainstream Toyota in lithium agreement 19/1/2010 Lithium car batteries may shift balance of industrial power 9/10/2009 Full charge in lithium-ion battery boom 1/02/2009 Lithium for 4.8 bn EVs lets Bolivia upset market 7/10/2009 Born in the big bang, lithium to power hybrids 20/1/2010 Bolivia hopes it can meet China’s appetite for lithium 20/12/2009
  7. 7. A year of change : key developments <ul><li>1.Supply </li></ul><ul><li>2.US Stimulus </li></ul><ul><li>3. Asia </li></ul><ul><li>4. Global auto industry </li></ul>
  8. 8. 1. Supply developments <ul><li>Galaxy leads pack (spodumene) </li></ul>
  9. 9. <ul><ul><li>Pilot plant stage - 40 tpm Li2CO3, $5.7m. </li></ul></ul><ul><ul><li>20-30,000 tpa Li2CO3 by 2012-13 </li></ul></ul>1. Supply developments <ul><li>Bolivian progress at Uyuni </li></ul><ul><ul><li>$5m. Borates plant </li></ul></ul><ul><ul><li>Reserves increase to 8.9m. tonnes Li? </li></ul></ul>
  10. 10. <ul><li>Emerging hubs of activity </li></ul><ul><ul><li>Nevada, USA (majority brine) </li></ul></ul><ul><ul><li>Ontario, Canada (spodumene) </li></ul></ul><ul><ul><li>Alberta, Canada (brine) </li></ul></ul><ul><ul><li>Argentina (brine) </li></ul></ul>1. Supply developments
  11. 11. 2. US $2.4 billion battery stimulus Chemetall - $28m. Johnson Controls $299.2m. EnerDel - $118.5m. Mine Market Tesla Motors - $465m.
  12. 12. 3. Asia <ul><li>South Korea </li></ul><ul><ul><li>Interest in Bolivia lithium </li></ul></ul><ul><ul><li>SK Energy Li-ion supply deal with Mitsubishi Fuso </li></ul></ul><ul><ul><li>LG Chem, Samsung </li></ul></ul><ul><li>China </li></ul><ul><ul><li>BYD ambitions, Buffett investment </li></ul></ul><ul><ul><li>BYD produces own Li-ion </li></ul></ul><ul><ul><li>Approved to mass produce E-6 </li></ul></ul><ul><li>Enter the industrial giants </li></ul><ul><ul><li>POSCO, South Korea buys into Pan American Lithium </li></ul></ul><ul><ul><li>Toyota Tsusho Corp. (22% Toyota Motor Corp), Japan , buys into Orocobre lithium </li></ul></ul>
  13. 13. 4. Change in thinking for auto manufacturers <ul><li>Recession </li></ul><ul><li>Old business model not working </li></ul><ul><li>Shift to the big business of tomorrow – electric cars (?) </li></ul>
  14. 14. 4. Change in thinking for Auto manufacturers “ Our electric vehicle investment is not one-car innovation, it is a new way of looking at our industry. This is the beginning of the story.” Carlos Ghosn, CEO, Nissan
  15. 15. <ul><li>Toyota (Japan) now the biggest car corporation </li></ul>4. Change in thinking: from West to East China the biggest carmaker (15m. Units in 2010, 10% rise on 2009)
  16. 16. Lithium in 2009 Global interest Actual lithium carbonate demand by 20-30% Li2CO3 price fall 20% $3/lb in Jan 09, 2.3-2.4/lb in Jan ’10 2005/2006 levels Lithium in 2009
  17. 17. Recession hits established end markets <ul><li>Market (% of market) </li></ul><ul><li>Ceramics (28-32% with glass ) </li></ul><ul><li>Glass (28-32% with ceramics ) </li></ul><ul><li>Batteries (22-25%) </li></ul><ul><li>Grease (~10%) </li></ul><ul><li>Reason </li></ul><ul><li>Construction </li></ul><ul><li>Construction/Auto </li></ul><ul><li>Handheld electronics </li></ul><ul><li>Auto, lower industrial activity </li></ul>Recession hits established end markets Demand down by 20-30%...
  18. 18. <ul><li>1. Magazine (monthly) </li></ul>Industrial Minerals & lithium today + News Analysis + In-depth features/industry research + Pricing comment and summary
  19. 19. <ul><li>2. </li></ul><ul><ul><li>Daily news bulletins </li></ul></ul><ul><ul><li>Pricing as it happens </li></ul></ul><ul><ul><li>Weekly focus </li></ul></ul><ul><ul><li>Database access: 10 years of pricing, news, and features </li></ul></ul><ul><ul><ul><li>Lithium carbonate & concentrate pricing </li></ul></ul></ul>Industrial Minerals & lithium today
  20. 20. <ul><li>3. Conferences </li></ul><ul><ul><li>LSM 09 – Santiago, Chile </li></ul></ul><ul><ul><li>LSM 10 – Las Vegas, USA </li></ul></ul><ul><ul><li>LSM 11? </li></ul></ul><ul><ul><ul><li>Argentina? Canada? Australia? South Korea? </li></ul></ul></ul>Industrial Minerals & lithium today
  21. 21. The team : Industrial Minerals (1967 - present ) Mike O’Driscoll, Editor (chair) Simon Moores , Deputy Editor (chair) Ismene Clarke , Advertising Manager
  22. 22. The team : Industrial Minerals Events (2007 - present ) Victoria Smith, LSM10 programmer Charlie Shelley-Smith, Sponsorship & Exhibition Manager Laura Black , Logistics Co-ordinator
  23. 23. <ul><li>930-1030 Keynotes </li></ul><ul><li>How strategic a resource is lithium? </li></ul><ul><li>Reserves & Resources: An update 2010 </li></ul><ul><li>11-1230 The world’s present lithium supply </li></ul><ul><li>SQM, Chemetall, FMC </li></ul><ul><li>1400-1530 Emerging North American production </li></ul><ul><li>Canada Lithium, International Lithium Corp., Western Lithium </li></ul><ul><li>1600-1700 Lithium resources panel discussion </li></ul><ul><li>1700-1730 Regulatory risks to lithium supply </li></ul>LSM10 Day One
  24. 24. LSM10 Day LSM10 Day two 915-1045 Focus on the EV market Panel discussion: NAATbatt; Ford; EnerDel; Angelo & Newton Applications for advance batteries & grid storage - Altairnano Inc 11-1230 Independent Analysis of the Market & EV future Roskill Information Services Panel discussion: Gilford Securities; Plug In America; MDB Capital 1400-1530 Global supply developments 1 Galaxy Resources (Australia/China); Lithium Americas (Argentina); 1600-1630 Global supply developments 2 Lithium One (Canada/Argentina) 1630-1700 The future of lithium
  25. 25. LSM10 Field Trip – Western Lithium