1) While SQM plans to expand lithium production capacity to 216,000 tonnes by 2025, analysts say this will not affect supply for 4-5 years due to the time needed to complete expansions. When the expansions are finished, demand is still expected to outpace supply. 2) Forecasts show lithium demand exceeding 1 million tonnes per year by 2026, far more than SQM's potential 2025 capacity. 3) Meeting the goal of electrifying the world's vehicle fleet by 2050 would require average annual lithium production of 3.1 million tonnes for 20 years.

1. SQM Lithium
OverSupply
Scare 2.0

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
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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
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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
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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
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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
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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
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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
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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
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10. The Real Lithium Scare.
You Can’t Get It.
Kirill Klip International Lithium 2018
www.internationallithium.com
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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
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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
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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
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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
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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
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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
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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
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