outlook for the lithium market
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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011Ironmongers' Hall, City of London17 March 2011Speaker: Thomas Krause, ChemetallTRANSCRIPT
RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT
IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011www.ObjectiveCapitalConferences.com
Outlook for the lithium marketThomas Krause – Global Comms, Chemetall
Availability of Lithium – Meeting Tomorrow‘s Demand
Thomas KrauseHead of Marketing & Communications, Lithium
Rare Earth and Strategic Metals Investment SummitLondon, March 17, 2011
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Forward Looking Statements
This presentation may contain certain "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood
Holdings, Inc. and its subsidiaries (“Rockwood”). Although Rockwood believes the expectations reflected in
such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its
expectations will be realized. "Forward-looking statements" consist of all non-historical information, including
the statements referring to the prospects and future performance of Rockwood. Actual results could differ
materially from those projected in Rockwood’s forward-looking statements due to numerous known and
unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood’s
2008 Form 10-K with the Securities and Exchange Commission. Rockwood does not undertake any
obligation to publicly update any forward-looking statement to reflect events or circumstances after the date
on which any such statement is made or to reflect the occurrence of unanticipated events.
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ChemetallAt a glance
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Net Sales: $ 1,163Employees: 2,788
Net Sales: $ 3,192Employees: 9,600
Advanced Materials
Pigments & Additives
Chemetall
Chemetall is Part of Rockwood (NYSE ROC)
(USD millions)fiscal year 2010
SurfaceTreatment
LithiumDivision
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Chemetall Lithium – Global Market Position• More than 50% market share, for Li2CO3 approx. 30%• Very broad portfolio of specialty compounds and salts• Headquarter Frankfurt, Germany, Production sites
worldwide
Silver Peak, NV, USA
Taichung, Taiwan
Antofagasta, Chile Kings Mountain, NC, USA
Langelsheim, Germany
La Porte, TX, USA
New Johnsonville, TN, USAHQ Frankfurt, Germany
© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.
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LithiumToday‘s and future demand
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The Lithium World (Main Products and Applications)
Lithium carbonate
Butyl-lithium
Lithium metal
Lithium hydroxide
Lithium specialties
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Glass & Ceramics
Grease CO2 Absorption
Elastomers
Aluminum
Li Primary Batteries
Electronic Materials
Cement
Al-Li alloys
Agrochemicals
Agrochemicals
Li-Ion-Batteries
Li-Ion-Batteries
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Consumption of Lithium by End-use, 2009(approx. 100.000 mt LCE*)
Continuous casting
4%
Rubber and thermoplastics
4%
Pharmaceutical2%
Other15%
Air treatment6%
Aluminium6% Greases
9%
Batteries23%
Ceramics and glass31 %
* LCE = Lithium Carbonate Equivalents
© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.
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• The commitment and acceptance of eco cars is driven by the need to ensure independency from crude oil, and the reduction of greenhouse gases.
• Car manufacturers prefer long-term testing rather than immediate start of mass production.
• Most reports estimate the number of eco cars in 2020 in a range of 5 to 7 million.
• Battery development is still in progress, especially for pure electric vehicles and requires modified high sophisticated products.
• Recycling will play a more and more important role.
Market for Eco Cars should develop steadily
• Most reports estimate the number of eco cars in 2020 in a range of 5 to 7 million
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Lithium Carbonate Equivalent (LCE) DemandCar Type All Electric Vehicle Plug-in Hybrid Mild Hybrid
(EV) (PHEV) (HEV)
Approx. Battery Capacity 25 kWh 16 kWh 1 kWh
Lithium Demand (LCE) 22 kg 15 kg 2 kg(Approximate)
Addition of 1 million all electric cars will add 22,000 tons more LCE demand
10 % electrification (7 million cars) would require about 120,000 – 150,000 mt more by 2020
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Glass & Ceramics
Lubricating Greases
Other Applications
Portable Batteries
0
100.000
200.000
300.000
400.000
500.000
600.000
700.000
800.000
2010 2015 2020 2025 2030
Lithium Forecast - Market Penetration Scenarios(Basis: Six Different Market Studies)
ts LCE
LCE demand without
electromobility
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Glass & Ceramics
Lubricating Greases
Other Applications
Portable Batteries
0
100.000
200.000
300.000
400.000
500.000
600.000
700.000
800.000
2010 2015 2020 2025 2030
Lithium Forecast - Market Penetration Scenarios(Basis: Six Different Market Studies)
HEV + PHEV + EV(low scenario)
ts LCE
LCE demand without
electromobility
© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.
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Glass & Ceramics
Lubricating Greases
Other Applications
Portable Batteries
0
100.000
200.000
300.000
400.000
500.000
600.000
700.000
800.000
2010 2015 2020 2025 2030
Lithium Forecast - Market Penetration Scenarios(Basis: Six Different Market Studies)
HEV + PHEV + EV(high scenario)
HEV + PHEV + EV(low scenario)
ts LCE
LCE demand without
electromobility
© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.
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LithiumWorldwide Resources
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Worldwide Lithium Resources• Current estimates of worldwide Lithium resources total
approx. 30,000,000 tons Lithium. or 160,000,000 tons Lithium carbonate)*
• Reserves in active or proposed operations total 14,000,000 tons.(or 74,000,000 tons Lithium Carbonate)*
• Current worldwide demand is approx. 23,000 tons Lithium. (or 122,000 tons Lithium carbonate)*
Main sources are:• Brines from Salars• Ore (Spodumene, Hectorite, Jadarite)• Geothermal- and Oilfield Brines
There is enough Lithium
• All existing producers have announced significant capacity increase over the next years
• In total there are more than 50 active exploration projects worldwide covering all three main sources.
• * Source: Roskill, The economics of Lithium, 11th edition, 2009
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Lithium Availability WallMap Gerry M Clarke, Peter W Harben
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Critical Raw Materials for the EU
Source: Critical Raw Materials for the EU, European Commission Enterprise and Industry, June 2010
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LithiumProduction
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NaCl + CaSO4 * H2OHALITE
NaCl + KClSYLVINITE
MgCl2 * KCl * 6H2OCARNALLITEMgCl2 * 6H2OBISCHOFITE
MgCl2* LiCl *7H2OLi CARNALLITE
Natural brines fromEl Salar ~ 0,16% Li
END BRINE 6.0% Li
Further Purification, Processing, Crystallization
Li2CO3
LiCl
9 x 4 km dimension
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Chemetall Lithium Production Potential
2008 2010 2015 2020Lithium Carbonate
> 27,000 t > 33,000 t > 40,000 t > 50,000 t
Lithium Hydroxide
> 4,000 t > 5,000 t > 10,000 t > 15,000 t
2002 2005 2006 2008
Chemetall has steadily increased production in the past and expects to continue to do so in the future to meet market needs.
Expansion plans based on current market estimates(Salar Atacama; Chile, Silver Peak, USA; Langelsheim Plant,Germany)
2010
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• Recycling of production residues– From internal
processes– From customer’s
processes
Lithium Products Portfolio
Chemetall – Core Competencies
• Solar pond technology• Salt purification• Crystallization• Production of
High Purity Li salts
Brine and salt processing
OrganometallicsLithium Metal
Closed cycles of materials
• Casting of Lithium metal• Semi-finished metal product
• Large scale production of air and water sensitive materials
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LithiumReycling Lithium from Battery Materials
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The Importance of Recycling
• Environmental Issues• Extended Producer Responsibility• Regulation• Resources Preservation / Sustainability• Geostrategical Issues• Consumer Acceptance / Image
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Battery Recycling
Recent Status:
- Shredding of small Batteries- Pyrotechnical Reprocessing- Recycling of Co, Ni
Recent Status:
No viable economical andecological Recycling Systemfor large Batteries
No Lithium Recycling Lithium Recycling Mandatory
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Lith Rec
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0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
2010 2015 2020 2025 2030
t LCE
HEV + PHEV + EVRecycled
Recycling Potential (mean scenario) and Timing
Battery Life
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Chemetall as the leading producer of lithium compounds is committed to expand capacities and to develop tailor-made products in order to satisfy its customer‘s demands.
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