January 2010

Lithium: a year of change (opening remarks)

Simon Moores, Deputy Editor, Industrial Minerals, UK

Lithium Supply

& Markets 2010

26-28 January 2010

Welcome to Las Vegas

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

Evolution of sources

Spodumene/Petalite 1960s

Brine 1990s

Hectorite clay Geothermal Jadarite 2010s ?

Evolution of sources

Location: Santiago, Chile

Date: 26-28 January 2009

Delegation: 150

Industry tour: Salar de Atacama – SQM & Chemetall

The success of LSM09

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

A year of change: key developments

1.Supply

2.US Stimulus

3. Asia

4. Global auto industry

1. Supply developments

Galaxy leads pack (spodumene)

Pilot plant stage - 40 tpm Li2CO3, $5.7m.

20-30,000 tpa Li2CO3 by 2012-13

1. Supply developments

Bolivian progress at Uyuni

$5m. Borates plant

Reserves increase to 8.9m. tonnes Li?

Emerging hubs of activity

Nevada, USA (majority brine)

Ontario, Canada (spodumene)

Alberta, Canada (brine)

Argentina (brine)

1. Supply developments

2. US $2.4 billion battery stimulus

Chemetall - $28m.

Johnson Controls $299.2m.

EnerDel - $118.5m.

Mine

Market Tesla Motors - $465m.

3. Asia

South Korea Interest in Bolivia lithium

SK Energy Li-ion supply deal with Mitsubishi Fuso

LG Chem, Samsung

China BYD ambitions, Buffett investment

BYD produces own Li-ion

Approved to mass produce E-6

Enter the industrial giants POSCO, South Korea buys into Pan American Lithium

Toyota Tsusho Corp. (22% Toyota Motor Corp), Japan, buys into Orocobre lithium

4. Change in thinking for auto manufacturers

Recession

Old business model not working

Shift to the big business of tomorrow – electric cars (?)

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

Toyota (Japan) now the biggest car corporation

4. Change in thinking: from West to East

China the biggest carmaker (15m. Units in 2010, 10% rise on 2009)

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

Recession hits established end markets

Market (% of market)

Ceramics(28-32% with glass)

Glass (28-32% with ceramics)

Batteries (22-25%)

Grease (~10%)

Reason

Construction

Construction/Auto

Handheld electronics

Auto, lower industrial activity

Recession hits established end markets

Demand down by 20-30%...

1. Magazine (monthly)

Industrial Minerals & lithium today

+ News Analysis

+ In-depth features/industry research

+ Pricing comment and summary

2. indmin.com

Daily news bulletins

Pricing as it happens

Weekly focus

Database access: 10 years of pricing, news, and features

Lithium carbonate & concentrate

pricing

Industrial Minerals & lithium today

3. Conferences

LSM 09 – Santiago, Chile

LSM 10 – Las Vegas, USA

LSM 11? Argentina? Canada? Australia? South Korea?

Industrial Minerals & lithium today

The team: Industrial Minerals (1967 - present )

Mike O’Driscoll, Editor (chair)

Simon Moores, Deputy Editor (chair)

Ismene Clarke, Advertising Manager

The team: Industrial Minerals Events (2007 - present )

Victoria Smith, LSM10 programmer

Charlie Shelley-Smith, Sponsorship & Exhibition Manager

Laura Black, Logistics Co-ordinator

930-1030 KeynotesHow strategic a resource is lithium?

Reserves & Resources: An update 2010

11-1230 The world’s present lithium supply SQM, Chemetall, FMC

1400-1530 Emerging North American production Canada Lithium, International Lithium Corp., Western Lithium

1600-1700 Lithium resources panel discussion

1700-1730 Regulatory risks to lithium supply

LSM10 Day One

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 futureRoskill 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 2Lithium One (Canada/Argentina)

1630-1700 The future of lithium

LSM10 Field Trip – Western Lithium