11 May 2016
Nemaska Lithium intends to become
a lithium hydroxide and lithium carbonate supplier
to the emerging lithium battery market
that is largely driven by
* electric vehicles,
* consumer products and
* energy storage.
The Corporation is developing in Quebec
one of the most important
spodumene lithium hard rock deposit in the world,
both in volume and grade.
The spodumene concentrate produced
at Nemaska Lithium's Whabouchi mine
will be shipped to the Corporation's
lithium compounds processing plant
to be built in Shawinigan, Quebec.
This plant will transform spodumene concentrate
into high purity lithium hydroxide
and carbonate using the proprietary methods
developed by the Corporation,
and for which patent applications have been filed.
Nemaska Lithium Overview
1. Nemaska Lithium has a World Class Lithium Asset:
Whabouchi Spodumene Mine –
2 nd richest and largest deposit in the world
with 27.3 MT Proven and Probable Reserves
for an initial 26 years mine life -
potential to increase, average grade 1.53% Li2O –
Federal and Provincial permits granted, ready to build
2. Proprietary process to make
preferred high-purity lithium compound
for batteries –
lithium hydroxide
3. Cost Leader in the lithium industry –
production costs are lower than peers
per Feasibility Study, due to low cost mining,
unique chemical process and
affordable hydroelectricity
4. Cleanest Lithium Production Process –
State of the art mining processes and
green hydroelectricity
make the cleanest lithium compounds globally
5. Experienced Management and
In-House Technical Teams – mining production
experience and chemical process experience
6. Lithium demand forecasted to outstrip supply
Lithium Demand Expected to Outstrip Supply
100,000t of new lithium carbonate equivalent (LCE)
needed by 2021 L
Lithium Hydroxide and Carbonate Prices
Expected to Increase
Price forecast trend for battery-grade
lithium hydroxide and lithium carbonate (US$/t CIF)
Year Lithium Hydroxide Lithium Carbonate
2015 8,640 5,575
2016 9,473 6,292
2017 9,892 6,854
Lithium Production is Limited
4 major producers of lithium globally
• Chile
– Producers - SQM & Albemarle
– Chilean govt. recently authorized
Albemarle to increase production capacity
– Partial lift of the moratorium on
issuance of new permits announced –
Possibly 2 new exploration permits
to be issued to Codelco
• Argentina
– Producers – FMC & Orocobre
– Orocobre still in commissioning phase.
Should reach capacity by end of 2016
• Australia/China
– Producer – Talison and Chinese Transformers
– Talison jointly owned by
Tianqi Lithium (51%) and Albemarle (49%)
– Tianqi currently at maximum transformation capacity
– Mine output capacity increase unlikely for a few years
Lithium New Comers to Meet New Demand
3 Lithium projects permitted globally today
* Nemaska Lithium (Canada) 28,000 t LCE
* Neometal/ Ganfeng (Australia) 20,000 t LCE
* Lithium Americas/ SQM (Argentina) 17,000 t LCE
VIEW NEMASKA LITHIUM PRESENTATION
DETAILS
and its wholly owned subsidiaries
("Nemaska Lithium" or the "Corporation")
(TSX VENTURE:NMX)(OTCX:NMKEF)
and
Johnson Matthey Battery Materials Ltd (JMBM)
of Candiac, Quebec,
a wholly owned subsidiary of
Johnson Matthey Plc (LSE:JMAT)
announced today the signing of the final agreements
contemplated in the collaboration, financial support
and lithium salt supply MOU previously
announced in the press release
dated November 19, 2015.
A first agreement (the deposit agreement)
contemplates an up-front payment of CDN$12M
by JMBM in exchange for services and
products of the same value
from the Nemaska Lithium Phase 1 Plant.
At completion, the total amount of $12M
will be deposited in an escrow account
and will be disbursed to Nemaska Lithium
according to certain milestones.
A second agreement
provides for a long term supply relationship
for lithium salts between Nemaska Lithium and JMBM.
This is Nemaska Lithium's
first commercial offtake agreement.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
