1Introduction CONTENT. Batteries and Vehicles. Lithium Industry

Transcription

1 Issue 01, January 01 15th, 2010

2 CONTENT Batteries and Vehicles GM announced the first lithium-ion battery for the Volt BYD s electric vehicle plans in the US Honda showed 2011 version of the CR-Z at Detroit Auto Show Toyota unveiled compact hybrid electric vehicle A123 Systems announced capacity expansion Lithium Industry Galaxy Resources received approvals in China Li3 Energy-Lithium projects in South America 1Introduction Global warming is nowadays an important concern. Many iniciatives have been discussed and many of them had been implemented, but no many have succeeded. The automotive industry has an important responsibility as a CO2 emission source, one of the major greenhouse gases. It is estimated that around 25% of CO2 emissions come from the transport sector. Therefore in recent years car manufacturers have been developing electric drive vehicles in different versions. In all of them an energy storage device is required, and lithium based batteries are widely recognized as the best alternative. The development of these electric vehicles is going to impact all industries related with lithium and batteries; actually, many new lithium projects have come on stream expecting to satisfy this new demand. In this context, updated information, analysis, and knowledge are crucial for the decision-making process of all the entities involved in these industries. With Signum Box At the Moment Lithium, Batteries and Vehicles you will be provided with the latest information obtained from their original sources in a simple and clear way, which will help you to be informed and updated. At the end of Q1 2010, we will launch the serie Signum Box Analysis Lithium, Batteries and Vehicles: Perspectives & Trends which collects the most relevant events of the quarter, with a deep analysis of these industries and with medium and long term forecasts and trends. Signum Box is a Chilean consulting firm founded in mid 2009 with the objective to offer market intelligence in industries related with natural resources, chemicals and technologies in both national and international markets. Western Lithium Corp Preliminary results of economic evaluation Talison Spodumene exports in 2009

3 2 Batteries and Vehicles BRIEF NEWS FORD Hybrid electric vehicle sales in 2009 Date: January, 5th Source: Ford sales in December 2009 of hybrid electric vehicles (HEV) reached 2,843 units, 147% more than December Ford HEV models include: Ford Fusion, Ford Escape, Mercury Milan and Mercury Mariner. For the complete year, HEV sales were 33,502 units, 72% more than uring the first two weeks of 2010 the 2010 North American International Auto Show (NAIAS) was presented in Detroit. As the global economy has not reached the levels before crisis, the highlight of this year was electric vehicles, showing that hybrid electric and pure electric vehicles have become a main stream solution for a cleaner transportation. HIGHLIGHTS GM announced the manufacture of the first lithium-ion battery pack for the VOLT Date: January, 7th Source: After three years since the launching of the Chevy Volt, GM announced the manufacture of the first pack of lithium-ion batteries at GM s Brownstown battery pack assembly plant. This plant is part of the investment of USD 43 million announced in August According the Company, regular production of these batteries will start on Q4, The battery pack will contain 16 KWh of lithium-ion cells of which 8 KWh would be usable. According Compact Power, LG Chem s subsidiary, each KWh would require 0.74 Kg of lithium carbonate equivalent. This would imply that each battery of the VOLT would use around Kg of Lithium Carbonate.

4 BRIEF NEWS Valence Technologies Contract with The Tanfield group Date: January, 12th Source: Valence Technologies, an US manufacturer of Lithium Iron Magnesium Phosphate batteries, announced a contract of USD 3.1 million with The Tanfield Group Plc, owner of Smith Electric Vehicles, in order to deliver battery modules for their fully electric vehicles. Mitsubishi Motors Electric vehicle program in Canada Date: January,15th Source: Mitsubishi Motors Corporation (MMC), Mitsubishi Motors Sales of Canada and Hydro Québec announced a joint program in order to put up to 50 i-miev on Boucherville roads (Montreal). Aurantia group Start producing Lithium-ion batteries in Spain Date: January, 15th Source: According the spanish site Diario de Cadiz, the Aurantia group would start producing lithium-ion batteries for hybrid and electric vehicles in the context of a project named Bahia de Cadiz. BYD s electric vehicle plans in the US Date: January, second week Source: Henry Li, General Manager of BYD Auto Export Trade Division, announced in the conference speech at 2010 North American International Auto Show (NAIAS) in Detroit that the E6 pure electric vehicle has completed all the tests to meet chinese requirements, and would be available in the US market before the end of The E6 has an expected range per charge of cycle of 330 Km in cruising mode, and an acceleration time from 0 to 100 Km/hour in less than 14 seconds. This vehicle is powered by a lithium iron phosphate battery (LiFEPO4, commonly named Fe Battery ). Honda showed 2011 version of the CR-Z at Detroit Auto Show Date: January, 11th Source: At the NAIAS in Detroit, Honda showed the new 2011 CR-Z hybrid coupe, which is expected to be available in the market by July- August The CR-Z operates with a 10 kilowatt electric motor which recharges the 100 volt nickel metal hydride battery pack. Toyota unveiled compact hybrid electric vehicle Date: January, 11th Source: At the NAIAS, Toyota Motor Sales (TMS) unveiled the FT-CH hybrid concept. The Company expects to introduce plug-in hybrid and pure electric vehicles by 2012 and hydrogen fuel cell vehicles by Regarding 2010 sales projections, Toyota estimates that they would sell around 1 million of hybrid-electric vehicles globally. Toyota still uses nickel metal hydride batteries for its hybrid models, but they are also introducing lithium-ion batteries in the first generation of the Prius plug in hybrid. A123 Systems announced capacity expansion Date: January, 14th Source: A123 Systems announced that it has started to make investments in its plant in Livonia, Michigan, in order to expand the final cell assembly capacity by up to 200 MW hours once fully operational. This expansion will allow A123 to produce batteries for over 320,000 hybrid electric vehicles with 1.1 kwh battery systems, or over 24,000 plug in hybrid vehicles with 15 kwh battery systems per year. This expansion program is in the context of the award of USD 249 million that the Company received last December from the US Department of Energy.

5 3 Lithium Industry BRIEF NEWS TNR Gold Acquired fairservice mining leases Date: January, 15th Source: The Canadian Company TNR Gold Corp. announced the option to acquire 100% interest in the Faiservice Mining Leases close to their Mavis Lake Property, Ontario. The property of 88.4 hectareas has spodumene-beryl-tantalitetype pegmatites and according with past estimations the property would contain 500,000 MT of Li2O at 1% content. uring the first two weeks of 2010 companies that are developing lithium projects did important announcements. Galaxy Resources is going forward with the project in China, American Lithium Minerals added new lithium projects to its portfolio and Li3 Energy is going forward with projects in South America. In addition, we have seen in the media many news regarding Salar de Uyuni and the importance that Evo Morales, the President of Bolivia, gives to these lithium reserves. According to the US Geological Survey (USGS), Bolivia has 5.4 million metric tones of lithium (reserve base), which is roughly 50% of worldwide reserves. On the other hand in Chile, main producer of lithium in the world, local authorities have shown more interest in this mineral. Recently the Chilean government recognized the lithium as a strategic mineral and announced the establishment of a Lithium table ; a multidisciplinary group of experts that have the mission to study and analyse the opportunities that this industry represents for the country. HIGHLIGHTS Galaxy Resources received approvals in China Date: January, 7th Source: Galaxy Resources announced that it had received safety and energy approvals for its Lithium Carbonate plant in China, Jiangsu. These approvals were granted by the Suzhou Municipal Administration of Work Safety in China. With these approvals, the Company will request the business license, the land usage right certificate and the permits for the project planning and for the construction of the project.

6 BRIEF NEWS American Lithium Minerals New lithium projects to its portfolio Date: January, various Source: At the beginning of the month, American Lithium Minerals announced an agreement with Gold Summit Corporation in order to acquire five exploration brine projects in Nevada. In the second week, the Company announced four new lithium projects; three in Nevada (through an agreement with Nevada Mining Co.) and one in Utah. Western Lithium Corp Preliminary results of economic evaluation Date: January, 12th Source: Western Lithium Corporation, an american company which is developing a lithium project at Kings Valley, Nevada, announced the preliminary results of the economic evaluation of the project. Some assumptions that are interesting to mention: In a first stage, they plan to produce around 27,700 metric tones (MT) of lithium carbonate equivalent per year and 115,000 MT of potassium sulphate. They estimate a cash cost of 1,957 USD/MT of lithium carbonate, after potassium sulphate by product credit. Total capital cost is estimated at USD 427 million. Selling price in the first stage: Lithium carbonate 6,614 USD/MT; Potassium sulphate 600 USD/MT. With these assumptions, the Company has estimated that revenues for this first stage would reach USD 263 million per year, with an EBITDA of approximately USD 130 million. The present value of this stage (pre-tax), on the other hand, would reach USD 714 million, and the internal rate of return (pre-tax as well) is estimated at 28%. Galaxy Resources Mining lease granted Date: January, 15th Source: The Company announced that the Australian Department of Mines and Petroleum approved the mining leases for all the area that covers Mt Cattlin tenements. Talison Spodumene exports in 2009 Date: January, various Source: According the statistics of the port of Bunbury, Australia, Talison exported in ,772 MT of spodumene, almost the same amount exported in If we consider a content of 6% Li2O (universal grade), total amount exported in 2009 corresponds to almost 32,000 MT of lithium carbonate equivalent. Talison produces spodumene in four different grades: spodumene concentrate (7,5% Li2O); fine spodumene concentrate (7.3% Li2O); glass grade (4.8% Li2O); and universal grade (6% Li2O). Lithium1 Sal de Vida lithium project in Argentina Date: January, 14th Source: The Canadian Company Lithium1 reported the initial results of the sampling program and the commencement of drilling at the Sal de Vida lithium brine project in Argentina. This project is located close to FMC`s operations at the Salar del Hombre Muerto. The results of the sampling were (mean values): 679 ppm and 0,774% of lithium and potassium, respectively. The relationship between magnesium and lithium in the sample were According SQM, the brines in the Salar de Atacama contain higher concentrations of lithium than any other brine deposit, reaching close to 2,200 ppm of lithium on average.

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