Shortest Intro To Lithium of All Time

Lithium
And Why It Matters

Overview
Lithium and why it matters

Basics
1. The Lithium Basics

2. Batteries
Batteries
3. E-Mobility needs lithium batteries

4. Future Energy
E-Mobility
5. Lithium is unique
Renewables
Unique
Conclusion
Overview
What Is Lithium?
Basics
Batteries
E-Mobility
Renewables
Lithium is the lightest – or least dense – metal that exists on earth

Unique
Allows for high performance batteries that are smaller and last longer than
other chemistries
Lithium never occurs freely in nature, only in compounds
Conclusion
Overview
Where do you find lithium?

Basics
Batteries
E-Mobility
Renewables
Lithium is abundant – there are deposits on every continent and new

Unique
discoveries are made constantly

For point of reference, seawater contains 0.17 mg/l. Brines currently being
used to produce lithium chemicals contain 4000 mg/l
Conclusion
Overview
What does a lithium deposit look like?

Basics
Batteries
E-Mobility
Lithium is easy to find but difficult and expensive to commercially extract

Renewables
There is a critical difference between:

• Deposit: I know it’s there
• Resource: I know how much there is
• Reserve: I know how to extract and commercialize it
Unique
Conclusion
Overview
Lithium is not mined from surface of salar

Basics
Batteries
E-Mobility
Renewables
Unique
Lithium brines are present in liquid state hundreds of meters underground

Conclusion
Overview
Argentina’s lithium is underground in brine

Basics
Batteries
E-Mobility
Renewables
• Aquifer type
Unique
• Aquifer geometry
• Boundary conditions
Conclusion
Lithium is not gold, soy, or oil
Overview Basics Batteries E-Mobility Renewables Unique Conclusion
Overview
The Lithium Market is tiny…

Basics
Batteries
E-Mobility
Renewables
• The lithium market reached US $1 billion for the first time in 2015
Unique
• Total market was worth only US $3 billion in 2017

• Oil market in 2017 was worth US $1729.695 billion, or more than
575x the size of the lithium market
Conclusion
Overview
What is lithium used for?

Basics
Batteries
E-Mobility
Renewables
Unique
Half of the world’s lithium production is used in batteries

Lithium is also used in greases and lubricants, ceramics, glass, and medication
“Pure” lithium in metal form only comprises 3% of global end use
Conclusion
Overview
…But Must Grow 20x By 2050

Basics
Batteries
E-Mobility
Renewables
Unique
60 million tons of LCE must be mined/extracted to electrify

world’s vehicle fleet, meaning 65 gigafactories worldwide
Conclusion
Overview
Lithium is not one product

Basics
Batteries
E-Mobility
Renewables
Cathode makers purchase lithium chemicals, whose value is not

Unique
determined by computing the % contained lithium

Conclusion
Overview
Lithium is not a commodity

Commodity: A basic good used in commerce that is
Basics
interchangeable with commodities of the same time. Essentially

there is little to no differentiation from an industrial standpoint
between a commodity coming from one producer of another
Batteries
ü Basic Good ü Used in commerce X Interchangeable

E-Mobility
• Commodities trade on an exchange, where they meet specified

minimum standards known as a basis grade.
• Specified standards allow for a standardized contract that forms the
Renewables
basis for futures, options, and other financial instruments

• Lithium carbonate is the most widely traded lithium compound
• Industrial Grade: 99.0% Li2CO3
• Battery Grade: 99.5% Li2CO3
Unique
• The value of lithium chemicals is not % contained lithium

• The last 0.5% matters as much as the purity
Conclusion
Overview
Lithium Matters
Clean energy – especially transforming transportation - requires
Basics
lithium ion batteries
The battery and lithium industries are experiencing exponential

Batteries
growth and rapid technological change
Not quite mining, not quite chemistry, not quite technology, not quite
E-Mobility
energy – understanding requires combination of knowledge of all

fields
Building a battery factory because you have lithium would be like

Renewables
building a bakery in the middle of a sugar cane farm – it’s not a

good idea
The lithium industry needs time to mature, access to financing, and

Unique
technologically advanced research and development to reach its

potential
Conclusion
Overview
Lithium Matters
Clean energy – especially transforming transportation - requires
Basics
lithium ion batteries
The battery and lithium industries are experiencing exponential

Batteries
growth and rapid technological change
Not quite mining, not quite chemistry, not quite technology, not quite
E-Mobility
energy – understanding requires combination of knowledge of all

fields
Building a battery factory because you have lithium would be like

Renewables
building a bakery in the middle of a sugar cane farm – it’s not a

good idea
The lithium industry needs time to mature, access to financing, and

Unique
technologically advanced research and development to reach its

potential
Conclusion
Overview
Lithium: Necessary but not Sufficient

Lithium only contributes 3-10% of
Basics
final battery cost
Lithium demand driven by battery

market size
Batteries
Battery prices fall while lithium

prices rise due to:
E-Mobility
• Economies of scale
• Increases in efficiency
• Technology advances
Renewables
As batteries become cheaper and

more efficient, more batteries are
demanded for an increasing
number of applications.
Dummy Text
Unique
Conclusion
Electric vehicles overwhelmingly drive
Overview
lithium demand
Basics
Batteries
E-Mobility
Renewables
Unique
Consumer electronics and stationary storage growth is not driving

exponential demand increase for lithium chemicals
Conclusion
Overview
Lithium batteries contain a lot more

Manufacturing – 21%
Basics
Battery Cells Battery Modules Battery Packs

• Cathode – 26% • Multiple Battery • Battery Modules
• Anode – 9% Cells • Software
Batteries
• Separator – 6% • Electronics • Management

• Electrolyte – 4% Systems
Module & Pack Components– 21%

E-Mobility
Renewables
Just having lithium does not

create ability to build even a
battery cell – or even a battery
cathode.
Unique
Conclusion
Overview
How much lithium is in an EV?

Basics
Batteries
E-Mobility
Renewables
Unique
The electric vehicle market is massive societal transformation.

Lithium is an integral part, but not the whole story
Conclusion
Overview
Thank you
Basics
Lithium is exciting.
If you would like to learn more about lithium, I invite you to listen to
Batteries
The Global Lithium Podcast, available at www.lithiumpodcast.com or

on Apple Podcasts, Spotify, etc.
I’m on social media on twitter @lithiumpodcast

E-Mobility
Renewables
Unique
Conclusion

Shortest Intro To Lithium of All Time

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Lithium

And Why It Matters

Lithium and why it matters

1. The Lithium Basics

3. E-Mobility needs lithium batteries

Lithium is the lightest – or least dense – metal that exists on earth

Where do you find lithium?

Lithium is abundant – there are deposits on every continent and new

discoveries are made constantly

What does a lithium deposit look like?

Lithium is easy to find but difficult and expensive to commercially extract

There is a critical difference between:

Lithium is not mined from surface of salar

Lithium brines are present in liquid state hundreds of meters underground

Argentina’s lithium is underground in brine

The Lithium Market is tiny…

• Total market was worth only US $3 billion in 2017

What is lithium used for?

Half of the world’s lithium production is used in batteries

…But Must Grow 20x By 2050

60 million tons of LCE must be mined/extracted to electrify

Lithium is not one product

Cathode makers purchase lithium chemicals, whose value is not

determined by computing the % contained lithium

Lithium is not a commodity

interchangeable with commodities of the same time. Essentially

ü Basic Good ü Used in commerce X Interchangeable

• Commodities trade on an exchange, where they meet specified

basis for futures, options, and other financial instruments

• The value of lithium chemicals is not % contained lithium

lithium ion batteries

The battery and lithium industries are experiencing exponential

growth and rapid technological change

energy – understanding requires combination of knowledge of all

Building a battery factory because you have lithium would be like

building a bakery in the middle of a sugar cane farm – it’s not a

The lithium industry needs time to mature, access to financing, and

technologically advanced research and development to reach its

lithium ion batteries

The battery and lithium industries are experiencing exponential

growth and rapid technological change

energy – understanding requires combination of knowledge of all

Building a battery factory because you have lithium would be like

building a bakery in the middle of a sugar cane farm – it’s not a

The lithium industry needs time to mature, access to financing, and

technologically advanced research and development to reach its

Lithium: Necessary but not Sufficient

final battery cost

Lithium demand driven by battery

Battery prices fall while lithium

As batteries become cheaper and

Consumer electronics and stationary storage growth is not driving

Lithium batteries contain a lot more

Battery Cells Battery Modules Battery Packs

• Separator – 6% • Electronics • Management

Module & Pack Components– 21%

Just having lithium does not

How much lithium is in an EV?

The electric vehicle market is massive societal transformation.