© Tianqi Lithium Australia

WA – Lithium Valley???

Phil Thick GM

29 January 2018

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Lithium Market

4. Market Update §  Roskill  (June  2017)  Base  Case  Forecast  CAGR¹  (17.7%)  /  Consensus  (13.4%)  through  2026  §  2016  LCE²  demand  forecast  to  increase  more  than  3-­‐5x  from  200ktpa  to  700-­‐1,000ktpa  by  2026  §  Demand  driven  by  the  rechargeable  baKery  sector  which  is  supported  by  pro  EV  government  policy  

and  the  introducNon  of  new  EV  models  by  automakers  

Source:  Average  of  CAGR  Es3mates  (Roskill,  June  2017;  Albemarle  Investor  Day  Presenta3on,  16  March  2017;  SQM  Investor  Day  Presenta3on,  9  September  2017;  Industrial  Minerals  Lithium  Presenta3on,  1  June  2017;  Canaccord  Genuity  Lithium  Market  Update,  27  June  2017;  Stormcrow  Lithium  Presenta3on,  31  May  2017;  Deutsche  Bank  Lithium  Ion  Age  Report,  9  May  2016)  

 -­‐        

 200,000    

 400,000    

 600,000    

 800,000    

 1,000,000    

 1,200,000    

2016   2017   2018   2019   2020   2021   2022   2023   2024   2025   2026  

LCE  (ton

)�

Roskill  (June  2017)  &  Combined  Lithium  Demand  Forecasts  through  2026  by  Leading  Global  Lithium  Analysts,  Investment  Banks  &  Market  ParNcipants  

Average  of  CAGR  EsNmates  (13.4%  CAGR)   Roskill  2017  (17.7%  CAGR)  

2026 1,000kt LCE  

2021 450kt LCE  

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Talison Lithium – Greenbushes •  Tianqi Lithium own 51% of Talison Lithium who operate the

Greenbushes mine in Western Australia

•  128 years of mining (Tin, Tantalum, Lithium)

•  Commenced manufacturing lithium concentrate in 1985, experts in this field for >30 years

•  World’s largest lithium producer (30-35% of the global lithium supply)

•  Largest and highest grade mineral resource globally

•  2016 lithium proven and probable mineral reserves 86.40Mt at a grade of 2.35% Li2O (life of mine >60 years)

•  Highly flexible operation, able to adjust production profile to meet market demand

Western Australian Lithium

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Other Lithium Sources –  Pilgangoora – Pilbara Minerals –  Pilgangoora – Altura Minerals –  Wodgina – Mineral Resources –  Mt Marion – Mineral Resources/Neometals –  Mt Cattlin – Galaxy Resources –  Bald Hill – Tawana Resources –  Earl Grey – Kidman Resources

Western Australian Lithium

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–  Headquartered in Chengdu China, one of the 4 major global lithium companies

–  Listed on Shenzhen Stock Exchange market cap ~ US10 billion

–  Operates the two largest lithium carbonate plants in the world in China

–  Seeking expansion opportunities to meet rapidly rising global demand

–  Building new $400million plant in Kwinana

–  Fast tracked stage 2 of plant – another $320million already commenced

–  Expanding Greenbushes mine with $320million expansion

–  Kwinana Lithium Hydroxide Processing Plant (LHPP) will be the largest in the world

–  3 times size of next largest

–  Highest purity lithium hydroxide in the world

–  Why Kwinana?

Tianqi Lithium Corporation

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•  Kwinana is the largest industrial area in WA with approximately 4,500 people directly employed and 25,000 secondary jobs arsing from the companies in the area

•  65% of people employed in the KIC are from the local area, so ready source of qualified and trained people

•  Access to water, gas and electricity

•  Access to reagents

•  Access to top quality construction and maintenance facilities

•  Proximity to mine and container port

Kwinana – Multiple advantages

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Simplified and integrated production and delivery logistics supply chain

Mine  to  chemical  plant  •  Greenbushes  to  Kwinana  •  250km,  3  hours  by  road  

Chemical  plant  to  export  port  •  Kwinana  to  Fremantle  •  30km,  30  mins  by  road  

Conver=ng  lithium  ore  to  lithium  chemicals  in  approximately  6  weeks  (based  on  Tianqi’s  produc=on  chain)  

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LHPP Update

•  100% Tianqi Lithium owned project currently under construction

•  Capacity: 48,000tpa battery-grade lithium hydroxide

•  World’s largest and first fully automated battery-grade lithium hydroxide facility

•  Train 1 (24,000tpa) construction expected to be complete by the end of 2018

•  Train 2 expected to add another 24,000tpa capacity by the end of 2019

•  Converting Greenbushes spodumene into battery-grade lithium hydroxide for use in

the EV industry

•  ~85% of contract spend awarded to local WA companies

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October 2016

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January 2018

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•  Can WA/Kwinana become a key player in the global lithium market?

•  Can we go further down the supply chain?

•  Can we become a major battery producer?

•  What would it take to make these things happen?

Where to from here?