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RARE EARTHS, SPECIALITY & STRATEGIC METALS INVESTMENT SUMMIT IRONMONGERSHALL, CITY OF LONDON THURSDAY , 17 MAR 2011 www.ObjectiveCapitalConferences.com Outlook for the lithium market Thomas Krause – Global Comms, Chemetall

Outlook for the lithium market

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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011Ironmongers' Hall, City of London17 March 2011Speaker: Thomas Krause, Chemetall

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Page 1: Outlook for the lithium market

RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011www.ObjectiveCapitalConferences.com

Outlook for the lithium marketThomas Krause – Global Comms, Chemetall

Page 2: Outlook for the lithium market

Availability of Lithium – Meeting Tomorrow‘s Demand

Thomas KrauseHead of Marketing & Communications, Lithium

Rare Earth and Strategic Metals Investment SummitLondon, March 17, 2011

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Forward Looking Statements

This presentation may contain certain "forward-looking statements" within the meaning of the Private Securities

Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood

Holdings, Inc. and its subsidiaries (“Rockwood”). Although Rockwood believes the expectations reflected in

such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its

expectations will be realized. "Forward-looking statements" consist of all non-historical information, including

the statements referring to the prospects and future performance of Rockwood. Actual results could differ

materially from those projected in Rockwood’s forward-looking statements due to numerous known and

unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood’s

2008 Form 10-K with the Securities and Exchange Commission. Rockwood does not undertake any

obligation to publicly update any forward-looking statement to reflect events or circumstances after the date

on which any such statement is made or to reflect the occurrence of unanticipated events.

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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ChemetallAt a glance

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Net Sales: $ 1,163Employees: 2,788

Net Sales: $ 3,192Employees: 9,600

Advanced Materials

Pigments & Additives

Chemetall

Chemetall is Part of Rockwood (NYSE ROC)

(USD millions)fiscal year 2010

SurfaceTreatment

LithiumDivision

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Chemetall Lithium – Global Market Position• More than 50% market share, for Li2CO3 approx. 30%• Very broad portfolio of specialty compounds and salts• Headquarter Frankfurt, Germany, Production sites

worldwide

Silver Peak, NV, USA

Taichung, Taiwan

Antofagasta, Chile Kings Mountain, NC, USA

Langelsheim, Germany

La Porte, TX, USA

New Johnsonville, TN, USAHQ Frankfurt, Germany

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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LithiumToday‘s and future demand

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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The Lithium World (Main Products and Applications)

Lithium carbonate

Butyl-lithium

Lithium metal

Lithium hydroxide

Lithium specialties

Pharmaceuticals

Pharmaceuticals

Pharmaceuticals

Glass & Ceramics

Grease CO2 Absorption

Elastomers

Aluminum

Li Primary Batteries

Electronic Materials

Cement

Al-Li alloys

Agrochemicals

Agrochemicals

Li-Ion-Batteries

Li-Ion-Batteries

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Consumption of Lithium by End-use, 2009(approx. 100.000 mt LCE*)

Continuous casting

4%

Rubber and thermoplastics

4%

Pharmaceutical2%

Other15%

Air treatment6%

Aluminium6% Greases

9%

Batteries23%

Ceramics and glass31 %

* LCE = Lithium Carbonate Equivalents

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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• The commitment and acceptance of eco cars is driven by the need to ensure independency from crude oil, and the reduction of greenhouse gases.

• Car manufacturers prefer long-term testing rather than immediate start of mass production.

• Most reports estimate the number of eco cars in 2020 in a range of 5 to 7 million.

• Battery development is still in progress, especially for pure electric vehicles and requires modified high sophisticated products.

• Recycling will play a more and more important role.

Market for Eco Cars should develop steadily

• Most reports estimate the number of eco cars in 2020 in a range of 5 to 7 million

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Lithium Carbonate Equivalent (LCE) DemandCar Type All Electric Vehicle Plug-in Hybrid Mild Hybrid

(EV) (PHEV) (HEV)

Approx. Battery Capacity 25 kWh 16 kWh 1 kWh

Lithium Demand (LCE) 22 kg 15 kg 2 kg(Approximate)

Addition of 1 million all electric cars will add 22,000 tons more LCE demand

10 % electrification (7 million cars) would require about 120,000 – 150,000 mt more by 2020

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Glass & Ceramics

Lubricating Greases

Other Applications

Portable Batteries

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

2010 2015 2020 2025 2030

Lithium Forecast - Market Penetration Scenarios(Basis: Six Different Market Studies)

ts LCE

LCE demand without

electromobility

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Glass & Ceramics

Lubricating Greases

Other Applications

Portable Batteries

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

2010 2015 2020 2025 2030

Lithium Forecast - Market Penetration Scenarios(Basis: Six Different Market Studies)

HEV + PHEV + EV(low scenario)

ts LCE

LCE demand without

electromobility

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Glass & Ceramics

Lubricating Greases

Other Applications

Portable Batteries

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

2010 2015 2020 2025 2030

Lithium Forecast - Market Penetration Scenarios(Basis: Six Different Market Studies)

HEV + PHEV + EV(high scenario)

HEV + PHEV + EV(low scenario)

ts LCE

LCE demand without

electromobility

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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LithiumWorldwide Resources

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Worldwide Lithium Resources• Current estimates of worldwide Lithium resources total

approx. 30,000,000 tons Lithium. or 160,000,000 tons Lithium carbonate)*

• Reserves in active or proposed operations total 14,000,000 tons.(or 74,000,000 tons Lithium Carbonate)*

• Current worldwide demand is approx. 23,000 tons Lithium. (or 122,000 tons Lithium carbonate)*

Main sources are:• Brines from Salars• Ore (Spodumene, Hectorite, Jadarite)• Geothermal- and Oilfield Brines

There is enough Lithium

• All existing producers have announced significant capacity increase over the next years

• In total there are more than 50 active exploration projects worldwide covering all three main sources.

• * Source: Roskill, The economics of Lithium, 11th edition, 2009

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Lithium Availability WallMap Gerry M Clarke, Peter W Harben

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Critical Raw Materials for the EU

Source: Critical Raw Materials for the EU, European Commission Enterprise and Industry, June 2010

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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LithiumProduction

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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NaCl + CaSO4 * H2OHALITE

NaCl + KClSYLVINITE

MgCl2 * KCl * 6H2OCARNALLITEMgCl2 * 6H2OBISCHOFITE

MgCl2* LiCl *7H2OLi CARNALLITE

Natural brines fromEl Salar ~ 0,16% Li

END BRINE 6.0% Li

Further Purification, Processing, Crystallization

Li2CO3

LiCl

9 x 4 km dimension

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Chemetall Lithium Production Potential

2008 2010 2015 2020Lithium Carbonate

> 27,000 t > 33,000 t > 40,000 t > 50,000 t

Lithium Hydroxide

> 4,000 t > 5,000 t > 10,000 t > 15,000 t

2002 2005 2006 2008

Chemetall has steadily increased production in the past and expects to continue to do so in the future to meet market needs.

Expansion plans based on current market estimates(Salar Atacama; Chile, Silver Peak, USA; Langelsheim Plant,Germany)

2010

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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• Recycling of production residues– From internal

processes– From customer’s

processes

Lithium Products Portfolio

Chemetall – Core Competencies

• Solar pond technology• Salt purification• Crystallization• Production of

High Purity Li salts

Brine and salt processing

OrganometallicsLithium Metal

Closed cycles of materials

• Casting of Lithium metal• Semi-finished metal product

• Large scale production of air and water sensitive materials

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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LithiumReycling Lithium from Battery Materials

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The Importance of Recycling

• Environmental Issues• Extended Producer Responsibility• Regulation• Resources Preservation / Sustainability• Geostrategical Issues• Consumer Acceptance / Image

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Battery Recycling

Recent Status:

- Shredding of small Batteries- Pyrotechnical Reprocessing- Recycling of Co, Ni

Recent Status:

No viable economical andecological Recycling Systemfor large Batteries

No Lithium Recycling Lithium Recycling Mandatory

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Lith Rec

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0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

2010 2015 2020 2025 2030

t LCE

HEV + PHEV + EVRecycled

Recycling Potential (mean scenario) and Timing

Battery Life

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.

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Chemetall as the leading producer of lithium compounds is committed to expand capacities and to develop tailor-made products in order to satisfy its customer‘s demands.

© 2011 CHEMETALL GMBH - This document and all information contained herein is the proprietary information of CHEMETALL GMBH. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of CHEMETALL GMBH. This document and its content shall not be used for any purpose other than that for which it is supplied.