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2. Next Generation
Battery
2 - 3 September
Hyatt On The Bund, Shanghai
Achieving Optimum Cost / Watt-Hour Performance
Safety And Cycle Life Of Intelligent Packs
In Electric Vehicles And Mass Transport

3. CONFERENCE DAY ONE
2 September 2009

5. The Future Supply and Price of
Lithium to the Li-ion Battery Market
David Miller
GM Strategic Development
Disclaimer
To the extent permitted by law, none of Talison, any of its related
bodies corporate, or any of their representatives make any
representation or warranty, express or implied, as to the accuracy,
reliability or completeness of the information contained in this
Presentation and none of those parties have or assume any
obligation to provide any additional information or to update this
Presentation.
This Presentation contains statements which are in the nature of
forward-looking statements. To the extent permitted by law, no
representation or warranty is given, and nothing in this
Presentation or any other information made available by Talison or
any other party should be relied upon as a promise or
representation as to the future condition of the Talison business or
operations.

6. Lithium Battery Supply Chain
Automobile Manufacturers
Battery Assemblers
Cathode Manufacturers Electrolyte Producers
High Purity Converters
Lithium Chemical Converters
Lithium Mineral Producers
Lithium Brine Producers
Topics
Talison Minerals’ role in the lithium supply chain
Current and potential sources of lithium
To what extent will lithium supply meet future demand
Lithium price analysis
Factor effecting future investments in lithium production

7. Talison Minerals
World’s largest lithium
minerals resource
World’s largest producer of
lithium minerals
Largest supplier of lithium
products to the non-chemical
market
One of the largest suppliers of primary feedstock to the lithium
chemical market
Unique understanding of the whole lithium primary market
Lithium Supply Overview
Total production in 2008 - 120,000t LCE (22,500t Li)
Sourced from lithium rich brine lakes and lithium mineral deposits
Highly geographically concentrated

8. Lithium Brine Production
Silver Peak
Qinghai CITIC
Zhabuye
SQM
SCL
FMC
Lithium Brine Production (2008) – 75,000t LCE
Lithium Brines Production
Qinghai CITIC
Zhabuye

9. Lithium Minerals Production
Kokotay
Bernic Lake
Jinchuan
Maerkang
Ningdu
China Other
Portugal/Spain Bikita
Brazil
Spodumene
Greenbushes
Petalite
Lepidolite
Lithium Minerals Production (2008) – 370,000t Mineral Products
Lithium Minerals Production
Open Pit - Greenbushes
Underground - China

10. Lithium Minerals Production
Greenbushes
China
Projects
Keliber
Western Lithium Quebec Lithium
DXC Separation Rapids
Jadar
Dexin
Jiajika
Mibra
Salar de Uyuni
Olaroz
Rincon
Minerals
Galaxy
Brines
Hectorite
Jadarite

11. Lithium Consumption
LITHIUM CONSUMPTION (2008) – 118,000t LCE
New and Growing Applications
Major secondary battery manufacturers all expanding
productions
Development of new markets
– Higher voltage hand held power tools
– Electric bikes
– Large terrestrial power storage facilities
Credit: Milwaukee Credit: Schwinn

12. Lithium Carbonate Demand
LITHIUM MARKET DEMAND (EXCLUDING EV MARKET)
kt Li2CO3
Factor Affecting Lithium Demand
for Electric Vehicles
Commitment by automobile manufacturers to mass produce
lithium powered electric vehicles
Growth in global motor vehicle sales
Lithium powered electric vehicle growth as a percentage of total
sales
Split of electric vehicle types:
– Battery powered electric vehicles
– Plug-in Hybrid
– Hybrid electric vehicle
– Mild hybrid
Battery technology (intensity of lithium use per installed kWhr)

13. Lithium Carbonate Demand
LITHIUM MARKET DEMAND (INCLUDING EV MARKET)
kt Li2CO3
World Resources
eLi2CO3
Broad based resources: 210Mt
Current producer resources: 80Mt
Developer resources: 70Mt
Resources available from current producers alone to last well over
100 years
Source: LAWM

14. Current Producer Capacities
Current producers’ capacity estimated at about 150,000t LCE
Capacity to bring on an additional 100,000t LCE in the short to
medium term
Current producers can meet any demand scenario in the short to
medium term
Current producers have the ability to meet longer term
requirements for most demand scenarios with further incremental
expansions or the development of new projects
Historical Prices
Historically the primary lithium chemical market was dominated
by FMC Lithium and Foote Minerals
Sharp drop in prices when SQM entered the market in 1996
Prices gradually rose in the early part of this decade as
demand increased
Delays in expansions at the South American brines operations
in late 2006 resulted in lithium chemical prices doubling by mid
2007 to current levels

15. Lithium Battery Supply Chain
Automobile Manufacturers
Battery Assemblers
Cathode Manufacturers Electrolyte Producers
High Purity Converters
Lithium Chemical Converters
Lithium Mineral Producers Lithium Brine Producers
Price Outlook
Realization that the market can absorb higher lithium chemical
prices
Prices have remained relatively stable for the last two years
Producers prepared to sacrifice volume rather than reduce
price
Dynamics which will affect future pricing:
– Lithium brine producers remain price setters in the near term
– Supply shortage if either demand accelerates or expansions are
delayed
– Higher prices will encourage new entrants
– Supply lock-up

16. Summary
Strong growth in demand to continue for primary lithium
feedstock
While there are sufficient lithium resources to meet future
demand, communication along the supply chain is critical
In the short to medium term supply will continue to be dominated
by current producers
Higher prices required for most new projects to be economic
Future pricing will be effected by:
– Brines producers being price makers in the near term
– Any supply shortage
– Lock up of supply
The Future Supply and Price of
Lithium to the Li-ion Battery Market
David Miller
GM Strategic Development

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