Fuelling the European
energy transition

Lithium from Europe, for Europe
Fuelling the European
energy transition

Lithium from Europe, for Europe

Novo Lítio aims to be a sustainable European lithium carbonate/lithium hydroxide supplier, from its Northern Portugal operations, to the burgeoning lithium ion battery production market in Europe. It also aims to supply ultra-low impurity, technical grade petalite concentrate to the glass/ceramics market.

Novo Lítio Ltd is an Australian ASX and Frankfurt-listed Company which aims to become a sustainable European lithium carbonate/lithium hydroxide supplier, from its Northern Portugal operations, to the burgeoning lithium-ion battery production market in Europe. Europe is leading the world in uptake of electric vehicles (EVs) using lithium-ion batteries; this, coupled with the increasing demand for home and commercial energy storage, is driving the growth in lithium-ion battery demand. The domestic manufacturing of lithium-ion batteries, cells and associated cathode/electrolyte is critical for Europe’s future economy and security, as is the domestic production of the raw materials necessary for this manufacturing, especially lithium. Sourcing lithium domestically will also significantly reduce the carbon footprint of the battery supply chain.

The Company has a significant cash position from the sale of its Australian lithium discovery, and is fully funded to the completion of its Definitive Feasibility Study at Sepeda.

A demonstration plant will commence in September 2017 to produce technical grade lithium concentrate, and later battery-grade lithium carbonate, with commercially-proven “off-the-shelf” technologies.

The Company aims to be producing technical grade concentrate by early-2019, which will help to fund lithium carbonate/lithium hydroxide plant construction, with first production of lithium carbonate planned for early 2020. The latter is aimed to coincide with the start of cathode material production in Europe by other companies.

The team at Novo Lítio are highly motivated to source the raw materials required for the global transition to a low-emissions, renewable energy-powered future.

Strategy

Metal critical for the current global paradigm-shift to electrification of transport, stationary storage and renewable energy. Novo Lítio aims to provide Europe with supply security and a lower carbon footprint, in the growing battery supply chain.
Lithium in the form of petalite and spodumene – lithium aluminium silicates which can be easily processed using off-the-shelf, commercially proven technologies to produce lithium carbonate. This reduces the development risk relative to unconventional sources of lithium, such as micas or clays. Petalite also has the added benefit of being very low in impurities such as iron, making it also suitable for lucrative, technical grade concentrate markets.
Novo Lítio’s flagship project is Sepeda, located in Northern Portugal, which it is advancing towards production. Novo Lítio also has an exploration pipeline of lithium prospects in Sweden.

Company Summary

Aim to become a sustainable European supplier of premium, ultra-low impurity technical grade petalite concentrate and battery-grade lithium carbonate/hydroxide
Current cash position of AUD$16.0M, with a further AUD$3.0M due from sale of WA assets to Pilbara Minerals - Fully funded to completion of Sepeda DFS
Largest lithium pegmatite JORC Mineral Resource in Europe, rapidly advancing to development
Simple metallurgy, ultra-low impurity mineral concentrate produced with virtually no iron or micas
Sepeda phase three drilling ongoing, phase four fast-tracked and is running concurrently
Demonstration plant petalite concentrate product output scheduled for Q3 2017
Quality pipeline of lithium exploration projects in Portugal and Sweden. Exceptional track record of lithium discoveries and resource delineations to date
Aim to be producing premium petalite concentrate by early to mid-2019 and battery-grade lithium chemical products by early to mid-2020

The Energy Transition is Upon Us…

Two main themes are defining energy & transportation in this century:

Decline of the traditional energy production & distribution company caused by mass uptake of renewables - linked to large-scale lithium-ion battery storage for smooth supply.
Mass uptake of electric vehicle (EVs), powered by lithium-ion batteries - approaching parity with fossil fuel engine costs. $190/kwh production costs have now been claimed, an unprecedented drop from $1,000/kwh in 2010. This is now reaching a tipping point where affordable (350km, are becoming widely available.

…with Lithium the Essential Ingredient…

The Tesla Model S, with its 70kWh lithium-ion battery, uses 63kg of LCE (12kg of Li) - 14% percent by weight, or 10,000 times that of a cell phone
For every 1% of electric vehicle penetration of the global passenger car market, add 50-70,000t of LCE demand, or around 30% of the total current lithium market
Current demand forecasts for lithium carbonate equivalent (LCE) range from 550 to 600ktpa in 2025, up from 200ktpa in 2016, mostly driven by increase in lithium-ion battery uptakes for storage and EVs
Total, an oil giant, predicts 30% penetration of car market by EVs by 2030, for 20 million sales
This would require 1-1,200,000t LCE, or 6x current global production
This does not take into account lithium-ion batteries for:

home or grid stationary storage, and
E-Bikes, buses, and other forms of transportation

All of which are seeing rapidly increasing rates of growth

…Underpinning Strong Pricing Forecast for Lithium

Surge in uptake of lithium-ion batteries in EVs, home/grid storage has caused strong lithium price gains in the past year
Morningstar predict 100kt LCE shortfall in supply by 2025
Supply/demand tightness underpins strong price support forecasts

Europe is Leading the Way…

Renault currently largest seller of EVs in Europe, on track for 40K units for 2017 with 9,220 sold in Q11
Volkswagen group – targeting 25% of sales to be electric by 2025
Daimler/Mercedes – 10 new all-electric models, also making batteries for mass home/commercial energy storage
BMW, Land Rover, Jaguar etc. – multiple all-new, all-electric models
Parliamentary motions to ban sales of new petrol and diesel cars by 2025 in Norway and Netherlands and by 2030 in Germany
Germany’s largest utility company E.ON has spun out its fossil fuel business, with the new E.ON focused on the “new energy world” of renewables
24% of all vehicles sales in Norway were electric in 2016
Multiple operational and planned battery factories are springing up across Europe

…But Supply Security is an Issue

Europe currently consumes around a quarter of the world’s lithium, but produces next to nothing
The Lithium market is much more susceptible to supply disruption than OPEC:

OPEC – 13 countries controlling 40% of world oil production
Lithium market – 4 companies controlling 90% of lithium production, with four Asian companies controlling 80% of Li-ion cell production

European battery producers need a secure, ethical and low-carbon footprint source of lithium. Novo Lítio is well placed to supply this surge in demand

The Opportunity

The Novo Lítio Opportunity

Strategically placed to take advantage of the growing surge in European lithium demand
Quality lithium development project at Sepeda, Portugal
Strong cash position allowing rapid advancement of project
Dominant land position in well-known petalite/spodumene mineralised regions of Portugal/Sweden – exploration upside, management track record of lithium discoveries and resource definitions
Highly experienced management team with a track record of delivering successful outcomes

Novo Lítio Projects & Planned Li-Ion Battery Factories in Europe

Fuelling the European
energy transition

Fuelling the European
energy transition

Lithium from Europe, for Europe

Strategy