Lithium Growth in the Energy Storage Market

Lithium Growth in the Energy Storage Market

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Description: These slides and the accompanying presentation contain “forward-looking statements” that represent management’s best judgment as of the date hereof based on information currently available. Actual results of the Company may differ materially from those contained in the forward-looking statements. Additional information concerning factors that may cause results to differ materially from those in the forward-looking statements is contained in the Company’s periodic reports filed under the Securities Exchange Act of 1934, as amended.

 
Author: Soumitra Purkayastha  | Visits: 242 | Page Views: 406
Domain:  Green Tech Category: Battery & Fuel Cell 
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Contents:
Lithium Growth in the Energy
Storage Market
Soumitra Purkayastha
FMC Corporation
Lithium Division

Lithium Growth in the Energy Storage Market
Soumitra Purkayastha
Director, Resource Development
FMC Lithium

2

Disclaimer
Safe Harbor Statement under the
Private Securities Litigation Reform Act of 1995
These slides and the accompanying presentation contain “forwardlooking statements” that represent management’s best judgment as of
the date hereof based on information currently available. Actual results
of the Company may differ materially from those contained in the
forward-looking statements.
Additional information concerning factors that may cause results to
differ materially from those in the forward-looking statements is
contained in the Company’s periodic reports filed under the Securities
Exchange Act of 1934, as amended.
The Company undertakes no obligation to update or revise these
forward-looking statements to reflect new events or uncertainties.
Non-GAAP Financial Terms
These slides contain certain “non-GAAP financial terms” which are
defined in the appendix. In addition, we have provided reconciliations of
non-GAAP terms to the closest GAAP term in the appendix.

3

FMC Corporation

LTM ending December 31, 2010 ($ millions)
FMC Corporation

Revenue:

EBITDA:

Revenue:
EBITDA:
Margin*:

$1,055

$670

Margin*:

Industrial Chemicals

$3,116

21.5%

Specialty Chemicals
Revenue:

$825

Agricultural Products
Revenue:

$1,242

$196

EBITDA:

$218

EBITDA:

$331

18.5%

Margin*:

26.4%

Margin*:

26.6%

*EBITDA margin

4

FMC Lithium Summary





Industry Innovator:
— Unique brine process technology
— Proprietary cathode development
Market leader:
— #1 supplier: LiOH, LiCl, specialty salts
— Leader in downstream metals, organics



Salar del Hombre Muerto

Integrated operational footprint:
— 5 production sites worldwide
— R&D presence in U.S., India, China
— One of world’s top lithium resources



FMC Lithium Global Sites

#2 producer in world (revenue basis)

Commitment to the industry:
— First carbonate supply to Li Ion batteries
— Argentine expansion(s) underway

5

FMC Market Share and End Markets
Global Market Share (US$)
Other
18%

FMC Lithium Markets (US$)

Synthesis
18%

Energy
26%

Rockwood
37%

SQM
18%
FMC
27%

Polymer
28%

Industrial
28%

 FMC is the world’s second largest supplier of lithium chemicals
 FMC markets a broad range of products that serve diverse and
growing markets – led by strong growth in energy storage

6

Global Lithium Demand

Overall ~10% AAGR
Transportation:
>30% CAGR
New applications:
~25% CAGR
(2015-2020)
Consumer
electronics: ~10%
CAGR

 Conventional market will continue to grow steadily at ~3% AAGR
 Consumer electronics and transportation will grow annually at 10% and 35%, respectively
 Transportation segment includes a broad class of vehicle types beyond just passenger cars

Sources: SignumBOX, IDTechEx

7

8

Electric Transportation

Electric TwoWheeled
Vehicles
Light Duty
Vehicles

Electric
Buses
Sources: SignumBOX, IDTechEx, Boston Power

Typical Lithium Content:
•E-bikes: 0.4 kWh battery; 0.3 kg LCE/vehicle
•E-scooters: 0.1 kWh battery; 0.07 kg LCE/vehicle
•E-motorcycles: 0.7 kWh battery; 0.5 kg LCE/vehicle
Penetration Rates and Total Fleet Size:
• 2015: Overall 50%; 15 million vehicles
•2020: Overall 60%; 35 million vehicles

Typical Lithium Content:
•EV: 0.6 kg/kWh; 20~25 kWh battery; ~15 kg LCE/vehicle
•HEV: 0.6 kg/kWh; 3~4 kWh battery; ~2 kg LCE/vehicle
•PHEV: 0.6 kg/kWh; 16~20 kWh battery; ~9 kg LCE/vehicle
Penetration Rates and Total Fleet Size:
•2015: EV: 0.65%, HEV: 0.55%, PHEV: 0.3%; 1.3M vehicles
•2020: EV: 2%, HEV: 4%, PHEV: 1%; 7 million vehicles

Typical Lithium Content:
•E-bus: 1 kg/kWh; 180~200 kWh battery; ~200 kg LCE/vehicle
•Hybrid bus: 1 kg/kWh; 20~25 kWh battery; ~20 kg LCE/vehicle
Penetration Rates and Total Fleet Size:
•2015: E-bus: 3%; Hybrid bus: 5%; 40,000 vehicles
•2020: E-bus: 7%; Hybrid bus: 13%; 150,000 vehicles

9

Grid, Solar, and Nuclear Applications

Grid Storage

Application: Li-ion batteries are being used for:
• Storing power generated from intermittent sources
• Stabilizing the grid by acting as a buffer for peak demand
• Enhancing efficiency of assets on the grid, thus improving power
generation and supply economics
•Total of >50 MW ongoing projects in the US and South America

Solar
Thermal

Application: Lithium salts used as working fluid in utility-scale
concentrated solar power (CSP) plants:
• Maximize heat transfer fluid performance while minimizing
material cost
• Provide chemical and thermal stability
• Overcome the drawbacks of the currently used organic compounds
•Globally, CSP is estimated to grow from 1.5 GW in 2010 to 5.5 GW
in 2015 and 25 GW in 2020

Nuclear

Application: The Japanese RAPID fast reactor design concept uses
lithium coolant as a reactivity control mechanism :
• Simplify the operation of a nuclear plant
• Help commercialize micro-nuclear power plants

Sources: Sandia National Laboratory, CSP Today, Altran, Greenpeace, IEA

10

Lithium Demand and Supply

 Present producers have the most favorable economics and assets to meet industry
demands today and in the future
 Currently producing assets have the reserve capacity to meet future market demands

11

Relative Cash Costs by Lithium Source
5

Spot Price for Li2CO3

4
US$/Kg

3

*

2
1
0
Existing Brine

New Brine

Mineral-based

Estimates include a range in costs depending on lithium deposit quality,
logistics, energy costs and other factors
Mineral based conversion including spodumene, petalites and clays
have higher energy and processing costs than brine sources
Newer brine sources vary widely in quality, lack economies of scale and
do not have experienced lithium industry developers/operators
* Shaded portions represent a range in costs

12

Capital Efficiency

*

 Development costs high for new projects due to remote locations and infrastructure required
 Current producers can expand with very low capital requirements due to existing infrastructure
and economies of scale
 Economics for new projects often based on unrealistic pricing models. Payback periods
questionable
* Shaded portions represent a range in costs
Source: First Analysis

13

FMC’s Commitment to the Industry
 2011: Expansion of Li salt production
 30% increase over current levels
 Actively working on second phase capacity addition
 2008: Opened Center of Lithium Energy Advanced Research (CLEAR) Lab
 Constructed laminated Li-ion cells; trained industry and academia in Li safe handling
 Developing customized solutions for major energy storage device manufacturers
 2004: Developed revolutionary Anode lithiation technology (SLMP)
 Stabilized Lithium Metal Powder (SLMP)
 Improves energy density of Li-ion cells, increases calendar life, and reduces cost
 1995: Entered Cathode market as advanced materials supplier
 Developed significant intellectual property for LiCoO2 and LiNiO2 families.
 Licensed LiCoO2 technology to Umicore in 2011
 Developed unique composition enabling high rate capability and low impedance build
 1991-1992: Entered market as Li salts supplier
 First to supply carbonate to SONY for their lithium cobaltate production
 Became a leading supplier of hydroxide to battery market

14

Addressing New Product Requirements
Li Carbonate

 Industrial Grade
 Technical Grade
 Micronized Technical Grade
 Battery Grade
 Micronized Battery Grade

Li Hydroxide

 Technical Grade
 Battery Grade
 Electrochemical Grade

Li metal
Stabilized Lithium Metal Powder
(SLMP®)

15

Electrodes for Li-based Storage
Batteries
Technology Update

Source: US Dept of Energy

Challenges from an EV perspective
 LiCobalt Oxide system
 Unsuitable for EV because of safety
 LiNickelate system
 Poorer safety and cycle life
 LiSpinel system
 Relatively low energy and inadequate life
 LiIron Phosphate system
 Relatively low energy
 LiTitanate system
 Low cell voltage – needs high energy cathode to compensate

20

SLMP

®

- A Revolutionary Technology from
FMC

FMC`s Stabilized Lithium Metal Powder (SLMP®) Technology addresses a
number of challenges faced by Li-Ion Storage Battery Manufacturers