LITIO 2019

Lithium Deposits: Pegmatite and Sedimentary

Priscila Barrera - April 30th, 2019

pegmatite lithium

Lithium brine deposits have been generating interest, but what about pegmatite lithium deposits
and sedimentary lithium deposits? Learn about them here.

As lithium demand continues to rise, it is useful for investors to gain an understanding of the
different lithium deposit types at play.

Lithium is mined from three different deposit types: lithium brine deposits, pegmatite lithium
deposits and sedimentary lithium deposits. Each comes with different project requirements,
extraction methods and processing times.

Brine deposits, for example, are the most common, accounting for 66 percent of the world’s
lithium resources, but may require longer processing periods. The majority of global lithium
production comes from continental lithium brine deposits.

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The best example of a continental lithium brine deposit is the 3,000 square kilometer Salar de
Atacama in Chile, home to one of the world’s richest deposits of high-grade lithium. You can read
more about this deposit type by clicking here.

Pegmatite lithium deposits and sedimentary lithium deposits are also important to know about,
and the article below outlines their key characteristics. Scroll on to learn more about their
importance today.
Pegmatite lithium deposits

Pegmatite is a coarse-grained intrusive igneous rock formed from crystallized magma below the
Earth’s crust. Pegmatite lithium deposits, also known as hard rock lithium deposits, can contain
extractable amounts of a number of elements, including lithium, tin, tantalum and niobium.

Lithium in pegmatites is most commonly found in the mineral spodumene, but also may be
present in other minerals such as petalite, lepidolite, amblygonite and eucryptite.

Australia, the US, Canada, Ireland, Finland and the Democratic Republic of Congo are known to
host pegmatite lithium deposits. The top-producing spodumene pegmatite operation, known as
the Greenbushes mine, is located in Australia, and it is owned by Talison Lithium. Talison is
controlled 49 percent by China’s Tianqi Lithium (SZSE:002466) and 51 percent by Albemarle
(NYSE:ALB).

Also in Australia is mining company Galaxy Resources’ (ASX:GXY) Mount Cattlin spodumene mine,
an open pit mine that rests on a flat-lying pegmatite ore body. The mine is currently at full
production levels. In addition, Galaxy holds the James Bay lithium pegmatite project in Quebec,
with indicated lithium resources of 40.3 million tonnes grading at 1.4 percent lithium oxide,
according to a resource estimate.

Hard rock ore containing lithium is extracted at open pit or underground mines using conventional
mining techniques. The ore is then processed and concentrated using a variety of methods prior to
direct use or further processing into lithium compounds.

Extracting pegmatite lithium from hard rock ore is expensive, meaning that such deposits are
arguably at a disadvantage compared to brine deposits. However, pegmatite lithium deposits have
considerably higher lithium concentrations than brines, so deposits with extremely high lithium
values may still be economically viable. The production of other metals, such as tin and tantalum,
can also help offset costs.

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It is worth noting that hard rock deposits are not subject to the sometimes 12 month long
processing times currently seen at some brine deposits.

Sedimentary lithium deposits

Sedimentary rock deposits account for about 8 percent of known global lithium resources, and are
found in clay deposits and lacustrine evaporites.

Clay deposits — In clay deposits, lithium is found in the mineral smectite. The most common type
of smectite is hectorite, which is rich in both magnesium and lithium. It gets its name from a
deposit containing 0.7 percent lithium found in Hector, California.

Many companies are in the research and development phases for their clay deposits, but no
companies currently produce lithium from them.

Lacustrine evaporites — The most commonly known form of lithium-containing lacustrine deposit
is found in the Jadar Valley in Serbia, for which the lithium- and boron-bearing mineral jadarite is
named.

The Jadar deposit, owned by Rio Tinto (NYSE:RIO,LSE:RIO,ASX:RIO), reportedly contains more than
200 million tonnes of lithium. The company claims it is one of the largest lithium deposits
worldwide.

Rio Tinto signed a memorandum of understanding with the government of Serbia to fast track the
development of the deposit. The project is currently in the prefeasibility stage and could begin
construction in 2023 following a final investment decision from Rio Tinto.

Now that you know more about sedimentary and pegmatite lithium deposits, here are some more
articles to improve your expertise in the space:

5 Basic Lithium Facts

6 Lithium-ion Battery Types

Top Lithium Production by Country

This is an updated version of an article originally published by the Investing News Network in 2012.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company or
commodity mentioned in this article.

5 BASIC LITHIUM FACTS

The lithium market is hot right now. Before you leap in and start investing in this important metal,
learn these five basic lithium facts.

Lithium-ion batteries power everything from cell phones to laptops to electric cars, and demand
for the metal continues to rise.

Companies and investors are continually being drawn in by news of Elon Musk and Tesla’s
(NASDAQ:TSLA) lithium-ion battery gigafactory.

However, Tesla’s gigafactory isn’t the only lithium-ion battery megafactory out there, and there’s
more to lithium and the lithium market than electric vehicle batteries. Investors new to the lithium
space will want to get a handle on a few basic facts about lithium before jumping in.

Here’s a look at five basic lithium facts investors should know.

1. It’s the lightest metal on the periodic table

The first lithium fact that might come as a surprise is that lithium is the lightest metal on the
periodic table. Lithium is almost half as dense as water, and is part of the alkali metals group. The
metal also has a high specific heat, making it useful in the production of heat-resistant glass, while
its electrochemical potential makes it useful in batteries.

2. It can be found in brines, hard rock deposits and clays

Another lithium fact is that the element is found all over the world, in both hard rock deposits and
evaporated brines. The Greenbushes mine in Australia is a key hard rock deposit, while most of
the world’s lithium brine production comes from salars, or salt flats, in Chile and Argentina. Along
with Bolivia, those South American countries make up the prolific Lithium Triangle.
It is worth noting that several companies are also looking to develop clay-based lithium deposits.

3. There are many different types of lithium products

There are various types of lithium products, and many different applications for the mineral. After
lithium is extracted from a deposit, it is often processed into lithium carbonate, lithium hydroxide
or lithium metal. Battery-grade lithium carbonate and lithium hydroxide can be used to make
cathode material for lithium-ion batteries. Most contaminants must be removed in order for
either material to be considered battery grade.

Hydroxide tends to be more expensive, but can produce cathode material more efficiently. It is
also necessary for some types of lithium-ion battery cathodes, such as nickel–cobalt–aluminum
oxide and nickel-manganese-cobalt oxide.

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Meanwhile, lithium metal can be used to produce anode material for high-energy-density
batteries. Lithium metal is produced by the electrolysis of lithium chloride and potassium chloride.
The popularity of lithium metal is increasing due to its use in solid-state batteries, which could
become an alternative to conventional lithium-ion battery technology as the energy storage
revolution continues to unfold.

In addition to battery-grade materials, there is also a market for technical-grade lithium. Technical-
grade lithium products, such as technical-grade lithium concentrate, sell for a cheaper price than
battery-grade products, and are used in applications such as glass and ceramics. Technical-grade
lithium products must have very low concentrations of iron.

4. It’s not just for batteries

While batteries have been getting most of the attention in the lithium space lately — and while
demand for lithium from the battery and energy storage sectors is certainly on the rise — other
sectors continue to account for a healthy proportion of lithium demand.
Citing data from Roskill, a report from Stormcrow Capital notes that, in 2013, rechargeable
batteries made up 29 percent of lithium demand, while the remainder of the market was mostly
made up of various industrial end uses. In 2018, that proportion increased to 56 percent, as per
the US Geological Survey, but sizeable portions of the market were still accounted for by ceramics
and glass (23 percent), lubricating greases (6 percent) and other industrial uses.

Lithium is also used in pharmaceuticals, lubricants and heat-resistant glass.

5. Prices can be hard to find

Last on our lithium facts list is the price challenge. Like most critical metals, lithium is not traded
on any public exchange, and the world’s top lithium producers don’t often give out stats. For a
long time, most of the world’s lithium was produced by an oligopoly of producers often referred to
as the “Big 3,” which included Rockwood Lithium, now owned by Albemarle (NYSE:ALB), Sociedad
Quimica y Minera de Chile (NYSE:SQM) and FMC (NYSE:FMC).

Producers in China have grabbed a larger share of the lithium market in recent years, but the lack
of information on pricing has continued. However, interested investors can look to experts in the
lithium space for market reports and price forecasts.

This is an updated version of an article originally published by the Investing News Network in 2015.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company
mentioned in this article.

Albemarle follows lead with plans for WA lithium plant

Stuart McKinnonThe West Australian

Tuesday, 14 November 2017 7:27PM

US chemicals giant Albemarle will follow the lead of its Chinese joint venture partner in the
Greenbushes lithium mine by building a lithium hydroxide plant in WA, potentially representing a
near $1 billion investment in the State.

The company has applied to the Federal Department of Environment and Energy for permission to
build a one-train plant capable of producing 20,000tpa at Kemerton, near Bunbury.

And Albemarle is already flagging a staged expansion of the facility via an additional four trains for
a potential output of 100,000tpa by 2025.

Albemarle and Tianqi Lithium are joint venture partners in Talison Lithium, the company that
controls the Greenbushes lithium mine in the South West. Talison this year announced a $320
million expansion of the mine to double capacity to 1.34mt of lithium concentrate (spodumene) a
year.

The expansion of Greenbushes, already the biggest hard rock lithium mine in the world, is
complicated by an ongoing legal dispute between Talison and Global Advanced Metals, which
argues the upgrade will effectively waste the mine’s tantalum resource, over which it has rights.

But Tianqi Lithium Australia boss Phil Thick said in September he was confident the dispute would
be resolved and the expansion plans would not be affected.

Tianqi is already spending $860 million to build its own lithium hydroxide plant in Kwinana capable
of producing 48,000tpa.

Albemarle’s submission said its plant would process up to 1mt of spodumene a year from
Greenbushes with the lithium hydroxide product being trucked from Kemerton to Fremantle for
export.

The company wants to begin construction next year with first production scheduled for 2020.

Chile’s SQM is also planning a lithium refinery at either Kwinana, Kemerton or Kalgoorlie as part of
its joint venture arrangement with Kidman Resources over the Mt Holland lithium project near
Southern Cross.
Demand for lithium hydroxide, which is used in lithium-ion batteries, is expected to soar in coming
years as the world switches from petrol-fuelled to electricity-powered vehicles.

6 Lithium-ion Battery Types

Amanda Kay - July 23rd, 2018

lithium-ion battery

There is more than just one kind of lithium-ion battery, and not all are created equal. Here’s a look
at six types of lithium-ion batteries.

Lithium-ion batteries are essential to modern technology, powering smartphones, laptops,

medical devices and even electric vehicles.

Manufacturers commonly use lithium carbonate or lithium hydroxide in these batteries rather
than lithium metal. And of course, although lithium is a key ingredient in lithium-ion batteries,
they also include other metals, such as cobalt, graphite and nickel.

But which lithium-ion battery types are used for which applications? There is more than one type
of lithium-ion battery, and not all are created equal. We’ve outlined six lithium-ion battery
varieties below, as well as their compositions and common uses. Read on to learn more about this
exciting technology.

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1. Lithium cobalt oxide

Also known as lithium cobalate or lithium-ion cobalt batteries, lithium cobalt oxide batteries are
made from lithium carbonate and cobalt. Due to their very high capacity, these batteries are used
for cellphones, laptops and electronic cameras. They have a cobalt oxide cathode and a graphite
carbon anode; during discharge, lithium ions move from anode to cathode, with the flow reversing
on charge.

This type of battery has some drawbacks, including a shorter lifespan and limited specific power.
That means devices that use these batteries require relatively frequent charging — as smartphone
owners can attest. Additionally, Battery University notes that these batteries are not as safe as
other types.

2. Lithium manganese oxide

Lithium manganese oxide batteries are also commonly called lithium manganate or lithium-ion
manganese batteries. They may also be referred to as li-manganese or spinel. The technology for
this type of battery was discovered in the 1980s, with the first publication on the subject
appearing in the Materials Research Bulletin in 1983. The first commercial lithium-ion cell made
with lithium manganese oxide as a cathode material was produced in 1996 by Moli Energy.

Lithium manganese oxide batteries are notable for their high thermal stability, and are also safer
than other lithium-ion battery types. For this reason, they are often used in medical equipment
and devices, but they may also be used in power tools, electric bikes and more. It is also possible
to use lithium manganese oxide batteries to power laptops and electric powertrain cars.

3. Lithium iron phosphate

Lithium iron phosphate batteries, also known as li-phosphate batteries, use phosphate as a
cathode. They benefit from low resistance properties, which enhance their safety and thermal
stability.

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Other benefits include durability and a long lifecycle — fully charged batteries can be stored with
little change to the total lifespan of the battery’s charge. Li-phosphate batteries are often the most
cost-effective option as well, when their long lifespan is taken into consideration. However, the
lower voltage of the li-phosphate battery means that it has less energy than other types of lithium
batteries.

Accordingly, these batteries are often used in electric motorcycles as well as other applications
that need a long lifecycle and significant safety. Electric vehicles often use these batteries as well.

4. Lithium nickel manganese cobalt oxide

Also known as lithium manganese cobalt oxide or NMC batteries, lithium nickel manganese cobalt
oxide batteries are made of several materials common in lithium-ion battery types. They include a
cathode made of a combination of nickel, manganese and cobalt.

Like other lithium-ion battery varieties, NMC batteries can have either a high specific energy or a
high specific power. They cannot, however, have both properties. This battery type is most
common in power tools and in powertrains for vehicles.

The cathode combination ratio is usually 60 percent nickel, 20 percent manganese and 20 percent
cobalt. This means that the raw material cost is lower than it is for other lithium-ion battery
options, as cobalt on its own can be quite expensive. These batteries may come down in price
further in the future, as some battery makers are planning to switch to a higher percentage of
nickel so that they can use less cobalt. This battery type is also commonly preferred for electric
vehicles due to its very low self-heating rate.

5. Lithium nickel cobalt aluminum oxide

Lithium nickel cobalt aluminum oxide batteries are also called NCA batteries, and are becoming
increasingly important in electric powertrains and in grid storage. NCA batteries are not common
in the consumer industry, but are promising for the automotive industry. NCA batteries provide a
high-energy option with a good lifespan, but they are not as safe as they could be and are quite
costly. The Boston Consulting Group notes that NCA batteries must be accompanied in cars by
safety measures that monitor their performance and behavior to keep drivers secure.

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The Argonne National Laboratory has conducted research into the potential of NCA batteries and
the issues associated with them. Given the consistent use of NCA batteries in electric vehicles, it is
possible that demand for these batteries will rise as electric vehicles become more common.

6. Lithium titanate

Finally, lithium titanate, also known as li-titanate, is a class of battery that allows for ever-
increasing applications. The main advantage of the li-titanate battery is its remarkably fast
recharge time, thanks to its advanced nanotechnology, writes Battery Space.

Currently, manufacturers of electric vehicles and bikes use li-titanate batteries, and there is
potential for this type of battery to be used in electric buses for public transportation. However,
these batteries have lower inherent voltage, or lower energy density, than other lithium-ion
battery varieties, which can present issues with powering vehicles efficiently.

Still, the density of lithium titanate batteries is still higher than other non-lithium-ion batteries,
which is a plus. Applications for these batteries can include military and aerospace uses, and they
may also be used for storing wind and solar energy and creating smart grids. Furthermore, Battery
Space suggests these batteries could also be used in system-critical backups for power systems.

Which lithium-ion battery is best?

Lithium-ion batteries come in a range of types and have a variety of uses. That means some
lithium-ion batteries are better suited to particular applications than others are. The most
important thing is to choose the battery best suited the task at hand.

It’s also worth noting that the lithium-ion battery industry is constantly changing. Companies and
scientists around the world are creating new batteries to either work alongside lithium-ion
batteries or supplant them. As these new batteries develop it will be important to watch which
come to the fore.

This is an updated version of an article first published by the Investing News Network in 2014.
Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I Amanda Kay, currently hold no direct investment interest in any company
mentioned in this article.

Top Lithium Production by Country

Priscila Barrera - April 17th, 2019

lithium production by country

Where was the highest lithium production by country in 2018? Australia took the top spot, and it
was followed by Chile and China.

Interest in lithium continues to grow due to the metal’s role in the lithium-ion batteries that
power electric cars.

In total, about 56 percent of lithium produced goes toward battery production, but other
industries also consume the metal. For example, 23 percent is used in ceramics and glass, while 6
percent goes to lubricating greases.

According to the US Geological Survey, lithium consumption for batteries has increased
significantly in recent years due to the use of rechargeable lithium batteries in the growing market
for portable electronic devices, as well as in electric tools, electric vehicles and grid storage
applications.

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As demand for the metal continues to rise, which countries will provide the lithium the world
requires? The latest data from the US Geological Survey shows that the world’s top lithium
producers are doing their best to meet rising demand from energy storage and electric vehicles —
worldwide lithium supply rose roughly 23 percent from 2017 to 2018, coming in at 85,000 metric
tons (MT) of lithium content last year, not including US production.

Read on for a brief overview of the nine countries that produced the most lithium in 2018. If the
electric vehicle market continues to grow, and if lithium-ion batteries continue their reign as the
top batteries for electric vehicles, it’s likely that they will produce even more of the metal in years
to come.

1. Australia

Mine production: 51,000 MT

Kicking off our lithium production by country list is Australia. It produced 51,000 metric tons of
lithium content last year, up an impressive 11,000 metric tons from the year before. The over 21
percent increase has been attributed to two new spodumene operations that ramped up
production in 2017, along with five additional spodumene operations that ramped up output in
2018.

Australia hosts the Greenbushes lithium asset, which is operated by Talison Lithium, a subsidiary
jointly owned by miners Tianqi Lithium (SZSE:002466) and Albemarle (NYSE:ALB). Greenbushes is
the longest continuously operating mining area in Western Australia, having been in operation for
over 25 years.

Australia also holds over 2.7 million metric tons of identified lithium reserves, according to the US
Geological Survey, which puts it just behind Chile. It is worth noting that most of the country’s
lithium supply is exported to China as spodumene.

2. Chile

Mine production: 16,000 MT

Chile was another of the world’s top producers in 2018, with its production increasing from 14,200
metric tons of lithium content in 2017 to 16,000 metric tons last year. Unlike Australia, where
lithium is extracted from hard rock mines, Chile’s lithium is found in lithium brine deposits.

The Salar de Atacama salt flat in Chile generates roughly half the revenue for SQM (NYSE:SQM), a
top lithium producer. SQM finally reached a deal over disputed royalties with Chilean
development agency Corfo in January 2018, which expanded its production capacity. According to
the company’s expectations, lithium demand will increase 20 percent in 2019.

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3. China

Mine production: 8,000 MT

China came third for lithium production in 2018, beating Argentina by 1,400 metric tons. The Asian
country saw its lithium supply grow to 8,000 metric tons last year from just 6,800 in 2018.

While lithium production in China is comparatively low, it is the largest consumer of lithium due to
its electronics manufacturing and electric vehicle industries. It also produces nearly two-thirds of
the world’s lithium-ion batteries and controls most of the world’s lithium processing facilities,
according to data from Benchmark Mineral Intelligence.

China now gets most of its lithium from Australia, but is looking to expand its capacity in the
future.

4. Argentina

Mine production: 6,200 MT

Lithium producer Argentina increased its output by 500 metric tons in 2018, achieving production
of 6,200 metric tons.

It’s well known that Bolivia, Argentina and Chile make up the Lithium Triangle. Argentina’s Salar
del Hombre Muerto district hosts significant lithium brines, and its reserves are enough for at least
75 years.

At present, lithium mining in the country shows no signs of slowing down. According to an
Economist Intelligence Unit report, two mines are currently in production and over 60 projects are
in development, with five close to coming onstream.

5. Zimbabwe

Mine production: 1,600 MT

For the first time in five years, Zimbabwe increased its production from 800 metric tons to 1,600
metric tons. The country’s privately owned Bikita Minerals is the only lithium producer, and
allegedly holds the world’s largest-known lithium deposit at over 11 million tonnes, while three
other miners are working towards production. Total reserves stand at 70,000 metric tons, as per
the US Geological Survey.

Since former President Robert Mugabe’s resignation after 37 years, there has been great
speculation as to the country’s potential in the lithium market. Winston Chitando, Zimbabwe’s
new mining minister, said he believes the country has “the potential to actually account for 20
percent of global lithium demand when all known lithium resources are being exploited.”

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6. Portugal
Mine production: 800 MT

Portugal produces much less lithium than the five countries ahead of it on this list. Last year, it put
out 800 metric tons of the metal, the same amount it produced in 2017.

Most of the country’s lithium comes from the Gonçalo aplite-pegmatite field. Despite this lithium
producer’s comparatively low output, its lithium reserves stand at 60,000 metric tons. The country
is set to launch a tender of lithium exploration licenses in 2019, with an aim to make Portugal
Europe’s top lithium supplier for batteries used to power electric cars.

7. Brazil

Mine production: 600 MT

The next largest lithium producer is Brazil, whose lithium production comes in at 600 metric tons,
three times higher than in 2017. While lithium reserves in Brazil are small, the country does have
lithium deposits in the Minas Gerais and Ceará areas. Again, its reserves, which stand at 54,000
metric tons, are more impressive than its output, so the country potentially has a long lifespan for
lithium output at the current pace.

8. Namibia

Mine production: 500 MT

Namibia made the top lithium production by country list for the first time in 2018, with its total
lithium production reaching 500 metric tons. First lithium concentrates from the country were
exported in Q2 last year from development company Desert Lion Energy (TSXV:DLI,OTCQB:DSLEF),
an early stage producer focused on building Namibia’s first large-scale lithium mine.

9. United States

Mine production: unknown

In final place on our top lithium producers list is the US, which withheld production numbers to
avoid disclosing proprietary company data. Its only output last year came from a Nevada-based
brine operation, most likely in the Clayton Valley, which hosts Albemarle’s Silver Peak mine.
There are five major lithium projects underway in the US, including Lithium Americas’
(TSX:LAC,NYSE:LAC) Thacker Pass lithium claystone project, Piedmont Lithium’s (ASX:PLL) hard
rock lithium project and Standard Lithium’s (TSXV:SLL,OTCQX:STLHF) Arkansas Smackover lithium
brine project.

Now that you know more about lithium producers around the world, read our article on top
lithium-mining companies to see which firms are dominating the lithium market.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company
mentioned in this article.