The Lithium Ion Battery - A Potential Growth Driver for Natural Graphite

THE LITHIUM-ION BATTERY: VISUAL CAPITALIST A POTENTIAL GROWTH DRIVER FOR NATURAL GRAPHITE O TODAY TOMORROW LITHIUM-ION BATTERIES ARE ALREADY IN OUR MOBILE DEVICES AND POWER TOOLS LITHIUM-ION BATTERIES WILL POWER THE FUTURE OF GREEN TECHNOLOGY. LI-ION vs OTHER BATTERIES 10 000 LITHIUM-ION BATTERIES HAVE HIGHER CAPACITY AND THE ABILITY 1 000 TO DELIVER MORE POWER LITHION-ION 100 Li-lon NICKEL-METAL HYDRIDE: NICKEL CADMIUM: TOYS, POWER LEAD ACID: USED IN CAR BATTERIES AND INEXPENSIVE NICKEL-METAL HYDRIDE: USED IN FIRST LITHIUM-ION: 10 BEST ENERGY DENSITY. DROPPED IN COST 50% SINCE 2008. TOOLS. OLDER NICKEL CADMIUM TECHNOLOGY. HYBRID CARS LIKE PRIUS LEAD ACID 0 20 40 60 80 100 120 140 160 180 200 (PERFORMANCE) CAPACITY (SPECIFIC ENERGY) HOW LITHIUM-ION BATTERIES WORK ALL LITHIUM-ION BATTERIES HAVE THREE PARTS: ELECTRONS CURRENT 1 ELECTROLYTE LITHIUM SALT IN ORGANIC SOLVENT 2 CATHODE • DIFFERENT FORMULATIONS OF METALS ARE ADDED TO LITHIUM IN THE CATHODE. LITHIUM TITANATE LITHIUM TITANATE CAN ALSO BE USED FOR ANODE, BUT IT COSTS $23,000/TONNE. • COMMON MATERIALS: MANGANESE, IRON, NICKEL, COBALT, ALUMINUM. 3 ANODE: GRAPHITE UNIQUELY, IT CAN CHARGE TO 90% FULL IN 10 MINS GRAPHITE 8:1 NCA VIRUTALLY ALL COMMERCIAL GRAPHITE IS A CRITICAL COMPONENTOF LITHIUM ION BATTERIES AND CANNOT BE ECONOMICALLY SUBSTITUTED.. LI-ION BATTERIES USE GRAPHITE LITHIUM NICKEL/COBALT/ALUMINUM UP TO 15X MORE GRAPHITE THAN LITHIUM IS NEEDED TO MAKE GRAPHITE 13:1 LFP EACH BATTERY.… THE RATIO DEPENDS ON THE CATHODE MATERIAL LITHIUM IRON PHOSPHATE GRAPHITE 15:1 LMO LITHIUM MANGANESE OXIDE DEMAND DRIVERS FOR LI-ION BATTERIES 4 000 000 SALES HEV O HYBRID ELECTRIC VEHICLE USES BATTERY POWER TO BOOST EFFICIENCY OF ENGINE A ELECTRIC & HYBRID VEHICLES BEV 372 HEV 44.8 PHEV AMOUNT OF GRAPHITE IN BATTERY O PLUGIN HYBRID ELECTRIC VEHICLE 735 000 SALES 110 KG USES BATTERY POWER OR INTERNAL COMBUSTION ENGINE TESLA ROADSTER NISSAN LEAF CHEVY VOLT PHEV 18 BEV 157 000 SALES KG O BATTERY ELECTRIC VEHICLE 2004 ........... 2010 2020 (proj.) USES ONLY BATTERY POWER B SMART GRIDS TOMORROW'S POWER GRIDS WILL USE COMPUTERS TO IMPROVE EFFICIENCY AND FLEXIBILITY OF POWER DISTRIBUTION SMART GRIDS USE LI-ION BATTERIES TO ADJUST TO FLUCTUATIONS IN DEMAND PROJECTION: GLOBAL SALES OF L-ION BATTERIES FOR USE IN SMART GRIDS © CONSUMER ELECTRONICS [DEVICE SHIPMENTS, MILLIONS] SMART GRID LI-ION BATTERIES WERE FIRST COMMERCIALLY USED IN CONSUMER ELECTRONICS USE IS EXPECTED TO RISE RAPIDLY AS WE 800 FORECAST IMPROVE OUR ENERGY 700 INFRASTRUCTURE 600 TABLETS SMARTPHONES LAPTOP PCs DESKTOP PCs 500 400 300 200 2012: $72 MILLION 2020: $5.98 BILLION 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 THE LITHIUM-ION BATTERY: A POTENTIAL GROWTH DRIVER FOR NATURAL GRAPHITE 2 3 4 IN CONCLUSION THE WORLD IS BECOMING MORE ENERGY EFFICIENT, MOBILE, AND GREEN. LITHIUM-ION BATTERIES HAVE THE HIGHEST ENERGY DENSITY AND WILL FUEL OUR ELECTRIC CARS, SMART POWER GRIDS, AND MOBILE DEVICES. GRAPHITE IS A KEY COMPONENT OF LI-ION BATTERIES. NATURAL GRAPHITE IS CHEAPER TO USE THAN LITHIUM TITANATE AND SYNTHETIC GRAPHITE. LI-IONS HAVE DROPPED IN COST ALMOST BY HALF SINCE 2008. GLOBAL DEMAND FOR LITHIUM-ION BATTERIES US SIN MILLIONS 60000 50000 40000 30000 20000 10000 1995 2000 2005 2010 2015 2020 Visual Capitalist is committed to providing independently researched content for educational purposes. Thanks to Lomiko Metals for covering the production costs of this project. Learn more at www.lomiko.com LOMIKO METALS. TSX-V: LMR VISUAL CAPITALIST Educating a new generation of investors on resource investing and managment VISUAL CAPITALIST www.visualcapitalist.com TOP 5 SOURCES: HTTP://BATTERYUNIVERSITY.COM/LEARN/ARTICLE/TYPES OF LITHIUM ION HTTP://CENS.COM/CENS/HTML/EN/NEWS/NEWS INNER 37120.HTML HTTP://WWW.SLIDESHARE.NET/GRAPHITEEXPLORATION/BYRON-CAPITAL-MARKETS HTTP://WWW.ELECTROIQ.COM/ARTICLES/STM/2011/09/SMART-GRIDS-SUPERCHARGE-LI-ION-BATTERY-DEMAND.HTML HTTP://WWW.ROLANDBERGER.COM/MEDIA/PRESS/RELEASES/511-PRESS ARCHIVE2011 SC CONTENT/STUDY ON DEVELOPMENT OF AUTOMOTIVE LI ION BATTERY.HTML FOR A COMPLETE LIST OF SOURCES, PLEASE VISIT: VISUALCAPITALIST.COM/SOURCES PERFORMANCE (SPECIFIC POWER) uol-I7 Li-lon