AMX Mining | Strategy

Strategy

Why?

Lithium is critical for the current global paradigm-shift to electrification of transport, stationary storage and renewable energy. AMX Mining aims to provide Europe with supply security and a lower carbon footprint, in the growing battery supply chain.

What?

Lithium in the form of salt lake brine 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. Salt lake brine also has the added benefit of being very low in impurities such as iron, making it also suitable for lucrative, technical grade concentrate markets.

Where?

AMX Mining’s flagship project is Beihuo Salt Lake Lithium Project, located in Chongqing, People`s Republic of China, which it is advancing towards production.

 

Company Summary

  • Aim to become a sustainable Chinese supplier of premium, ultra-low impurity technical grade salt lake lithium brine concentrate and battery-grade lithium carbonate/hydroxide.
  • One of the largest lithium salt lake brine in China, rapidly advancing to development.
  • Simple production, ultra-low impurity mineral concentrate produced with virtually no iron or micas.
  • Demonstration plant salt lake brine concentrate product output.
  • Aim to be producing premium salt lake lithium brine concentrate and battery-grade lithium chemical products.

 

The Energy Transition is Upon Us…

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

  1. 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.
  2. 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).

 

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 the above 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

 

The AMX Mining Opportunity

  • Strategically placed to take advantage of the growing surge in lithium demand
  • Quality lithium development project at Beihuo Salt Lake Lithium Project
  • Strong cash position allowing rapid advancement of project
  • Highly experienced management team with a track record of delivering successful outcomes