The Lithium formula of success

Raw Materials

Sophisticated Products

Added value services

= YOUR BENEFIT
Dr.-Ing. Thorsten Buhrmester
Global Marketing Director
Rockwood Lithium
Presentation for the Lithium Commission, Santiago de Chile 2014

Forward Looking Statements

This presentation may contain certain "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc.
and its subsidiaries (Rockwood). Although Rockwood believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized.
"Forward-looking statements" consist of all non-historical information, including the statements referring to the
prospects and future performance of Rockwood. Actual results could differ materially from those projected in
Rockwoods forward-looking statements due to numerous known and unknown risks and uncertainties, including,
among other things, the "Risk Factors" described in Rockwoods 2008 Form 10-K with the Securities and Exchange
Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to
reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of
unanticipated events.

Consumption of Lithium by end-use

Rubber &
Thermoplastics
4%

Pharmaceutical
2%

Other
13%

Continuous
Casting
3%

Ceramics &
Glass
33%

Air Treatment
4%
Aluminum
3%

Batteries
28%

Greases
10%
Total demand approx. 140.000 mt LCE in 2012
Source: Roskill data
4

Potential LCE Demand for Lithium Battery (LIB) Market

Application (2014)

Lithium Carbonate Content

Cell Phone

3 grams ~ 0.1 oz

Notebook

30 grams ~ 1.0 oz

Power Tool

30-40 grams ~ 1.0-1.4 oz

Hybrid (HEV) 2 kWh

3.5 lbs

Plug-in Hybrid (PHEV) 15 kWh

26 lbs

Electrical Vehicle (BEV) 25 kWh

44 lbs

Source: Rockwood Lithium estimates and market surveys from BCG, Bloomberg, Avicenne, Roland Berger,
Pike Research, Fraunhofer IST, Deutsche Bank Research, McKinsey, CTI, Anderman, JD Powers

16

LCE consumption by Applications in LIB

Today

Portable Electronics (largest market today)

approx. 80-90% of total LCE used in Batteries

Automotive (HEV, PHEV, EV), Emerging Market

approx. 10% of total LCE used in Batteries

Stationary (developing market)

below 5% of total LCE used in Batteries

LIB Applications

Portable Electronics (largest market today)

approx. 80-90% of total LCE used in Batteries

Automotive (HEV, PHEV, EV), Emerging Market

approx. 10% of total LCE used in Batteries

Stationary (developing market)

below 5% of total LCE used in Batteries

Types of Batteries

Type of Battery

Energy
Density
[Wh/kg]

Comment

lead acid

30-40

high weight, low density

NiCd

40-70

environment!, high self-discharge

NiMH

60-80

widely used in hybride e-vehicles

Li-ion

120-190

fast charge/discharge

beyond lithium

>350

safety, price, stability, R&D level

Li-ion Battery Principle

Charge transport achieved by Li+ ions, intercalation compounds on

the anode and cathode

[source: Axeon Battery guide]

10

Battery Performance Chart

Choice of battery is always a balance of safety, energy density,

cycle life, temperature range and price
next generation

State of the art

for automotive
applications

[source: www.electropaedia.com]
11

CAM (Cathode Active Material) Comparison

Specific battery chemistries are typically named after cathode materials

Lithium-Iron(Ferrum)-Phosphate (LFP)
Nickel-Manganese-Cobalt-oxide (NMC)
Lithium Cobalt-oxide (LCO)
Li-Manganese-oxide Spinel (LMO)

material

application

energy density
[Wh/kg]

LFP

EV/HEV

100-120

2000-20000

270C

NMC

HEV

190

1500-5000

215C

LCO

---

170

500

170C

LMO

EV/PHEV

100

1000-2500

255C

cycle life

thermal
runaway

12

13

Cell Types
Anode

Cylindrical

Separator

Prismatic

Pouch

Cathode

Metal Case
Anode
Separator Cathode

Metallised foil
Anode
[source: Axeon Battery guide]
Separator Cathode
14

Cell Types Advantages/Disadvantages

Prismatic:
+ efficient packing
+ good heat dissipation due to metallic housing (aluminum or steel cans)
size: up to 100 Ah

Cylindrical
+ standard shapes allow for low prices (mass market for laptop
applications); standard: 18650 (diameter: 18 mm, length: 650 mm)
higher prices for non-standard shapes
inefficient use of space
size: up to 200 Ah (depending on shape)

Pouch
+
+

flexible format
most efficient use of space (90-95%)
low mechanical stability on cell level
alternative to large prismatic cells for automotive applications
[source: Axeon Battery guide]
15

16

17

E-mobility
Development of
# of cars

2014

Capacity in average: PHEV: 11 kWh

BEV:
35 kWh
18

BEV

power

Battery types by vehicle application

Leaf

Tesla S

REEV

power

distance

PHEV

power

distance

distance
19

Battery types by vehicle application

Driving Range

Battery sizes

BEV

150 km

REEV

80-100 km

PHEV

<50 km

FCEV

<10 km

[kWh]

BEV

REEV

PHEV

small

20

13

medium

24

16

20

large

28

19

13

utility vehicle

32

22

16

20

Current and Future Demand

short term demand:
Availability of new electrified models
leads to increase of demand of lithium
salts
Global incremental increase of EV
new car sales driven by US, Japan,
and Europe

long term trends:

BEV and PHEV sales trends increase
significantly, following on societal
growing adoption of non-conventional
cars
data basis: internal evaluation of 8
different studies and reports

21

Market Shares / Automotive Applications

NMC

NCA

LMNO

LFP

LiOH
LiOH
2600

LCO

Li2CO3
2015e

2014e

Li2CO3
3600

LMO

2020e
LiOH
3200

Li2CO3
4400

short term demand:

Choice of cathode active material (CAM) determines the share between
lithium hydroxide and lithium carbonate
Tesla success story leads to an unexpected increasing share of LiOH
the new Giga-factory will increase the future demand even further
22

Inside an EV Li Ion Battery (example GM)

Negative
Terminal

Positive Terminal
Separator

Cathode
Laminated Pouch Anode

Battery Cells

Battery Module

Battery Pack
23

Electromobility Value Chain

Rockwood Lithium is active in
cooperations and in close contact
with the main players
Automotive OEM

Pack Assembly

Battery Cell

Active Materials
Base Material

Umicore
Samsung
Panasonic
Nichia, Easpring
BASF, Clariant
Hunan Reshine

BAK
PEVE
LG Chem
LiTec
Panasonic
AESC
Leclanch

SK Continental
Accumotive
Cobasys
Toshiba

Toyota
GM, BMW
Honda
Nissan
Daimler
Volkswagen
PSA
Hyundai

Tesla
Lithium Energy Japan
Bosch
BYD, B456
Image sources: webpages GM, Tesla, BASF
24

25

Storage: Energy vs. Storage Time

0,5h

Power storage

Daytime energy storage

0,5d Longtime energy storage

1kW

Capacity

Local storage

Avoidance of local
network expansion
Stabilization

Consumption of electricity

Stand-alone Systems

Balancing energy
Control of peak loads
Avoidance of distribution

Stand-alone Systems

100kW

100MW
central storage

Connected load

decentralized
storage

Balancing energy
Stabilization
Control of peak loads

Balancing
energy
Stabilization

network
Arbitrage dealing

Balancing intraday
fluctuations
Avoidance of network
Arbitrage dealing

Failure insurance

compensation of
seasonal fluctuations
Stand-alone Systems

1GW
Electricity Company

Large
scale consumers

Power producer

electrochemical storage
chemical storage

Small consumers

adiabatic compressed air storage

thermal storage
26

Developments Stationary Power until 2020

LIB Technology is a suitable and cost balanced solution in
UPS for home application and
100 kWh 10 MWh industrial / grid storage
synergetic effects from automotive battery production

2.3 GWh installed in 2020 in Europe

$/kwh

GWh

1,200

240
Electric Vehicle Battery
Price Index results

1,000

200

800

600

400

160
2011:
$800/kWh
H1 2012:
$689/kWh
H1 2013:
$599/kWh H2 2014:
$540/kWh

120

80

200

40

0
2010

2012

2014

Annual battery production (GWh)

2016

2018

2020

2022

Battery pack price ($/kWh)

2024

2026

2028

2030

Observed electric vehicle battery price ($/kWh)

27

stationary market forecast EU

estimated storage capacity in Europe main drivers are Germany

and Italy with significant tax incentives and subsidy schemes
2,316
229
78
161
183

1,181
36
614

138
102
90
208
1,259

327
179
13

42

73

2013

2014

2015

526

Other
Netherlands
Austria
Denmark
Italy
Germany

690

114

208

2016

2017

379
2018

2019

2020
28

Developments Stationary Power until 2020

Technology Trends

Today:

Automotive cells are used

Tomorrow:

New Technologies at the horizon

improved long term stability
reduced TCO

Rockwood Lithium supports and contributes

to this technology development

29

30

Time-To-Market for changes in existing projects

material from
new production plant
1,5

3
years

Laboratory

Pilot Phase

Cell Tests

Material Evaluation At Customer Site

Material Evaluation Together With OEM
31

New System Development Timeline

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Vehicle
GEN1

GEN0

GEN2

GEN3

Battery
GEN1

GEN2

GEN3

Cells
GEN1

GEN2

GEN2

GEN3

GEN3

Celldesign

Materialis
GEN3

Source:NationalePlattformElektromobilitt

Participation in this market requires:

-close interaction with customers, -a long breath, -realistic expectation for timelines
32

Overview: Global Roadmaps

Entwicklungsziele
Asien/USA 2015

Gen3

Gen4

Entwicklungsziele
Asien/USA 2020

next generation

basic
R&D

[Quelle: Fraunhofer ISI: Technologie-Roadmap, 2012]

33

34

Rockwood Lithiums Support of the

Lithium Battery Market

Supply
Security

Production
Expansion

Raw
Material

Lithium
Compounds

Next
Generation
Batteries
New Material
Development

35

Safety

36

safety
lithium carbonate and
lithium hydroxide
low impurity level
anionic impurities
cationic impurities

foreign particles
metallic
(magnetic/non-magnetic)
non-metallic
[image source: web site Daimler AG]

processability
dust free
non-compacting
1 mm

safety considerations start at the raw materials level

37

Lithium Foil Extrusion

Extrusion Press

Lithium Ingots

Lithium Foil

38

Thin, Ultrathin and Laminated Foils

long lasting experience of foil production for more than 15 years
extrusion process for foil thicknesses down to 120 m
maximum width of Li foil: 100 mm

ultrathin foils down to 30 m

laminated foils
support: Cu foil
variation of surface morphologies
of support for optimized
electrochemical performance

custom made solutions within

machine specific limitations

39

QM and Foil Inspection

integrated quality control process
ISO-certified in accordance with ISO9001

40

41

Dedication Global R&D Network

ITRI

Automotive
Industry

Chemical
Industry

Europe

Americas

Asia

Equipment
Suppliers

DOE

German & US
Governmental
Offices
KLiB

Industry
and
Trade Associations

CIL Centro de
Innovatin del Litio
Chile

Strong R&D network to meet future market needs for LIB

42

Competence Network Lithium Ion Batteries (KLiB)

Membership Structure (Status: January 2014)

43

44

Lithium R&D
Innovation fr all-solid-state Batterien

45

Cycling Stability / Key Issues

charge- / dischargecycles
anode

cathode

separator

dendrite formation
increasing interface impedance
internal short-circuits by
metallic impurities

46

Problems and Rockwoods Contributions

solid electrolytes contribute to several aspects regarding
optimization of Li-ion and next generation batteries:
safety
avoided dendrite formation
intrinsic safety feature
against foreign particles
non-flammable
no risk of leaking

increased energy density

reduced thickness, more dense packaging
electrochemically: high transfer numbers
(~1 compared to 0.1-0.4 using liquid electrolytes)

key enabler of metal based systems like Li/sulfur

47

Solid Electrolyte Systems

two important main groups of solid
electrolytes
sulfidic compounds (LixPySz)
oxidic compounds
(zirconate type, e.g., LLZO)

lithium sulfide based systems offer

currently the largest potential
low interface impedance
stability towards lithium metal

development targets:
ionic conductivity: >10-3 S/cm
processability

[image source: A. Sakuda, A. Hayashi, M. Tatsumisago

Scientific Reports 3, doi:10.1038/srep02261]

48

Optimization of Ionic Conductivities

Overcoming the Challenges in the
Solid Electrolyte Systems is Key to Success

Nano
Structure

Material
Processing

Composition /
Doping

49

Lithium Sulfide Pure Grade

50

Pure Grade Li2S

Lithium sulfide pure grade (pg)
Li2S assay

>99.9%

electronic conductivity (RT)

<10-10 S/cm

ionic conductivity (RT)

10-12 S/cm

Base Material for

Solid Electrolytes

1 m
100 m
51

Conclusion
Safety considerations for batteries start
at the raw materials level
Solid electrolytes contribute to enhanced safety and energy
density

thermally stable
no risk of leaking, no flammable liquids
avoided dendrite formation
component design allows for an increased energy density

Next development steps:

material optimization with regard to ionic conductivity
process development / cell production

52

R&D Goals Lithium Batteries

Gen 4

Effective range [km]

500

Gen 3

Gen 2

>500 ca. 1500 Wh/kg

300 Wh/kg

200

200 Wh/kg
150-170 Wh/kg

100
130 Wh/kg

50

LiB optimized

Alloy anode
high voltage
cathode

Alloy anode
next gencathode

LiB
2012

today

Li-sulfur

next generation

future
opportunities

Time

Anode
Electrolyte
Cathode
RWLi

Graphite

Graphite

Alloys (Si, Al, Sn)

Alloys

Liquid

Liquid

Solid/Liquid

Solid/Polymer

LCO/LMO

LFP/NMC/LMO

HV-NMC, blends

e.g., Li2S

LiBOB

LiBOB, solid electrolytes, Li metal, Li alloys, Li2S@C

53

Rockwood Lithium as the leading producer of lithium and

special metal compounds is committed to expand
capacities and to develop tailor-made products in order to
satisfy its customers demands.

54

Backup slides

55

Production process for Lithium compounds

and time to market
Brine Process

Chemical conversion

Applications

Ore Process

56

Energy Density Generations

>500 ca. 1500 Wh/kg

Gen 4
500

Gen 3
Li-sulfur
Li-air
300 Wh/kg

200
150-170 Wh/kg

100

130 Wh/kg
LiB

Alloy anode
high voltage
cathode

LiB optimized
high voltage
cathode

50

time
today

2015

near future

future
57

Customer Highlights
Lithium
- Several Products
- Several Qualities

Specialty
Chemicals

Nickel
Compounds

Electrolytes
Cathode Materials
5 Different Types
- Many Sub Products

Electrolytes
Formulations/
Solutions

Cobalt
Compounds

Manganese
Compounds

Aluminum
Cathode
Manufacturing
Many Different Types

Binder

Aluminum Foil

Cell
Manufacturing

Separator

Battery
Manufacturing

End Product Makers

Consumer Electronics
OEMs
Stationary Applications

Anodes
Copper

Copper Foil
Graphite
58

59