THE MODEL

Question 1

Lithium particle batteries are favored as a compact power source in view of the element’s high vitality thickness and less energize time required to recharge
2025 demand estimate of 927kt LCE (a 17% CAGR).
Estimated total lithium demand in 2030 of 2.2Mt LCE, with ~70% (1.5Mt LCE) of global lithium demand from EV batteries by 2030. (Canaccord Genuity 2019 – Lithium Recharge)

Question 2

Vanadium is a key metal of the future with regards to energy storage, particularly stationary energy storage.
Energy storage, a process in which energy generated at one point in time is preserved for use at another time, plays a critical role in the transition to electric energy.
While the broader energy storage market, comprising consumer electronics, mobility (e.g. EV applications) and stationary applications, is expected to grow at a CAGR of 36% between 2018 and 2027, the fastest growth rate among all three belongs to stationary energy storage. [Bushveld Minerals Ltd website]

Question 3

Graphite is a key component of the batteries used in electric vehicles
With 103 Li-B manufacturing plants in the pipeline, a 20x increase in production capacity, more than 1.2 million tonnes of new graphite production will be needed by 2023 (Benchmark Mineral Intelligence)
There are currently no new graphite mines under construction
China is responsible for over 70% of global graphite production

Question 4

Cobalt is a key component of lithium ion batteries, integral to powering electric vehicles
Over 60% of global production is sourced from the Democratic Republic of Congo, and with a global push towards sourcing ethical cobalt, Electric Royalties is targeting jurisdictions with low geopolitical risk
Increasing supply deficits forecast beyond 2025 with base case demand projected at approximately 220,000 tonnes, from current levels of approximately 120,000 tonnes in 2019, an 83% increase

Question 5

Electrolytic manganese dioxide (EMD) is a critical component of the battery cathode mix in today’s alkaline and lithium ion rechargeable batteries.
Using manganese can significantly bring down the manufacturing cost of lithium-ion batteries which is a major factor in the cost of electric vehicles.
The global electrolytic manganese dioxide market size was valued at US$1.25 billion in 2018 and is expected to expand at a CAGR of 7.0% over the forecast period of 2019 to 2025. [Grand View Research Report 2019 – Electrolytic Manganese Dioxide Market Size, Share and Trends Analysis.]

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