Resource World Magazine

The Lithium Report BATTERY TECHNOLOGY TO LEAD LITHIUM DEMAND by Kathrine Moore L ithium is extracted from two very different sources, hard-rock ore and continental brines. Most of the world's lithium is extracted from salars (brine sources) as it is more economical than hard-rock lithium mining. Salars are composed of brines and salts and are rich in many minerals including lithium, potassium and boron. Solution potash mines, where brine is pumped to the surface, are a rich source of lithium. The lithium content in brines is concentrated by placing brine into evaporation ponds; evaporation can take up to a year. Brines yield a high purity lithium making evaporate-style mineral deposits the primary source of lithium for batteries which require lithium with a 99.9+% purity. Because it is difficult to produce lithium at the high grades required for battery applications, hard-rock lithium is generally used to supply the ceramic and metal markets. But hard-rock producers do have an advantage; it only takes a few days to mine and ship lithium. 46 www.resourceworld.com When we think of lithium today, we think of batteries. Most lithium is actually consumed by the ceramics and glass industry, though battery application demand is catching up. It is the development of the battery industry of rechargeable lithiumion batteries for use in hybrid and electric cars, laptops, cell phones, MP3 players that has revived explorer and investor interest in lithium. WORLD LITHIUM PRODUCTION Chile produces most of the world's lithium with Australia coming in second. Argentina and China are the next largest lithium producers. The US contributes a small amount to the world supply. The rest of the supply is produced by Portugal, Zimbabwe and Brazil. Currently, there is no lithium produced in Canada. But that is about to Change. Canada Lithium Corp.'s [CLQ-TSX; CLQMF-OTCQX] goal is to be Canada's first lithium producer and plans to begin lithium carbonate production in 2013, in Québec. Canada Lithium is constructing a $202-million open-pit mine and processing plant that is expected to be in full production of battery-grade lithium carbonate in 2013, with full annual production totaling 20,000 tonnes. Canada Lithium has signed a five-year lithium carbonate off-take agreement with Tewoo-ERDC (Tianjin Products and Energy Resources Development Co., Ltd.), for a minimum annual commitment of 12,000 tonnes of battery-grade lithium carbonate. Peter Secker, President and CEO of Canada Lithium said, "The agreement with Tewoo secures a market for a significant portion of our annual production and demonstrates that China is the fastest growing consumer of lithium carbonate products. Having a long-term, strategic partnership with the Tewoo group will provide significant support for our product sales and distribution in China." In the United States there are two producers of lithium. Chemetall Group Lithium Division, Rockwood Holdings Inc.'s [ROCDECEMBER 2012/JANUARY 2013

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