Galaxy Resources Limited: LSM Conference - China's Role in the Battery Game
Perth - Galaxy Resources Ltd. (ASX:GXY) (OTCMKTS:GALXF) is pleased to provide the Company's latest Corporate Presentation at LSM Conference titled "China's Role in the Battery Game".China Lithium Battery Consumption
The lithium-ion battery application mix is transitioning from being dominated by consumer electrics to new energy vehicle applications.
New Energy Vehicle Growth in China
Another record breaking year in 2016, with 517k New Energy Vehicles (NEV) produced in China, 80% of which were pure electric vehicles
Impact of NEV Growth for Lithium
China is currently the major producer and consumer of lithium chemicals with a focus on lithium-ion battery applications
- 24% growth in demand for lithium chemicals throughout 2016, underpinned by significant expansion in NEV uptake in China
- Continued strength in lithium prices is a clear indication that demand growth is likely to be outpacing supply side growth
- After becoming the dominant single market consumer of lithium compounds, as well as the leading producer of the same, China has transitioned from previously being a price follower into being the price setter
China NEV Growth Projections
NEV growth is a substantial component in China's evolving transportation market, as well as a major part of its international industrial policy
- "Medium to long term plan for the auto industry" (2025 plan) issued in April, detailing how China plans to strengthen its domestic auto industry and expand global exports of new energy vehicles
- Projected that sales of conventional ICE vehicles in China will stabilise, with all vehicle sales to come from NEVs
- Forecast sales of 2 million NEV in 2020 and total stock of 5 million NEVs on the road
- NEV sales of 7 million vehicles in a total of 35 million vehicles sold represents c. 20% penetration rate of NEVs in 2025
Company Highlights
- One of the premier global lithium opportunities with existing production and a world class asset development pipeline
- Operations restarted at Mt Cattlin with expanded capacity to generate substantial, 100%-owned cash flows in 2017, positioning Galaxy as a major global supplier of high quality lithium
- Diversified project portfolio with hard rock and brine based lithium assets across Australia, Argentina and Canada
- Revised DFS at flagship Sal de Vida Project in Argentina supports low cost, long life project with robust economics; Development Team confirmed
- James Bay in Canada, is a top quality development asset, providing a valuable option for Galaxy to supply North American and European markets
- Highly credentialed Management and Board with a strong network of downstream and end-user customers in the global lithium markets
- Robust lithium macro trends with surging demand from lithium ion battery applications and a lagged supply-side response
To view the full presentation, please visit:
http://abnnewswire.net/lnk/79I5MTTT
About Galaxy Resources Limited:
Galaxy Resources Ltd. (ASX:GXY) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
Contact:
Galaxy Resources Ltd.
T: +61-8-9215-1700
F: +61-8-9215-1799
E: info@galaxylithium.com
www.galaxylithium.com