Lithium 101

The importance and exponential demand for growth for lithium

The Importance of Lithium

Lithium Is the Lightest Metal in the World

Perfect to store a lot of energy in a limited space (electric vehicles) and no other mineral can compare

No Other Clean Energy Technology Comes Close

Anticipated that in 10 to 15 years lithium batteries will still lack a clear rival

Climate Change Accelerating Shift to Electromobility

Lithium-ion batteries essential for decarbonizing the global economy

Lithium Demand Is Exponentially Growing

2020 demand was 330,000 metric tonnes (mt) forecast to grow to ~1M by 2025

Exponential Demand Growth for Lithium

Growing Unaddressed Global Shortage

Electric Vehicles (EV) Dominate Lithium Demand

How is Lithium Extracted?

Lithium development by conventional means has a meaningful environmental impact on carbon emissions, water, and land.

Conventional Lithium Extraction

Not aligned with current ESG priorities

Direct Lithium Extraction (“DLE”) Brine Method

Reduces environment impact with enhanced project economics

CO₂ emissions intensity 7x larger with hard rock compared to brine when producing battery quality lithium products
Significant hydrocarbon usage during ore extraction
Lithium recovery commonly achieved via acid roast: very energy intensive
High CAPEX, high OPEX

Harmful to surrounding ecosystems
Negatively impacts water supply from habitats that are usually dry already
Long, time-intensive process
Efficacy tied to climate (sunlight, heat, humidity)
Large land footprint

No evaporation ponds/salt piles/lime plants/open pit mines
Potential for carbon-neutrality
Almost all process water used is recycled
Negligible land footprint compared to other methods
Quick construction and start-up time, faster product to market (<1 year)
Lower CAPEX and OPEX compared to other methods

Lower carbon intensity with Brine*

*Note: Emissions intensity is the CO₂ emissions (from all fuel sources) required to produce one tonne of refined lithium product, stoichiometrically normalized to a lithium carbonate product (lithium carbon equivalent or LCE). This calculation includes all CO₂ emissions grouped under Scope 1 and 2 categories as set out by the Greenhouse Gas Protocol. In addition, where applicable it accounts for the CO₂ emitted in transporting feed material to any refining facilities involved in the production of refined lithium chemicals. For the purpose of this analysis, emissions are classed as any anthropogenic sources of CO₂. Future production is determined by the average LCE production at each operation, 2025- 2030

Water consumption by project type (L/Kg)

Water is required for all lithium extraction and processing.

Blue Ridge Lithium is committed to exploring various options to minimize the use of water, while also seeking to implement water recycling efforts into our process.

Industry is also developing a range of high-performing DLE sorbents, some of which could potentially facilitate further water consumption in the process.

Investable North American Lithium Brine Projects are Scarce

Company	Operations	Market Cap (C$M)	Listed Market
E3 Lithium	Canada	$158	Canada / USA / Germany
Lithium Bank	Canada	$36	Canada
Standard Lithium	US	$1,253	Canada / USA / Germany
Alpha Lithium	Argentina	$156	Canada / USA
Argentina Lithium	Argentina	$19	Canada / USA / Germany
Arena Minerals	Argentina, Chile	$194	Canada / USA
Wealth Minerals	Chile	$70	Canada / USA / Germany
Bearing Lithium	Chile	$40	Canada / USA / Germany

North American projects provide greater political & regulatory certainty with stringent environmental standards compared to South American projects.

Example: In 2018, ACI systems signed a JV Bolivian state-owned YLB. Deal annulled 2019 amid political turmoil and has yet to be reinstated.

* Pre-Production, Pure-Play, Canadian Listed; Market data as at Sept 9, 2022

Lithium brine projects are scarce, making Blue Ridge Lithium's valuation attractive

“It is definitely true that the fundamental enabling technology for electric cars is lithium-ion as a cell chemistry technology. In the absence of that, I don’t think it’s possible to make an electric car that is competitive with a gasoline car.”

– Elon Musk, CEO Tesla Motors