Lithium Supply & Markets 2019: Notes from the Floor

After three days of discussions, panels and networking, this year’s Lithium Supply & Markets Conference has come to an end.

The Investing News Network (INN) kept busy at the event, which ran from June 10 to 12 in Santiago, Chile, engaging with companies, attending presentations and, of course, interviewing industry experts.

Scroll on to read more about what happened on the floor throughout the three day event, and stay tuned for our upcoming written and video coverage.

Battery and EV briefing day

Before the Lithium Supply & Markets Conference kicked off, conference participants had the chance to attend an electric vehicle (EV) briefing day, which included expert analysis and forecasts for the electric car sector, discussions on what upcoming technologies are disrupting the sector and an overview of essential battery raw materials such as nickel and cobalt.

In the morning, attendees heard presentations about the outlook for EV adoption, energy density and the future of EV batteries and what’s been happening in the Chinese EV market. Speakers included LCM Automotive’s Kevin Riddell, Rho Motion’s Adam Panayi and Pulead’s Yuan Gao.

Another morning highlight was a panel moderated by Fastmarkets Head of Base Metals and Battery Research William Adams, featuring RNC Minerals’ (TSX:RNX,OTCQX:RNKLF) Mark Selby and McKinsey Battery Materials Expert Ken Hoffman, who discussed nickel, cobalt and the future of lithium-ion batteries.

“#Nickel has not had a lot of investor focus, that’s why people have ignored some of #nickel‘s fundamentals, demand is not going to slow,” says @royalnickel Mark Selby at @Fastmarkets #lithium19

— Resource Investing (@INN_Resource) June 10, 2019

“Battery capacity is expected to reach 750GWh by 2025,” says @McKinsey‘s Ken Hoffman at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 10, 2019

Solid-state batteries took center stage in the afternoon, with presentations by Emily Hersh, managing partner at DCDB Group, and Chloe Holzinger, senior research associate at Lux Research. They were also part of a panel looking at cathodes and raw materials.

“Manufacturing will be the biggest challenge to solid state #technology implementation,” says @LithiumPodcast Emily Hersh at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 10, 2019

.@LuxResearch @ChloeHolzinger shares advantages and disadvantages of upcoming #battery materials: High #nickel cathodes, silicon anodes, #lithium metal anodes and solid electrolytes at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 10, 2019

Lithium Supply & Markets Conference: Day 1

Day one of the conference kicked off with a welcome address by Alberto Salas, chairman of SQM (NYSE:SQM), followed by Chile’s Minister of Mining Baldo Prokurica, who talked about his country’s future plans for the lithium sector.

“There are infinite opportunities in the #lithium space, demand for #EVs is increasing at a speed that was unthinkable a few years ago … demand is set to triple,” says Alberto Salas, chairman of $SQM at @fastmarkets #Lithium19

— Resource Investing (@INN_Resource) June 11, 2019

“The Chilean #lithium industry has to face challenges such as increasing investments and production,” says @bprokurica #Chile Minister of Mining at @fastmarkets #Lithium19

— Resource Investing (@INN_Resource) June 11, 2019

The lithium producers panel started right after, with a full room eager to hear from Emma Hall, Tianqi Lithium’s (SZSE:002466) vice president of corporate development and marketing; Pablo Altimiras, vice president of SQM’s lithium and iodine business; and David Ryan, Albemarle’s (NYSE:ALB) vice president of corporate strategy and investor relations. You can read more on their thoughts here.

Some of the changes the #lithium industry has faced are the speed of growth, quality requirements, changes in cathode chemistries and the changes in customer profiles, says $SQM Pablo Altimiras, “Flexibility is key” @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 11, 2019

“It is not only about the scale of what customers are requiring but the quality and sustainability,” says Tianqi’s Emma Hall at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 11, 2019

“It is important for companies and governments to work together but also with an eye on the market and the flexibility that is needed,” says $ALB David Ryan at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 11, 2019

Another big topic at the conference was prices, in particular after the London Metal Exchange decided to join forces with Fastmarkets to develop a lithium futures contract.

A panel moderated by Hoffman and featuring Morgan Stanley’s (NYSE:MS) Javier Martinez de Olcoz Cerdan, Minmetals Securities’ Jingwen Sun, the LME’s Antonio Masiero and Fastmarkets’ Williams provided insight on forecasting prices, the evolution of pricing and the development of a benchmark.

“We are bullish long term but forecast further #lithium price weakness over the next few years,” says @FastmarketsMB William Adams at #Lithium19

— Resource Investing (@INN_Resource) June 11, 2019

“#Lithium prices are not about demand, it matters but it is not the main driver – supply is,” says @MorganStanley Javier Martínez de Olcoz Cerdán at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 11, 2019

In the afternoon, attendees had the chance to participate in dynamic breakout sessions discussing topics such as the recycling of lithium-ion batteries, financing of projects and future mobility.

#Lithium financing breakout session is happening now at @FastmarketsMB #Lithium19 featuring Stormcrow’s Jon Hykawy and @LithiumIonBull Howard Klein pic.twitter.com/jpyKwD9r16

— Resource Investing (@INN_Resource) June 11, 2019

Lithium Supply & Markets Conference: Day 2

The second day of the event was full of opportunities to learn more about the sector, with options for participants to choose between presentations about the market and companies.

A morning highlight included SignumBox Founder and CEO Daniela Desormeaux’s presentation about the changes that the industry has experienced in the past 10 years and what the space could look like in the next decade.

“#Lithium demand will reach 1 million tonnes by 2028-2029, but production capacity is still the big uncertainty,” says @signumbox Daniela Desormeaux at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 12, 2019

“Supply and demand are not the only drivers of lithium prices, in this industry commercial strategies drive prices too, that’s why it is difficult to forecast,” says @signumbox Daniela Desormeaux at @FastmarketsMB #Lithium19

— Resource Investing (@INN_Resource) June 12, 2019

China and other Asian battery markets were under the spotlight as well, with presentations by Minmetals’ Sun and Roskill’s Jake Fraser.

Attendees also had the chance to hear more insight from experts about different regions, such as Australia and Europe.

Australian #lithium industry is under the spotlight at @FastmarketsMB #Lithium19 @globallithium @GalaxyLithium @PilbaraMinerals @neometalsltd @AlturaMining pic.twitter.com/i6Ds8W1TFA

— Resource Investing (@INN_Resource) June 12, 2019

The afternoon was all about investments and investors, funding lithium projects and offtake agreements.

INN was busy during the three day event, conducting interviews with CEOs and experts, including: Chris Berry of House Mountain Partners; Joe Lowry of Global Lithium; Fastmarkets’ Adams; Howard Klein of RK Equity; Desormeaux of SignumBox, Hersh of DCDB Group and analysts at Benchmark Mineral Intelligence.

You can click here to see our full Lithium Supply & Markets Conference playlist on YouTube. Interviews will be posted in the next week or so, so stay tuned!

Don’t forget to follow us at @INN_Resource for real-time news updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.