Announcement PDF 18 March 2024 Investor Webinar Presentation Lithium Australia Ltd (ASX:LIT) (“Lithium Australia” or the “Company”) is pleased to announce it will host an investor webinar on Friday, 22 March 2024, supported by Proactive Investors. CEO and Managing Director, Simon Linge extends an invitation to all Lithium Australia shareholders and new interested investors. During the 20-minute presentation, Mr Linge will provide an overview of the Company, which is aiming to lead and enable the global transition to sustainable lithium production. A copy of the Corporate Presentation is attached and can be viewed on the Company’s website. No new information is disclosed in this presentation. Webinar details Date / Time: Friday, 22 March 2024 / 11:00am (AWST) / 2:00pm (AEST) Registration: https://event.webinarjam.com/register/289/vo16ruwv Attendees can submit questions in advance to webinar MC Elisha Newell (elisha@proactiveinvestors.com) before Wednesday, 20 March 2024 at 11:00am (AWST) / 2:00pm (AEST). If there are numerous questions on a particular subject, answers will be consolidated in the interest of time. ENDS. Authorised for release by the CEO and Managing Director. Simon Linge Managing Director / CEO Mobile +61 (0) 438 721 280 simon.linge@lithium-au.com Stuart Tarrant Chief Financial Officer Mobile +61 (0) 467 817 005 stuart.tarrant@lithium-au.com Forward-looking statements This announcement contains forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties that it is beyond the Company’s ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Lithium Australia Limited ASX: LIT ACN: 129 129 413 Address Suite 16 & 17, 79-83 High Street Kew, Victoria 3101, Australia Contact +61 (0) 3 7017 2656 info@lithium-au.com Media (Investor Hub & Web) investorhub.lithium-au.com lithium-au.com ` About Lithium Australia Lithium Australia is aiming to lead and enable the global transition to sustainable lithium production. The Company operates Australia’s market leading battery recycler, produces critical battery material lithium ferro phosphate (LFP), and has developed a patented lithium extraction technology. Lithium Australia’s revenue-generating recycling business and technologies are well-placed to capitalise on growing global lithium-ion battery demand and provides diversification benefits to global supply chains. ASX ANNOUNCEMENTS Lithium Australia lithium-au.com Page 2 Energising a better world Investor Presentation | March 2024 ASX:ASX: LIT LIT Disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in that jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in that jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipients’ investment objectives, financial circumstances or particular needs, and the opinions and recommendations in this presentation are not intended to represent recommendations to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include, among others, the risk of adverse or unanticipated market, financial or political developments. Certain statements contained in this presentation, including information as to the future financial or operating performance of Lithium Australia Limited (ABN 29 126 129 413) (‘the Company’) and its business and operations, are forward-looking statements. Such forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements, and may include, among other things, statements regarding targets, estimates and assumptions in respect of commodity prices, operating costs and results and capital expenditures, or may be, based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. The Company disclaims any intent or obligation to update publicly any forwardlooking statements, whether as a result of new information, future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and other, similar expressions identify forward-looking statements. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com All forward-looking statements in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include but are not limited to: competition; ability to meet additional funding requirements; commercialisation risks; development and operating risks; uninsurable risks; risks associated with intellectual property; environmental regulation, permitting and liability; battery management, including fire risk; currency risks; effects of inflation on results of operations; factors relating to title to properties; dependence on key personnel, and shareprice volatility. Refer to the Company’s prospectus dated 12 October 2022 for additional details regarding key risks facing the Company. They also include unanticipated and unusual events, many of which it is beyond the Company’s ability to control or predict. Whilst care has been exercised in preparing and presenting this presentation, to the maximum extent permitted by law, the Company, and its representatives: ▪ Make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this presentation; ▪ Accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this presentation; and ▪ Accept no responsibility for any errors or omissions from this presentation. 2 Lithium Australia at a glance To lead and enable the global transition to sustainable electrification, delivering a better world Market leading Australian battery recycler achieving FY23 revenue of $5.5m1 (+118% from FY22) Strong partnerships in place with industry leaders to secure battery supply and Mixed Metal Dust offtake Lithium chemicals and battery materials patented technologies positioned for joint development opportunities Capitalising on growing lithium-ion batteries demand, which is expected to grow 571% between 2022-20302 Well positioned to execute on strategic objectives, with $7m3 in cash and liquid investments Notes: 1. FY23 Annual Report. 2. McKinsey & Company, Battery 2030: Resilient, sustainable, and circular (2023). 3. Cash and liquid investments as at 31 December 2023. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 3 Where we play Lithium Australia (LIT) is scaling up in the growing battery recycling industry and focused on high value opportunities across the lithium value chain Developing patented technologies Existing operations Exploration and Mining Lithium Chemicals Battery Materials Battery Manufacturing Battery Recycling Investments in lithium exploration assets Patented lithium extraction technology Proprietary materials production process Partnerships with leading battery manufacturers Revenue generating operations Current commercial lithium extraction yields are ~50-70%1 95%+ of the world’s lithium ferro phosphate (LFP) is manufactured in China2 Lithium-ion battery (LIB) waste is expected to grow at 20% p.a. through to 20363,4 ✓ LIT’s technology can process fine and low-grade materials to improve mining yields by up to 50%1 ✓ LIT has verified it’s LFP product, manufactured using a commercially competitive process ✓ LIT is Australia’s leading battery recycler with on-shore processing capabilities Notes: 1. Assumes existing mine concentrator is 60%: 60% to 90% Li recovery increase assumes lithium extraction technology recovers 75% of lithium units going to tails. 2. IEA, Global EV Outlook (2023). 3. Randell Environmental Consulting, Waste lithium-ion battery projections (2016) 4. CSIRO, Lithium-ion battery recycling (2023). ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 4 Click to edit Master title style Battery Recycling ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 5 Leading Australian battery recycler Revenue-generating battery recycling business executing on a plan to achieve profitability Australia’s leading battery recycler Only Australian battery recycler which processes lithiumion batteries domestically High barriers to entry Established operations with high barriers to entry (i.e. rigorous compliance standards require investment in safety) Strong financial performance In FY23, LIT’s battery recycling division increased revenue by 118% to $5.5m (FY22: $2.5m) Executing on key strategic initiatives Aim to become the industry partner of choice and achieve cashflow breakeven in the short-term ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 6 Attractive recycling revenue model Revenue generated from upstream fees, sale of recycled materials and complimentary services Recycling revenue streams 1 Upstream fees (~50% of revenue)1 1 Fees are charged to customers for the collection and processing of recyclable batteries 2 2 Upstream fees Downstream sales (~40% of revenue) 1 Downstream sales 3 Batteries are processed into Mixed Metal Dust (MMD), metals, and other by-products for offtake and sales 3 Services (~10% of revenue) 1 Services Provision of complimentary recycling services, including the sales / leasing of collection point boxes and storage services Notes: 1. Company analysis. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 7 Strong financial profile Rapid revenue growth driven by increased recycling volumes, BSC rebates and higher MMD sales Total recycling revenue (A$m)1 Recycling volume (tonnes)2 H2 H2 H1 $5.5m H1 1,347 1,086 697 $3.2m FY21 752 521 $1.6m $2.3m $0.7m $0.5m 531 $2.6m $2.5m $1.2m 849 $2.6m 650 328 $0.9m FY22 555 752 FY23 FY24 FY21 FY22 FY23 FY24 Notes: 1. Company financials. 2. Company analysis. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 8 Unrivalled recycling eco-system Strategic partnerships in place to secure battery supply, with focus on LIBs given higher efficiencies LIB recycling volume (tonnes)2 ✓ Battery supply chain strategy in action1 +64% End of life lithium-ion batteries will continue to be received from multiple sources including: 552 ✓ Passenger EV OEM’s ✓ ESS OEM’s 191 ✓ Installers of industrial ESS applications, such as micro-grids 336 ✓ The mining industry, including e-mobility and ESS ✓ Waste management industry (e-waste aggregation) 236 ✓ Hand held tool and device OEMs 63 ✓ Partnerships signed with global EV and ESS manufacturers are expected to secure the highest volumes of future lithium-ion batteries for the next five years. 135 362 173 201 FY21 FY22 Large format LIBs Notes: 1. EV = Electric Vehicle, ESS = Energy Storage Systems, OEM = Original Equipment Manufacturer. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com FY23 Small format LIBs 2. Company analysis 9 Growing Australian demand Rapidly increasing demand for batteries expected drive need for recycling services Australia EV market share (%)1 Recycling strategy 8.5% Secure supply with Tier 1 manufacturers Secure future supply of LIBs for recycling by signing recycling agreements with Tier 1 EV/ESS manufacturers Build national collection and storage capacity Scale up domestic battery collection and storage capacity to service increase in LIB collection volumes 3.8% 2.1% 0.1% 0.2% 0.1% 0.2% 0.2% 2014 2015 2016 2017 2018 0.7% 0.8% 2019 2020 Increase processing capacity Improve processing systems and technology to uplift battery processing capacity and efficiency 2021 2022 2023 Notes: 1. Electric Vehicle Council, State of Electric Vehicles (2023). ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 10 Becoming a self-sustaining recycling business Strategic roadmap to materially increase battery recycling volumes Long-term (3+ years) Medium-term (2-3 years) Short-term (1 year) Completed ✓ Recorded $5.5m revenue in FY23 ✓ Offtake agreement for MMD progressing1 ✓ Recycling agreements signed with leading manufacturers2 • Achieve cash flow breakeven • Optimise existing customer contracts • Secure further supply agreements with tier 1 EV and ESS4 manufacturers • Increase battery processing capacity to match collection volumes • Build national collection and storage capacity • Develop offshore strategy • Sign battery collection agreements with offshore partners • Accelerate collection of large format LIBs • Develop offshore collection and storage capabilities ✓ Improved MMD yield per tonne by up to 25%3 via process optimisation works Notes: 1. See ASX announcement, ‘Lithium Australia signs MOU with SungEel HiTech for MMD off-take and joint development agreement’’, 7 March 2024. 2. See ASX announcement, ‘Envirostream signs new exclusive battery recycling agreement with LG Energy Solutions’, 18 March 2024. 3. See ASX announcement, ‘Quarterly Activities Report December 2023’, 31 January 2024. 4. Energy storage systems. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 11 Click to edit Master title style Patented Technologies ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 12 Patented technologies Two unique technologies with partnership strategies in place to de-risk commercialisation Lithium Chemicals Lithium extraction technology which improves yield for miners ✓ Joint Development Agreement (JDA) signed with MinRes1 ✓ MinRes JDA free carries LIT position to commercialisation2 Patented and validated technologies Both technologies are protected by patents and have been validated by independent industry participants High barriers to entry Significant barriers to entry due to many years of development and novel nature of technology Attractive financial returns Battery Materials Both technologies expect to generate significant revenues, which would underpin a step change in Lithium Australia’s financial profile High quality lithium ferro phosphate (LFP) product ✓ Product quality validated by industry leader NOVONIX3 ✓ Focus on partnering to support production scale up Partnerships to drive commercialisation Partnership model identified as the optimal pathway to fund and commercialise patented technologies Notes: 1. See ASX announcement, ‘Landmark joint development agreement with Mineral Resources’, 7 August 2023. 2. Subject to successful completion of the pilot plant and engineering study. 3. See ASX announcement, ‘Final testing for Lithium Australia’s LFP cathode material’, 22 September 2023. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 13 Patented technologies strategic roadmap Clear strategy in place to commercialise patented technologies via partnerships with industry leaders Completed Lithium Chemicals ✓ JDA signed with MinRes ✓ $1.7m drawn from MinRes convertible note ✓ Piloting and engineering study activities underway ✓ ✓ Battery Materials LFP product independently validated by NOVONIX Progressed partnership discussions, as demonstrated by First Phosphate MOU1 Short-term (1 year) • LIT to manage key activities of piloting and engineering study • MinRes to fund key activities and provide raw materials Medium-term (2-3 years) Long-term (3+ years) • Complete key activities and form 50:50 JV with MinRes2 • Prove technology at commercial scale through MinRes demonstration plant • JV to issue first licence to MinRes demonstration plant • Operation of the scaled facility • Secure offtake / development partner for scaled facility • • Finalise FID3 and commence development of scaled facility Secure LFP offtake agreements • Complete engineering studies and approvals for a commercial facility • JV to issue multiple licences to brownfield and greenfield mines • Develop first commercial LFP / LMFP4 facility • Expand production globally through further facilities Notes: 1. See ASX Announcement, ‘Lithium Australia signs MOU with First Phosphate’, 7 December 2023. 2. Subject to successful completion of the pilot plant and engineering study. 3. Final Investment Decision. 4. Lithium Manganese Ferro Phosphate. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 14 Investment highlights Growing global demand: Well-positioned to capitalise on the increasing global demand for lithium-ion batteries Market leading recycling business: Australian-based battery recycler, providing sustainable solutions for the disposal of batteries Strategic supply partnerships: Future supply of batteries for recycling secured through global and domestic partnerships High potential patented technologies: LieNA® validated through strategic partnership with MinRes and high-quality LFP product confirmed by NOVONIX Multiple growth pathways: Well-defined path to optimise the recycling business, with further upside from partnering patented technologies to commercialisation Strong balance sheet: $7m1 in cash and liquid investments Notes: 1. Cash and liquid investments as at 31 December 2023. 15 Click to edit Master titleAppendices style ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 16 Click to edit Master title style Corporate Overview ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 17 Corporate overview Strong balance sheet with cash and listed investments of A$7 million Share price performance (last 6 months) Financial information Share price ($) Volume (m) $0.04 10 $0.04 8 $0.03 $0.03 Share price (15-Mar-24) 52-week trading range (low / high) $0.03 $0.03 / $0.07 Shares on issue 1,222m Market capitalisation (15-Mar-24) $34.2m 6 $0.02 4 $0.02 $0.01 2 Cash (31-Dec-23) $4.9m Listed investments1 (31-Dec-23) $2.1m Debt (Convertible Note) (31-Dec-23) ($0.9m) Cash and listed investments (31-Dec-23) $7.0m $0.01 $Sep-23 Oct-23 Nov-23 Dec-23 Volume (m) Jan-24 Feb-24 Share price 0 Mar-24 Notes: 1. Includes Charger Metals NL (ASX: CHR) and Evion Group NL (ASX: EVG). Joint venture holdings of 30% for certain tenements held by CHR also exist. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 18 Board and management High profile and experienced leadership team LIT Directors Simon Linge Managing Director and George Bauk Kristie Young Phil Thick Non-Executive Chairman Non-Executive Director Non-Executive Director 15+ years as a listed company director involved in mining exploration and production both domestically and internationally 25+ years’ experience focusing on the resources sector, with 15+ years’ experience on boards and committees 30+ years’ experience as a senior executive across oil & gas, mining and chemical processing sectors CEO 25+ years of senior management experience within global manufacturing, recycling and engineering services LIT Management Stuart Tarrant Chief Financial Officer 20+ years’ experience with mineral extraction, mineral exploration, finance and agribusiness Steven Marshall GM - Recycling 10+ years’ experience in the recycling industry with proven commercialisation experience ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com Andrew Skalski GM – Safety, Risk, and Integration 30+ years’ experience in mining operations, mineral project development and battery materials Andrew Napier GM - Technology Development 25+ years’ experience in the design, construction and commissioning of Greenfields and Brownfields facilities Julie Coleman Chief People Officer 30+ years’ experience in HR across mining, telecommunications, and higher education sectors 19 Click to edit Master title style Market Overview ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 20 Growing global demand Rapidly increasing demand for batteries expected to drive strong growth in lithium production LIBs demand growth1 Global shift towards EVs Global Li-ion battery cell demand, GWh 5000 4000 571% 3000 2000 1000 0 2022 2025 2030 Strong demand growth for battery cells supports need for LIT’s proprietary chemicals, materials, and recycling technologies 44 countries have committed to phasing out petrol car sales between 2035 – 20402 Notes: 1. McKinsey & Company, Battery 2030: Resilient, sustainable, and circular (2023). 2. Coltura, Gasoline Vehicle Phaseout Advances Around The World (2023). ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 21 Reducing supply chain risks World governments are actively trying to reduce dependency on China, who produces >95% of all LFP Government policies China dominates the market Various government policies in place to secure future access to critical materials Countries are looking to diversify their supply chain reliance " We're not looking to decouple from China. We're looking to de-risk and diversify our relationship with China.... so Australian Critical Minerals Strategy Battery Strategy we’re not dependent on any one country for necessary product. It means protecting a narrow set of advanced technologies critical for our national security.1 " Inflation Reduction Act (US) Joe Biden (46th US President) EU regulatory framework for batteries ✓ National framework to grow critical minerals sector ✓ Leverage Australia’s strengths in mining and mineral processing ✓ Invest into domestic energy production with Australia set to become a domestic source for critical sectors ✓ Framework to promote a circular economy and reduce the environmental impact throughout all stages of the battery life cycle Notes: 1. Critical materials supply chain CNBC article ‘We are not decoupling’: G-7 leaders agree on approach to ‘de-risk’ from China’. (2023). ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 22 Click to edit Master title style Patented Technologies: Supplemental Information ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 23 Lithium Chemicals: Overview Patented extraction technology offers ~50% higher lithium extraction efficiency ✓ Driving greater profitability for miners Unique method of processing un-used fine and low-grade spodumene, yielding higher levels of lithium output ~50% Higher yield efficiency relative to existing methods1 ✓ Improves sustainability Materially less wastage as fine and low-grade spodumene typically ends up as waste streams ✓ Increases mine asset value Miners can extract significantly more lithium from the same spodumene resources, increasing mine value Input Fine / Low-grade spodumene ✓ Moves down value chain Allows miners to capture more of the value chain by processing spodumene on site into a lithium chemical Processing Patented lithium extraction technology Output Lithium phosphate / High grade battery materials Notes: 1. Assumes existing mine concentrator is 60%: 60% to 90% Li recovery increase assumes lithium extraction technology recovers 75% of lithium units going to tails. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 24 Lithium Chemicals: Partnering with Mineral Resources Ltd. (MinRes) Joint development agreement with $13bn1 Australian miner validates lithium extraction technology STRATEGIC PARTNERSHIP2 • • MinRes will fund the pilot plant operations and engineering study (up to A$4.5m) LIT to provide its extraction technology, LieNA®, and will manage piloting and the engineering study • Upon successful completion of piloting and engineering study, a new 50:50 JV will be formed between LIT and MinRes • New JV aims to licence the technology at a headline gross product royalty rate of 8%3 • First licence will be for the demonstration plant, which is expected to be funded and operated by MinRes HIGHLIGHTS ✓ Ideal partnership Leveraging MinRes’ extensive mining operations and robust client base as an ASX50 company ✓ Free-carry Effectively free-carries LIT to commercialisation of the technology ✓ Large addressable global market Opportunity to target both brownfield and greenfield lithium mines globally ✓ Significant progress to date Over 1/3 of MinRes funding has been received to date, with key activities progressing4 Notes: 1. Market capitalisation as at 15 March 2024. 2. See ASX announcement, ‘Landmark joint development agreement with Mineral Resources’, 7 August 2023. 3. The Company cautions that although it considers this to be a reasonable expectation, there is no guarantee that this rate will be achieved. 4 See ASX Announcement, ‘Second drawdown from MinRes and appointment of lead engineer’, 15 January 2024. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 25 LieNA® process comparison Potential to broaden the quality of feed for extraction of lithium at scale Comparison to Conventional Thermal Conversion ✓ Process LieNA® is a disruptive process that replaces alpha to beta thermal conversion with a phase change using caustic. ✓ Feed grade LieNA® process has been tested technically at a range of grades, including lower than current thermal (alpha to beta) converters can effectively process. ✓ Reagent regeneration LieNA® has the potential to regenerate its key reagents. ✓ Equipment scale up LieNA® operates at conditions akin to Alumina plants, providing an industrial analogue to reference for scale up and engineering design. ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 26 Battery Materials: Overview Validated and sustainable lithium ferro phosphate (LFP) production ✓ Proven LFP product Independently assessed and validated against commercially available products by leading battery researcher NOVONIX Validated product Proprietary production process ✓ Proprietary cost-competitive process Proprietary production process, developed over 20+ years, ready for LFP manufacturing at scale on a competitive basis ✓ Partner ready Securing of offtake and / or development partners remains the focus before scale up of manufacturing ✓ Reducing supply chain risks Input Lithium carbonate / other inputs Processing Proprietary production process Output Governments globally are actively seeking to lower dependency on China, who produces >95% of all LFP Lithium Ferro Phosphate (LFP) ASX: LIT | March 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 27 Contact Information COMPANY Suite 16 & 17, 79-83 High Street Kew VIC 3101 Click to edit Master title style Simon Linge E: simon.linge@lithium-au.com T: +61 (0) 3 7017 2656 www.lithium-au.com 28