High Future Demand for Lithium Carbonate: Lithium Carbonate is the basic raw material for the production of lithium used for production of lithium batteries. China is targeting twenty percent of its energy requirement by 2020 from renewable sources
Site for Manufacturing Plant Finalized, Offers Potential for Higher Margins: Galaxy has selected a site located in the Jiangsu Eco-Friendly New Materials Industrial Park to construct a manufacturing plant in China to produce lithium ion batteries for E-Bikes. This offers the potential for higher margins and a direct exposure to the high growing E-bikes market in China. When in production the Company will be world‟s largest supplier of EV grade lithium
Strong Lithium Assets: In the near future, the Mt Cattlin mine will be the world‟s second largest hard rock producer of lithium and through the development of its value adding lithium carbonate plant (17,000 tpa) the Company will be the largest producer of EV grade lithium carbonate in the world
Ease of Operations: Mt Cattlin is a simple, relatively risk free open-pit mine with ease of accessibility. The processing of spodumene to lithium carbonate is a time tested and well understood process. The Company can easily upgrade the ore by simple crush and heavy media separation. Also the China plant has all required utilities on site and all key reagents are available in a nearby region. This has helped to reduce operational risks
Potential to Capitalize on the Future Demand of Lithium: Galaxy Resources has positioned itself to meet this future lithium demand by not only mining the lithium, but also by downstream processing to supply lithium carbonate to the expanding Asian market
Advantage of Operating in China: Galaxy has a manufacturing base in China which will reduce operating costs for the Company. It already has off-take arrangements in place for all production from the Jiangsu plant
Off-take Arrangements in Place: The Company has entered into off-take framework arrangements for 17,000 tpa of lithium carbonate with Mitsubishi Corp and 13 major cathode producers in China
Interest in Future Global Rare Earths Supply:
Galaxy has announced positive results from a review of the Company's 100% owned Ponton Rare Earths Project (Ponton Project), which has been held by Galaxy since 2003. The Ponton Project is located 200 km east of Kalgoorlie in the eastern Goldfields region of Western Australia, 70 km north of the Trans-Australian railway line. It comprises a single Exploration Licence Application (E28/1317) covering about 206 sq km
