2021 Annual Report

KWINANA LITHIUM HYDROXIDE PLANT Kwinana is one of the first fully automated battery grade lithium hydroxide facilities globally and the first to be built in Australia. Kwinana is approximately 35km south of Perth, Western Australia, and only 200km north of Greenbushes, adjacent to major supply chain logistics. The plant consists of two individual production trains which will produce 48ktpa of lithium hydroxide in aggregate once in full production (24ktpa per Train). Construction of Train 1 is complete and commissioning is currently underway, with first production expected during 1H22. Train 2 is partly complete and the Lithium JV expects to recommence construction in 2022 and to start commissioning in 2024. Lithium hydroxide from Kwinana will be sold under long-term offtake contracts to leading battery manufacturers in South Korea and Europe who are demanding high quality, ethically produced product for their latest generation of high- performance lithium-ion batteries. ENABLING THE LATEST LITHIUM-ION BATTERIES Global demand for lithium is growing rapidly as battery and energy storage technologies become more efficient and cost effective, and the global push toward decarbonisation accelerates at pace. The Lithium JV’s fully integrated lithium business will play a key role in satisfying demand for high quality, ethically produced lithium for the battery industry. The Lithium JV’s 51% share of spodumene concentrate produced from Greenbushes will be preferentially transferred to the Kwinana Lithium Hydroxide Refinery for conversion into battery grade lithium hydroxide, the chemical form of lithium required to produce high performance lithium-ion batteries. This lithium hydroxide will be exported and sold directly to tier-1 battery manufacturers in South Korea and Europe under long-term offtake contracts. Offtake partners include LG Chem, SK Innovation, EcoPro and Northvolt. Spodumene concentrate produced in excess of Kwinana’s requirements will be sold by the Lithium JV to Tianqi at benchmark pricing, for export to China where Tianqi has existing lithium conversion capacity. SIGNIFICANT BROWNFIELDS GROWTH OPPORTUNITIES With the rapidly expanding demand for both spodumene concentrate and lithium hydroxide, the Lithium JV plans to expand production capacity at Greenbushes and to successfully bring both lithium hydroxide trains at Kwinana online over the coming years. At Greenbushes, the immediate priority is to recommence production from CGP2 during 2021, adding an additional 600ktpa of production capacity. In 2022, the Tailings Retreatment Plant (TRP) is expected to be commissioned resulting in a further 280ktpa of concentrate from the existing tailings facility at Greenbushes. Combined concentrate production capacity is expected to reach 1.5Mtpa by the end of 2022, making it one of the largest single suppliers of spodumene concentrate in Australia. Longer term, two additional chemical grade plants, CGP3 and CGP4 are planned. At Kwinana, commissioning of Train 1 is underway, with ramp up to the full 24ktpa production level expected by the end of 2022. With the learnings gained from Train 1 commissioning, the Lithium JV will recommence construction of Train 2 in 2022, with commissioning in 2024. The Lithium JV also has an option to expand Kwinana by adding an additional two trains (Train 3 and 4) in the future to bring total potential capacity to 96ktpa LiOH. A decision on Trains 3 and 4 will be subject to further studies. Highlights Aligned with IGO’s strategic focus on clean energy metals, with lithium set to be a key beneficiary of the increased demand for lithium-based battery technology High quality assets with scale and long life, both located in a Tier-1 jurisdiction, and with excellent ESG credentials Adds downstream exposure to increase connectivity with end-users Significant growth optionality at both Greenbushes and Kwinana Compelling value for IGO and its shareholders, with the transaction agreed at a cyclical low in the lithium market IGO ANNUAL REPORT 2021— 21