Now we can better appreciate the scale of this construction. Tesla Gigafactory will be the tipping point for the lithium battery production and will drive prices lower to the magic $100 per kWh, when mass market for electric cars with Tesla Model 3 will be started. This is just the first one for Tesla and other Megafactories are coming being built by Foxconn, LG Chem, Boston Power, BYD and A123. Where lithium will come from? Tesla is supplied with lithium cells from Panasonic now, Panasonic is already buying lithium from Ganfeng Lithium. International Lithium is building the supply chain for lithium with Ganfeng Lithium in Ireland and Argentina, where Ganfeng finances our J/V projects. You can find more research on Lithium supply and demand below.
Joe Lowry has published his new projection of supply and demand for lithium for next ten years. Joe has warned in his twitter message today: "Appreciate many will disagree". I will follow his guidance based on years spent at the very heart of very "opaque" (in his own words) lithium market. The main drivers will be the mass adoption of electric cars during the next phase with Tesla Model 3, GM Bolt and Nissan Leaf with extended range and energy storage for Solar Power with Tesla powerwalls and powerpacks. Latest initiative from Obama administration will help to bring Solar Energy to the low income communities all across U.S. International Lithium will become part of this picture with our J/V projects in Ireland and Argentina financed by our strategic partner Ganfeng Lithium from China. I will provide a few links for the main drivers for this picture and some other work from Joe Lowry.
News about the potential shortage in battery grade lithium supply is travelling fast and now hitting the mainstream media.
Tesla Gigafactories: Is There Enough Lithium to Maintain the Growth of the Lithium-Ion Battery Market?
"Joe Lowry is sounding the rising alert for all industry insiders about the coming shortage of lithium. Tesla is waiting for Panasonic to solve all the supply problems, but the growing demand is already pushing prices higher even before Gigafactory comes on-line! The ignition of mass market for electric cars and energy storage will come with lower lithium battery cost. Gigafactory promise us to bring the magic $100 per kWh. Supply of lithium will become crucial and its security will be even more important than its price.Our partner Ganfeng Lithium controls with other Chinese companies 75% capacity of battery grade lithium hydroxide now. We are moving into the new landscape for critical materials which are powering the green revolution. Stay tuned for the update from our lithium exploration programs on J/V projects in Ireland and Argentina."
We have great news today from our both J/V projects with Ganfeng Lithium! You already know about my personal vision for the lithium industry and our strategic partnership between International Lithium and Ganfeng Lithium from China. Now we have results coming in from our exploration and development programs.