Lithium Universe: Joe Lowry - China "Big 2" Lithium Companies Performance Compared To The "Big 3".

By Joe Lowry Global Lithium LLC copyright https://twitter.com/globallithium

Published with permission.

    Joe Lowry provides brilliant graphic explanation where the real action is now. China has become "Lithium Universe" with the largest Lithium Materials market, moving fast to claim largest Lithium Batteries market and will become the largest Electric Cars market in the world this year, according to my estimations.

  Ganfeng has announced in China on its website establishing of $170 million credit line  to finance expansion of its production facilities, financing of acquired last year mobile lithium battery maker and investing in the development of raw material base. The security of supply is everything. International Lithium is building vertically integrated lithium business with Ganfeng.

   

The Economist On Lithium - This Increasingly Precious Metal Powers Your iPhone, Tesla's Cars And NASA's Mars Rovers. 

  The Economist presents to us very interesting and deeply researched article on Lithium. Now this magic metal will be getting on the investor's radar screens and recent huge price spike in China will be the best advertisement for this Strategic Green Energy Metal. I will provide a few links for your research on what is actually behind this spike and why my outrages Lithium price prediction for 2016 is already so close.
  The key for everybody will be this opening paragraph from The Economist:

"SQM, Chile’s biggest lithium producer, is the kind of company you might find in an industrial-espionage thriller. Its headquarters in the military district of Santiago bears no name. The man who for years ran the business, Julio Ponce, is the former son-in-law of the late dictator, Augusto Pinochet. He quit as chairman in 2015, during an investigation into SQM for alleged tax evasion. (The company is co-operating with the inquiry.) Last month it emerged that CITIC, a Chinese state-controlled firm, may bid for part of Mr Ponce’s controlling stake in SQM, as part of China’s bid to secure supplies of a vital raw material."

  China already controls 75% of Lithium Hydroxide production which is used in Tesla Motors lithium batteries and is the largest Lithium Market in the world, now if CITIC will be able to get hold of that stake in SQM we are all going to see consequences very fast and this spike will become not just "local market disturbance", but the reflection of strategic value of Lithium for the Next Industrial Energy rEVolution. Another key fact for you to ponder: the cost of lithium as material in the lithium battery is below 3%.

 International Lithium is building vertically integrated lithium business with Ganfeng.

  

Lithium Technology Powers Your iPhone, Tesla's Cars And NASA's Mars Rovers.

  "Business Insider is taking lithium story to the mainstream investors. This market is very small, still under the radar screens of the majority of investors and masqueraded by the carnage in commodities. Obama's Clean Power Plan and China's Strategic Industry Development Plan will create the mass markets in electric cars and home energy storage allowing solar power to work 24/7. Lithium is at the heart of this technology empowering Green rEVolution.

  Lithium market is very opaque and real information is often hidden from the public among outrages claims and promotions from different companies and journalist just jumping on the hot subject. On this blog I try to bring you the best industry experts with their opinions and up-to-date developments in lithium market. Read more."

My Outrages Lithium Price Prediction Of $15k per MT Of LCE And Joe Lowry On China Lithium Market Upheaval.

Copyright Global Lithium LLC, used with permission.

  Joe Lowry makes very interesting observations about the dynamic in our Lithium Universe. China is the largest Lithium Market in the world now. Security of Lithium Supply becomes the most important element of your business plan, when market is growing exponentially. It is all happening even before Tesla Gigafactory is coming online with other Lithium Megafactories to follow. My prediction about $15k MT LCE prices in China now suddenly does not look totally outrages any more!

"Asia is taking the very important lead in this space as well. China is not only leapfrogging directly into the Lithium Energy Space with Electric Cars and Solar, but building the advanced materials base for this new Energy rEVolution. Panasonic, Nissan, Toyota, NEC, Sony, Samsung, Huyndai, LG Chem and others are staking its own place in electric cars now. China is the largest Lithium Market in the world already, moving to claim the largest Lithium Battery Producer title and Electric Cars in China will become the largest World's EV market early in the next year.

  Listen to that podcast, read the article about LG Chem and do your own research. Numerous companies are building Lithium Batteries facilities now in China: LG Chem, BYD, Boston Power (Ganfeng Lithium has 10% stake), Foxconn, Samsung, A123 - which will exceed even Tesla Gigafactory production capacity! 17 start ups only this year are trying to capitalise in lithium batteries market on the "War on Pollution" announced by China and state-level plan to build new strategic industry - Electric Cars. Read more."

International Lithium and Ganfeng: Chinese Lithium Prices Jumped Twice In October To $11,049/tonne.

  

  Now we can discuss the real situation in the lithium market and how the full blown shortage situation of Lithium looks like. China is rising and has become the centre of "Lithium Universe". International Lithium strategic partner Ganfeng Lithium put up its prices for a second time in the space of month last week to $11,049/tonne! With rising Lithium prices Ganfeng Lithium market cap is rising as well, now this giant from China has reached 2.3 Billion market cap. Industrial Minerals calls Ganfeng leading Chinese carbonate supplier and you can see the chart below reflecting the market situation in China. It will come as a shock for many: 

"Chinese lithium producer Jiangxi Ganfeng Lithium Co. Ltd increased the price of its lithium carbonate last week, marking the second rise in a single month.

The company raised the sale value of its material by nearly 17%, from Chinese renminbi (Rmb) 60,000/tonne ($9,470/tonne*) to Rmb 70,000/tonne ($11,049/tonne) - Industrial Minerals"

   Ganfeng has announced in China on its website establishing of $170 million credit line  to finance expansion of its production facilities, financing of acquired last year mobile lithium battery maker and investing in the development of raw material base. The security of supply is everything. International Lithium is building vertically integrated lithium business with Ganfeng.

Joe Lowry: Preliminary Look at 2015 Global Lithium Demand.

International Lithium: Mavis Lake Lithium And Tantalum Project, Canada.

  

  "With GM Bolt and Faraday Future unveiling at CES 2016, Lithium Technology is in the headlines these days and getting finally on the investor's radar screens. Today I would like to present International Lithium's  Mavis Lake Lithium and Tantalum project in Canada. Our J/V projects with Ganfeng Lithium: Avalonia in Ireland and Mariana in Argentina are better known: we are advancing another $4 million exploration programs on these projects now. Mavis Lake presents another very important opportunity for development of potential source of conflict free strategic commodities in politically stable Canada. We are talking here about the security of Lithium Supply for the West now. With our J/Vs with Ganfeng Lithium solidly on track for the development, we are concentrating now on the Strategic Partnership to build the Next Lithium Producer in North America. Read more."

International Lithium And Ganfeng Lithium Move Mariana Lithium Brine Project Forward In Argentina.

Mr. Kirill Klip, President, International Lithium Corp. comments, “We have always viewed Argentina as a favorable location for mineral exploration and development and have been able to operate in a mutually beneficial manner with the local people and governments. The results of the recent elections have managed to give foreign corporations greater confidence in the future of business and mineral resource development in Argentina. We welcome the change and look forward to working with the newly elected officials and advancing our Mariana lithium brine project in cooperation with our strategic partner, Ganfeng Lithium. Security of lithium supply is becoming more important as witnessed by recent price increases in China, all in advance of the completion of new battery production facilities announced by Tesla and other manufacturers. We continue to build a vertically integrated lithium business with Ganfeng Lithium to meet the future demand of lithium products that will address the increasing demands for lithium raw materials and chemical products.” Read more."

International Lithium Receives Notice of License Renewals for the Avalonia Lithium Project, Ireland

"Mr. Kirill Klip, President, International Lithium Corp. comments, “The Avalonia project joint venture, fully funded by strategic partner Ganfeng Lithium Co. Ltd., (“GFL”), could be of strategic importance to the European Union should a sufficient resource be identified. Clean fuel technologies for motor vehicles are becoming increasingly important to the European Economic Community to tackle climate change and the air pollution crisis in major urban areas. Lithium technology will play a major role when it comes to providing batteries for communication devices, electric vehicles and utility storage systems. Renewable sources of energy such as solar and wind power will also benefit from lithium battery technologies and become more commonplace as the problem of intermittency will be addressed providing steady power from these sources 24/7.” Read more."