Wednesday, 29 June 2016

After The BREXIT: Stop DieselGate And Dump The Pump - Elon Musk Presents Electric Tesla Model 3.



  Her Majesty the Queen has reassured everybody yesterday: "Well, I am still alive". Now more people believe that there is life after the BREXIT and FTSE is gaining almost all lost ground from the last week. Smart people have managed to buy more Tesla  shares on the cheap and the price is crawling back over $200 again. 
  Now we have to find the strong woman to make the UK the Great Britain again. My vision for the UK is the one of Singapore and Switzerland squared with the free market ruling the lives of proud hard working people governed by uncorrupted politicians. I guess that this dangerous combination for the status quo will never really happen, but we can try at least with the easy three-step plan: government cuts corporate taxes, introduces one page 15% flat personal tax and everybody starts to work really hard;  Pound is backed by Gold and New Energy Plan is unleashed based on Renewable Energy and Electric Cars.  If China can build from scratch its New Energy strategic industries of Solar and EVs why the UK can't? Now with corrupted EU politicians out of the scene in the UK, we can stop DieselGate for real. 





  The Great Britain starts building the manufacturing base for the 21st century based on Solar Power Generation, Energy Storage, Lithium Technology and Electric Cars. All sales of new diesel cars are banned immediately and all petrol cars from 2020. Millions of new working places are created, Britain becomes The Great again and starts to export all over the world its goods and services, trade is booming backed by Gold pound. People are paying 15% flat tax - because it is cheaper than run from it. I guess that I better stop dreaming - it is not happening. So you all better check what will happen when $12 Trillion industries are finally disrupted and we all start buying Chinese Electric Cars.  
  There is still a small chance that my dream can come true for the UK and electric cars are coming anyway: they are just better and very soon will be cheaper. We have just a chance to make the UK the Great Britain again. Elon Musk is talking how it could be done and below are some of my thoughts about the far-reaching implications of this vision.





Lithium 2.0 Launch: Security Of Supply - Galaxy Resources To Buy General Mining In Lithium Takeover.




  "This chart of lithium price in China is keeping awake at night very many people now in our very small industry. Quite a lot of them have totally missed the launch of Lithium 2.0 and now the security of supply is the major geopolitical issue. Tesla is still relying on Panasonic to supply lithium cells and a lot of people are relying on the "Lithium Found in Nevada" under Tesla's Gigafactory floor.
  Ganfeng Lithium: $4.5 billion giant from China is the strategic partner of International Lithium and now financing two of our J/V operations in Ireland and in Argentina. We are going where Lithium is and not just the hype around it. As we have discussed before, Lithium 2.0 is now for real as we have the real electric cars finally on the road and GM Bolt and Tesla Model 3 bring us mass market for electric cars.  Cheap lithium batteries change everything. Exponential growth in EVs sales is following by deployment of Energy Storage now.
  This Lithium M&A is pointing out another very important quality of Lithium 2.0 Launch: separation of dreams from the real people with the real projects, capital and technology to put them forward. There are only very limited number of quality lithium projects and even less capable teams with access to the capital and technology, like in the case of International Lithium and Ganfeng.
  Galaxy is back from after the death experience and moves into the "New Lithium Top Six" taking over the "Old Lithium Big Three". Albemarle, SQM and FMC are being chased by very aggressive Ganfeng Lithium and Tianqi from China. Now we can add Galaxy to this very small space for investors to play around with the security of lithium supply for the future when all cars will be electric. That chart of lithium price shows what is happening when in the last 5 years out of 80k T of LCE expected new production annually only 18k T was put on-line and when Gigafactory and Megafactories are only coming on. 
  Now is time to check out the Gigafactories Game of Lithium Demand: 

Before we were talking about: 

1. Tesla Gigafactory 1 with 35 GWh and cost $5bn in Nevada, US.
2. LG Chem with 7 GWh and cost $0.5bn in China.
3. FOXCONN with 15 GWh and cost  $0.81bn in China.
4. BYD with 20 GWh in China - Warren  Buffett owns a stake in BYD, leader of EV sales in China.
5. Boston Power 10 GWh in China - Ganfeng Lithium ILC partner owned 10% of Boston Power.

Total: 87 GWh - a point of reference: total world lithium batteries production in 2013 was 35 GWh.

Now we have to add here:

- 17 lithium battery start-ups in China, totally unquantifiable number and I will leave it out as speculative. 

6. BYD plants in Brazil and Argentina.
7. Panasonic in China.
8. LG Chem in Europe.
9. Mercedes in Europe.
10. A123 in Europe.
11. BMZ with 30 GWh planned capacity in Germany, Europe.
12. Volkswagen with $11.2 cost planned in Germany, Europe.

Total: more than 117 GWh of new lithium batteries capacity. 

  Now you can appreciate that my scenario of lithium demand doubling within next 5 years as the conservative one. Only Tesla with its plan of 1 million EVs produced by 2020 will consume at least 60 GWh of lithium batteries capacity assuming the average of 60 KWH batteries per EV. Knowing the Elon Musk's maniacal insistence on producing the most of all components in-house, we can add Gigafactory 2 in Europe as well to the list above.
  Where will all this lithium ome from? This is the very good question to ask the best experts at coming Benchmark Minerals Intelligence Lithium Batteries Supply Tour 2016, which will start in London on June 6th at UBS. I will give you a teaser and few links on this blog to dig out your own conclusion.  Albemarle is the top lithium producer now. SQM is struggling with political issues, FMC is struggling with lithium production and both are producing Lithium for less than 20% of revenue. It means that even if you can technically produce more, you have to sell 80% more of other products as fertilisers as well. Ganfeng and Tianqi are taking the market by the storm and both are in fierce competition. Now Tianqi controls Talison with Albemarle (Albemarle has acquired Rockwood Lithium) and Ganfeng is buying lithium spodumene from Talison and lithium brine concentrate from SQM. It is not very well constructed base for the exponential growth and at AGM on 21st of September 2015 Ganfeng Lithium has officially informed its shareholders: "its major risk is the security of lithium supply." Ganfeng has invested in Neometals and approved budgets for International Lithium J/V projects in Ireland and Argentina. Ganfeng owns 15% stake in International Lithium. The presentations below will provide you with more initial information for your due diligence.  Read more."


International Lithium At Wentworth 2016 Presentation.




CEO-Roaster With International Lithium Corp.: Building A Green Energy Metals Royalty Company.




  It took International Lithium 7 years of building its Lithium business and 5 years of partnership with Ganfeng Lithium: $4.5 billion market cap giant from China - to receive this acknowledgement to celebrate our 5th IPO anniversary: Watch the video."


"Ganfeng has a strong commitment to supply Lithium product to various industries worldwide,” stated Ganfeng’s Director, Wang Xiaoshen, “so we clearly have a vested interest in these projects and have been very hands-on in the evaluation of ILC’s properties. Our company is the only one in the world that has commercial production capacities to extract Lithium from both brine and spodumene, and we continually implement cutting-edge technologies to our processes. I feel confident that this is a fit for our operations and the potential these projects hold."





Race For Renewable Energy Technologies Charges Lithium Market. Chinese Lithium Leader Secures Supply Sources.







  Here is the link to answer all your questions why Lithium will power us for the next 50 years and after that Robots:



Lithium-Air Battery Breakthrough Will Make Diesel And Petrol Cars Obsolete.















Please carefully read my legal disclaimer, nothing on this blog represents investment and/or tax advice. Please always consult your qualified financial adviser before making any investment decisions.