Saturday 24 December 2016

Electric rEVolution: BMI Lithium Price Index In December Shows Prices Strengthening.


"Graphitelithiumcobalt and vanadium are the critical raw materials used in today's battery technologies.
Benchmark collects first-hand data from the active players in these industries with a goal to setting market prices and analysing, from the ground up, constantly changing supply and demand dynamics.
We build our knowledge through creating and maintaining long lasting relationships and by visiting the mines and plants around the world.
Benchmark believes spending time on the ground at operations from China to Chile is central to our education and understanding.
Our analysts also track the end market drivers of demand for these critical minerals and metals such as lithium-ion batteries, electric vehicles, stationary storage systems, and steel and aluminium production.
We also focus on new energy - wind and solar - applications that are increasing demand for batteries through the ability to store and manage power from these intermittent sources.
Disruptive technologies - electric vehicles, tablets, smart phones - and emerging markets - China, Africa, South America, India and South-East Asia - are also core to our coverage of these minerals that are fuelling a new battery powered, hi-tech era."

If you would like to learn the subject - start writing about it. Start sharing with the other people what you know. You can not really do it before you learn at least something about it. Then the magic comes - people start listening.  Our very small Lithium Industry is just before its exponential growth phase climbing on "the S-curve".  

In the summer of 2015, all Lithium Market measured in LCE was worth only $1 billion dollars in sales. Then by February with some prices tripling in China the Lithium Market became blipping on the radars in the City and on The Wall Street - traders get notice of something NEW with a "growth from $1 Billion to $4 Billon overnight." Serious money is coming now in the Next Big Thing. Put together the largest auto market in the world, Elon Musk, Warren Buffett and BYD; spice it all with cancer hazard ICE emissions and Volkswagen DIEselGate revelations - and you have The Switch in the making. 

What is it all about? It is as easy and beautiful as everything brilliant genius Steve Jobs has done,  who was bending Universe around him with his every new bright idea making its way to the market. The Switch. I call it an iPod moment. You take something everybody loves: like his or her music. You make it cool and all in one box - all YOUR music now is at your fingertips. People and their desire to have THEIR music all in one place and literally in the pocket is here. BOOM. HISTORY. DONE. Billions of customers are switching. The Switch has happened. Now you already got my drift. 

Even before Donald Trump has come out with his brilliant and brave idea to make America Great again (I still do hope that not as far back as reintroduction of slavery and that business approach will prevail with Solar and Electric Cars flourishing as the great business) few things in the land of Freedom were so sweet for so many of us just looking from far away in admiration. Bubble gum, Coca-Cola and Jeans - these simple things are making billions of kids happy even today. Now we are ready to start talking about Next Best Thing after the sliced bread and mortgage: the shiny, slick and beautiful. No not that girl next to the Car. We are all growing up in the end. Girls are growing up and playing with men, boys are growing up and playing with dolls and cars. We are talking about cars here...

I will throw a few numbers just to give you a teaser here. The rest is on this blog for those who are ready to learn. The cost of Lithium in your iPhone is $1 dollar, in Tesla's Lithium battery cost of Lithium is 2-3% in the price of the finished product. We are in a generational shift 2 to 7,000: 2 is the number of the batteries in your father's remote control, more than 7,000 is the number of lithium batteries in Tesla Model S. It takes 63 kg of LCE (Lithium Carbonate Equivalent) to build Tesla Model S 70 kWh battery. Every 1% increase in sales of Electric Cars as part of total auto sales brings new demand for 70,000 t of LCE. Total production last year was 160,000 -180,000 t of LCE. During all our humankind history 1,000,000 EVs were sold before 2015. This year alone we can get 1,000,000 electric cars sold. Worldwide we are still close only to 1% of Electric cars in total auto sales. BYD - EV automaker from China where Warren Buffett is holding a 10% stake, will sell this year 100,000 EVs, it took GM 7 years to sell the same amount 100,000 of GM Volts. China is talking now about California style Zero Emissions Mandate: 8% of all news cars to be electric by 2018 and 12% by 2020. Let's digest it for a minute. With sales of EVs now only above 1% mark, we are talking about the factor of 8X in  ... two years time and 12X increase in the number of electric cars produced in China by 2020! Now Goldman Sachs numbers can be really conservative: they are talking about 3 times increase in Lithium Demand by 2025. I am talking about the total disruption of $12 Trillion industries: 4$ Trillion Transportation and $8 Trillion Energy and Utilities. I am talking about all cars being electric very soon. 

Now you will better appreciate the following fact that International Lithium Strategic Partner Ganfeng Lithium has more than doubled its total sales in 2015 in just 9 months of this year!  We are talking here about Energy rEVolution and Lithium is the magic metal at the very heart of it. Only a few experts, as usual, do really know what they are talking about. Joe Lowry, Chris Berry and Andrew Miller from Simon Moores' Benchmark are taking the floor below.

   And The Switch ... The Switch is the coming tide when literally millions of people will be switching very fast (as fast as all those millions of EVs can be made) to the electric cars. GM Bolt will give us the first taste of what is coming. The first two electric cars priced below $40k and with a range of over 200 Miles will change everything. Tesla Model 3 will start the real flood of affordable electric cars which are just better than anything else at the same price from the ICE age. Despite all headlines about Electric Cars on my blog, 99% of all new cars are still powered by the last century technology of controlled explosions and by burning oil in different compositions while killing us all and our planet at the same time. Do you remember the 90s - The World Before The WWW and Information Revolution? Now we have 21st Century and Energy Revolution: The World Just Before The INTERNET.

‘China’ the Centre of the Lithium Universe.

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

(Please note that International Lithium is an exploration stage company and not producing any lithium materials yet. Company does not have any resources and/or reserves as it is defined by respective policies for disclosure by mining companies other than properly reported in its public filings on SEDAR) 

Please Note that International Lithium Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties in the Articles, News Releases or on the Links embedded in this blog post; you must NOT rely in any sense on any of this information in order to make any Resource or Value Calculation, or attribute any particular Value or Price Target to any Discussed Securities.

‘China’ the Centre of the Lithium Universe

Kirill Klip

President of International Lithium Corp.

"The recent Volkswagen scandal has once again shed light on polluting vehicles and the health hazard they pose to the public and environment. In hopes of ending this tainted legacy, governments have begun implementing regulations to phase out emission causing vehicles. Respectively, all major automakers have followed suit and pledged to build dozens of electric vehicles in years to come. Read more."

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