Thursday, 22 June 2017

The Switch And Lithium Race: Tesla Has Reached An Accord With Shanghai To Explore Production In China.




It is happening! Tesla comes to China, now the security of lithium supply will be in the headlines for the rest of the summer. We are at the tipping point for the lithium industry, the supply is not there to accommodate the exponential growth in EVs and Energy Storage space.





Awakening: Tesla Model 3 And The Hot Summer 2017 For The Lithium Supply Chain.






"Very slowly Lithium Industry is starting to get some attention from the investment crowd, but the real awakening is still ahead of us. This summer will be very hot for the lithium supply chain, and the first real test is coming. Tesla Gigafactory will start mass production of Tesla Model 3 batteries in July and 4 Lithium Megafactories are coming online in China.

Ganfeng Lithium has made a very interesting public disclosure in China about SQM "stopping a supply of Lithium Brine to Ganfeng in June". It is very difficult to judge the scope of this interruption in the lithium supply chain for Ganfeng at this moment, its reasons and when the situation will normalize, but the message is clear - the security of lithium supply is the critical issue for all the major players in this exponentially growing market. And the real test is still ahead of us, the auto industry is still talking about 5% - 10% - 15% of electric cars in total auto sales, but what will happen when all cars will be electric after 2025?

Update:

It looks like the change is affecting SQM's supply of concentrated brine to Ganfeng as raw material and changes in import and export policies in Chile demand to produce high value added products in the country. These products will cut the margins for converters - producers of lithium chemicals from raw materials like lithium brine. Argentina is coming to the front line of lithium brine projects developments now.

I expect this trend to be continued, lithium is taking its geopolitical place now and countries hosting these deposits will move up the value chain producing lithium chemicals, batteries and EVs finally. The recent visit of Tesla's officials to Argentina is showing the dramatic change in the attitude to the lithium supply. EVs and ESS producers will have to migrate to the countries with resources to feed Energy rEVolution. International Lithium's JV operations with Ganfeng attract a lot of interest as an entry point in the building of vertically integrated lithium business with one of the world's top lithium producers and we are examining these strategic opportunities. Read more."







Tesla Officials Visit Argentina’s Governor Of Salta For Solar And Storage Projects And Sourcing Lithium.





ElectTrek reports that "salt on the salad'": this is how Elon Musk has described lithium before - must be very important for Tesla's digestive system after all. I am writing here extensively about the coming control of the Lithium supply by Chinese companies who are very aggressively buying all the best lithium projects worldwide. It is very difficult to pretend anymore that any lithium will be coming from any signed by Tesla agreements with some junior miners in the nearest future. Lithium cathode is still produced by Panasonic for Tesla Gigafactory. 




Another part of this story is the rising price of lithium in China again. Last year we have seen only 14% rise in lithium supply and prices have increased by 74%. In December, Benchmark Minerals has reported that LCE (Lithium Carbonate Equivalent) was priced below $15k/T and Lithium Hydroxide (the particular lithium based chemical which is used in Tesla batteries) was around $18k/T. Last week I have received reports that in Shanghai LCE was priced at $18k/T and Lithium Hydroxide was at $22k/T. Today there are reports that LCE is already pushing $19k/T. It is all happening just before 4 major Lithium batteries Megafactories will be coming online in China this year and Tesla will move into the mass market stage with the production launch of Tesla Model 3 in July.





As you know, I have been preaching for years that security of lithium supply will be the most important factor determining the competitive advantage among different producers of critical raw materials for the Energy rEVolution. This Lithium Race will have the very far-reaching geopolitical implications. Now it looks like that Tesla is realizing that there is no secure supply of lithium for its massive expansion of operations from the underneath of Gigafactory floor in Nevada. Even if Panasonic is producing cathode for lithium cells which are made at Tesla Gigafactory in Nevada the supply chain is going all over the globe and back to China.





The real test to the market and supply chains for Energy rEVolution will come with the coming tide of Electric Cars and the following tsunami of Energy Storage. Bloomberg has recently reported that there will be more than 120 models of electric cars by 2020 and you should not be surprised as we have discussed here before that there are more than 70 models of electric cars on sale in China already. The next few years will determine who will have the keys to the new Energy rEVolution and control the supply chains. Hungry Dragons are flying high already and mostly in China, the question remains who and how will feed them without fear of being burnt in the process. 






Bloomberg:

Tesla has reached an accord with Shanghai to explore production in China


Wednesday, 21 June 2017

Tesla's Energy rEVolution: Elon Musk’s Grand Plan To Power The World With Batteries.




Elon Musk TED Talk: We Need 100 Gigafactories To Go 100% Renewable Energy And Tesla Will Announce 3 or 4 This Year.





Elon Musk was making his Ted talk recently in Vancouver and you can experience his ability to distort reality in our Lithium Universe first hand. Among very many mind-boggling ideas he reiterated that we will need 100 Tesla Gigafactories to move to 100% Renewable Energy for the whole world and Tesla will announce 3 or 4 new Gigafctories this year! 






Tesla Officials Visit Argentina’s Governor Of Salta For Solar And Storage Projects And Sourcing Lithium.





ElectTrek reports that "salt on the salad'": this is how Elon Musk has described lithium before - must be very important for Tesla's digestive system after all. I am writing here extensively about the coming control of the Lithium supply by Chinese companies who are very aggressively buying all the best lithium projects worldwide. It is very difficult to pretend anymore that any lithium will be coming from any signed by Tesla agreements with some junior miners in the nearest future. Lithium cathode is still produced by Panasonic for Tesla Gigafactory. Read more




Another part of this story is the rising price of lithium in China again. Last year we have seen only 14% rise in lithium supply and prices have increased by 74%. In December, Benchmark Minerals has reported that LCE (Lithium Carbonate Equivalent) was priced below $15k/T and Lithium Hydroxide (the particular lithium based chemical which is used in Tesla batteries) was around $18k/T. Last week I have received reports that in Shanghai LCE was priced at $18k/T and Lithium Hydroxide was at $22k/T. Today there are reports that LCE is already pushing $19k/T. It is all happening just before 4 major Lithium batteries Megafactories will be coming online in China this year and Tesla will move into the mass market stage with the production launch of Tesla Model 3 in July.





As you know, I have been preaching for years that security of lithium supply will be the most important factor determining the competitive advantage among different producers of critical raw materials for the Energy rEVolution. This Lithium Race will have the very far-reaching geopolitical implications. Now it looks like that Tesla is realizing that there is no secure supply of lithium for its massive expansion of operations from the underneath of Gigafactory floor in Nevada. Even if Panasonic is producing cathode for lithium cells which are made at Tesla Gigafactory in Nevada the supply chain is going all over the globe and back to China.





The real test to the market and supply chains for Energy rEVolution will come with the coming tide of Electric Cars and the following tsunami of Energy Storage. Bloomberg has recently reported that there will be more than 120 models of electric cars by 2020 and you should not be surprised as we have discussed here before that there are more than 70 models of electric cars on sale in China already. The next few years will determine who will have the keys to the new Energy rEVolution and control the supply chains. Hungry Dragons are flying high already and mostly in China, the question remains who and how will feed them without fear of being burnt in the process. 






International Lithium And Ganfeng Mariana Lithium JV Exploration Target And Indicated Resource Of 1.25 M T of LCE.






Exploration target at Mariana Lithium, Argentina. 
International Lithium NI 43-101 report.






Kirill Klip, Executive Chairman of ILC stated, "We are very pleased with the results of the maiden resource estimation at the Mariana lithium potash brine project, together with our strategic partner Ganfeng Lithium. This project is now moving from an early exploration stage to an advanced exploration stage where it will be more easily compared to other lithium brine projects in Argentina. We are looking forward to follow up with Ganfeng Lithium on the recommendations of this report in order to ensure the rapid advancement of the project towards the pilot stage and to conduct further feasibility studies that will investigate the economic viability of the Mariana project."



LEGAL DISCLAIMER

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




Tuesday, 20 June 2017

InvestorIntel: International Lithium CEO At CTMS2017 Panel on Lithium Exploration and M&A Market.



"Ganfeng Lithium has finally closed its deal with Lithium Americas and now Argentina will be becoming the real Powerhouse of Energy rEVolution. Lithium is the magic metal at the very heart of this Energy rEVolution and International Lithium is Lithium Strategic Investments and Royalty Company which is plugged-in the most dynamic EV and Energy Storage markets in China with partners like a giant from China Ganfeng Lithium. Read more."






Energy rEVolution And Lithium Race: International Lithium Presentation May 2017.


International Lithium And Ganfeng Mariana Lithium JV Exploration Target And Indicated Resource Of 1.25 M T of LCE.






Exploration target at Mariana Lithium, Argentina. 
International Lithium NI 43-101 report.






Kirill Klip, Executive Chairman of ILC stated, "We are very pleased with the results of the maiden resource estimation at the Mariana lithium potash brine project, together with our strategic partner Ganfeng Lithium. This project is now moving from an early exploration stage to an advanced exploration stage where it will be more easily compared to other lithium brine projects in Argentina. We are looking forward to follow up with Ganfeng Lithium on the recommendations of this report in order to ensure the rapid advancement of the project towards the pilot stage and to conduct further feasibility studies that will investigate the economic viability of the Mariana project."



LEGAL DISCLAIMER

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





International Lithium Announces Multiple High-Grade Lithium Pegmatites Intersected at Mavis Lake Project, Ontario, Canada





“We are very pleased with the results Pioneer have achieved at Mavis and look forward to continued exploration success,” stated Kirill Klip, CEO of ILC. “Our concept of the Upper Canada Lithium Pool is moving forward and ILC has another lithium project in its portfolio moving toward a more advanced exploration stage. This success supports our strategy utilizing strategic partnerships to advance projects with the ultimate goal to secure lithium supply for the ongoing electrification of our transportation and energy storage applications.”



Lithium Race Ludicrous Mode: Tesla To Set Up Factory With Local Partner In Shanghai.




Our Lithium Race is moving into the Ludicrous Mode with Tesla being close to reaching an agreement to produce vehicles in China for the first time, reports Bloomberg. All lithium producers in China are trading much higher on the news today. International Lithium is well positioned with its strategic partner Ganfeng Lithium to participate in this disruption of transportation and energy sectors. Electric Cars are coming much faster than a lot of people are anticipating and the real struggle to secure the lithium supply for this Energy rEVolution has only begun now.

"Ganfeng Lithium has finally closed its deal with Lithium Americas and now Argentina will be becoming the real Powerhouse of Energy rEVolution. Lithium is the magic metal at the very heart of this Energy rEVolution and International Lithium is Lithium Strategic Investments and Royalty Company which is plugged-in the most dynamic EV and Energy Storage markets in China with partners like a giant from China Ganfeng Lithium. Read more."






Tesla Officials Visit Argentina’s Governor Of Salta For Solar And Storage Projects And Sourcing Lithium.





ElectTrek reports that "salt on the salad'": this is how Elon Musk has described lithium before - must be very important for Tesla's digestive system after all. I am writing here extensively about the coming control of the Lithium supply by Chinese companies who are very aggressively buying all the best lithium projects worldwide. It is very difficult to pretend anymore that any lithium will be coming from any signed by Tesla agreements with some junior miners in the nearest future. Lithium cathode is still produced by Panasonic for Tesla Gigafactory. Read more.


China Plus:

Tesla to set up factory with local partner in Shanghai


"American electric carmaker Tesla is seeking local partner in China, and is reportedly close to reaching an agreement to produce vehicles in China for the first time, reports Bloomberg.

The agreement reportedly being worked out with municipal authorities in Shanghai will enable Tesla to build factory in Lingang Development Zone. Under Chinese regulations, Tesla needs to cooperate with at least one local partner to set up joint venture.
Elon Musk, CEO Tesla, Inc., said that setting up a factory is a crucial step for gaining access to the Chinese market. Tesla's revenues in the Chinese market doubled in 2016, reaching over USD 1 billion.
Locally produced vehicles can avoid the 25% import tax which currently makes Tesla's Model S sedans and Model X sport utility vehicles much more expensive in China than in the U.S.
Chinese authorities have made new-energy vehicles a priority, classifying them as a strategic emerging industry, with hopes of increasing sales of hybrid vehicles and fully electric cars 10-fold in the next decade.
China surpassed the United States to become the largest non-emission auto market in 2015.
Chinese internet firm Tencent Group bought a 5% stake in Tesla for USD 1.8 billion in March, 2017."

Saturday, 17 June 2017

The Secrets Of Tesla Model S. The Switch: EVs And Lithium Race - How Does An Electric Car Work?



It is time to educate ourselves why electric cars will be taking the world over in the next few years by storm. The auto industry is still talking about just some percentage of total auto sales being electric. We are talking here what will happen if all cars will be electric and much faster than you think? The total disruption of transportation industry and energy with utilities are next. Exponential growth will be driven by mass volume lithium batteries production with the dramatic reduction in total cost of electric cars.


Elon Musk TED Talk: We Need 100 Gigafactories To Go 100% Renewable Energy And Tesla Will Announce 3 or 4 This Year.



The real test to the market and supply chains for Energy rEVolution will come with the coming tide of Electric Cars and the following tsunami of Energy Storage. Bloomberg has recently reported that there will be more than 120 models of electric cars by 2020 and you should not be surprised as we have discussed here before that there are more than 70 models of electric cars on sale in China already. The next few years will determine who will have the keys to the new Energy rEVolution and control the supply chains. Hungry Dragons are flying high already and mostly in China, the question remains who and how will feed them without fear of being burnt in the process. Read more.


Lithium Race: Electric Car Sales Are Surging And Number Of EVs On The Road Rocketed To 2 Million.




Bloomberg reports about the surge in sales of electric cars and it is happening before the real mass market phase has even started. The number of EVs on the road rocketed to 2 million and it is only the beginning. It took us all human history to get to 1 million of electric cars on the road by early 2015 and only a year more to reach 2 million of EVs! Now you can see what I am talking about: 30% EVs market penetration by 2030 is considered very ambitious, what will happen to lithium supply if all cars will be electric by that time? 

UBS has moved their estimation of cost parity between EVs and ICE cars from 2021 to 2018 now. This transition is happening very fast and you have to listen to Elon Musk to understand it, but then look at China to really see it. Megafactories to produce lithium batteries are mushrooming all over the place there.

Ganfeng Lithium has finally closed its deal with Lithium Americas and now Argentina will be becoming the real Powerhouse of Energy rEVolution. Lithium is the magic metal at the very heart of this Energy rEVolution and International Lithium is Lithium Strategic Investments and Royalty Company which is plugged-in the most dynamic EV and Energy Storage markets in China with partners like a giant from China Ganfeng Lithium. Read more.






Tesla Officials Visit Argentina’s Governor Of Salta For Solar And Storage Projects And Sourcing Lithium.





ElectTrek reports that "salt on the salad'": this is how Elon Musk has described lithium before - must be very important for Tesla's digestive system after all. I am writing here extensively about the coming control of the Lithium supply by Chinese companies who are very aggressively buying all the best lithium projects worldwide. It is very difficult to pretend anymore that any lithium will be coming from any signed by Tesla agreements with some junior miners in the nearest future. Lithium cathode is still produced by Panasonic for Tesla Gigafactory. Read more.



Friday, 16 June 2017

Lithium Race: Tesla In Talks With India To Help Eliminate All Fossil-Fuel Cars By 2030.



With this kind of developments all lithium supply and demand models adopted by the industry can be thrown away. Electric cars are coming much faster than a lot of people think. The largest auto market in the world in China goes electric with millions of EVs being sold in years to come and India: the third largest auto market in the world - is talking about all cars being by 2030! Security of lithium supply is everything now for the mushrooming Lithium Batteries Megafactories.


International Lithium – The Chinese Bet On Salares.

  
Lithium Salares. InvestorIntel.


  Christopher Ecclestone has written a piece with the depth of knowledge of lithium industry I have not seen for a long time.  He was one of the very first analysts covering the Lithium 1.0 Rush in 2008-2009. TNR Gold, our holding company which now has over 20% stake in International Lithium, was holding all lithium assets which were later spun off in the IPO with Ganfeng Lithium. TNR Gold went from 3 cents that year to over 30 cents in 2009.  
  The first hype came and was gone with numerous companies along with it, only the strongest have survived. Now we have the solid fundamentals about the Lithium 2.0 Launch. Electric cars are here and EVs for the mass market are coming now in the fast lane onto our streets. International Lithium is still very tightly held with TNR Gold holding over 20%, Ganfeng Lithium at 15% and myself with just under 10%. I would like to use this opportunity and thank all ILC Team and our partners helping us to build International Lithium as one of the most active lithium exploration and development companies in the world. We have CAD $17 million budgeted for the development of our projects on 3 continents. Today you can find more information on our company and our strategic partner Ganfeng Lithium.
  Please carefully read my legal disclaimer and never make any investment decisions without consulting with your preferred qualified financial advisor. You can find all latest information about our company on International Lithium website and in filings on SEDAR and SEDI. Read more.