Tuesday, 10 January 2017

Tesla Gigafactory Begins Battery Production: Lithium Supply Chain Goes All Around The Globe And Back To China.



We have another very important milestone for our Energy rEvolution. Tesla Gigafactory begins lithium battery production as planned by Elon Musk years ago. Another thing we have been discussing here for all these years is that there is no lithium under the floor of Gigafactory in Nevada. China controls now the market of lithium chemicals which are used to produce lithium cells. In a case of Tesla, Panasonic is still supplying lithium cells and buying its lithium materials from Chinese companies like Ganfeng Lithium. 





We are talking here about the security of lithium supply and market which is growing exponentially from the very low base of $1 billion in total sales in 2015. Now we have electric cars crossing the 1% of the sales of all new cars and attacking the exponential part of the adoption S-curve. Lithium market size will be driven by price and volume. 

The price of lithium in the finished battery is below 2% - 3%. Total volume last year was around 180,000 - 200,000 LCE T. Every 1% of increased share for electric cars in total auto sales demands new supply of 70,000 LCE T. China is talking about California style ZEV mandate with EVs to represent 8% of all new cars sales by 2018 and 12% by 2020! Last year we have just crossed 1.4% in China in sales for EVs... They are talking about EV market growth in China by 9-10 times in 3 years time.







‘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.

Maybe you missed it, but China is now “The Center of the Lithium Universe”. China is already the world’s largest electric vehicle market. BYD, the Chinese company backed by Warren Buffett, is the largest EV manufacturer in the world, thus the Chinese companies are producing the largest amount of lithium chemicals for the batteries required to make them. The market is booming, there are currently 25 companies making 51 models of electric cars in China. Over 500,000 EVs will be sold in China this year alone. By comparison, it took GM 7 years to sell 100,000 Chevy Volts since 2009 which is projected to be also the total of sales for BYD just in this year! Read more."



Strategic Partner Ganfeng Lithium To Increase Equity Ownership In International Lithium.





“I am very pleased that Ganfeng Lithium is reinforcing its strategic stake in International Lithium. Ganfeng is a worldwide leader in lithium materials production based in China. They provide not only the capital to advance our joint venture projects in Argentina and Ireland, but technology to facilitate potential production to their particular needs as a lithium end-user. Ganfeng holds 19 patents and is the only company producing lithium chemicals both from brine and hard rock spodumene sources” states Kirill Klip, President of the Company.

The International Lithium Global Material “Battery Grade” Producer Ganfeng Advantage.




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


Lithium Boom Continues To Fuel Chinese Majors.

  


  Industrial Minerals reports about Ganfeng Lithium and Tianqi Lithium from China and their incredible growth confirming my observations.  Read more.




Infographic:


"Lithium: Goldman Sachs estimates that a Tesla Model S with a 70kWh battery uses 63 kilograms of lithium carbonate equivalent (LCE) – more than the amount of lithium in 10,000 cell phones.
Further, for every 1% increase in battery electric vehicle (BEV) market penetration, there is an increase in lithium demand by around 70,000 tonnes LCE/year."










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



Forbes:


"Tesla’s Gigafactory began production on Wednesday, marking a major milestone that drew praise and excitement from just about everybody but Wall Street.
Goldman Sachs and Morgan Stanley said the facility coming online does little to change Tesla’s short-term financials and pointed out the firm recently missed its own Q4 forecasts, Bloomberg reports. Investors have pushed up Tesla’s stock more than 20% in the last month, largely anticipating the Gigafactory going live, but analysts are focused on profits.
The start of mass battery production is an enormous success for Tesla and will help the company roll out more energy storage products, and ultimately the Model 3 electric car. The $5B Gigafactory is still less than a third complete, but by 2018 experts say it will double the world’s production of lithium-ion batteries and make mass-producing electric cars a reality. [Bloomberg]"