Thursday, 12 December 2019

Powered by Lithium: Ganfeng Plugs BMW Into rEVolution.

Ganfeng Lithium is making news in Europe again announcing the signing of the 540 million euro deal to supply lithium to BMW Group for the next 5 years. Tesla rEVolution is claiming its victims. Time was lost by pedalling criminal "Clean DIEsel" instead of seriously moving into the electric future and now The Great Germans are facing their DIEselGate demons and cutting jobs by thousands. My heart goes to all the talented engineers and hard-working people in Germany who built iconic auto brands. Angry shareholders will be holding the bag with billions of stranded assets left as monuments to the ICE Age era. 

The ICE Age is over, Tesla is climbing to the top spots in sales and safety ratings. People are voting by their wallets and switching by millions to electric cars. The Switch is here. EVs are already cheaper to own and will be cheaper to buy very soon. BMW is finally waking up and making what looks like serious steps to introduce real electric cars worth BMW brand in the nearest future. Tesla Gigafactory 4 being built near Berlin will keep all auto execs in Germany on their toes and without any sleep for years to come. 

As we are discussing here, the brutal bear market in lithium is masquerading the ugly truth that industry is nowhere near to be ready to meet the growing exponential demand for battery-grade lithium chemicals. But not all lithium companies will be able to make it, only the strongest one can survive and prosper

The industry consolidation is ongoing as we speak and companies like the giant from China Ganfeng Lithium are taking control of supply from all the best projects they can find now. TNR Gold is holding the NSR Royalty on Mariana Lithium JV which is operated by Ganfeng and plugged into rEVolution without the pressure of the contribution of any additional capital. 

As we have discussed, the lithium market and juniors involved are so much hated now that it deserves a second look for all contrarians at heart. As always, do your own research and you will have to pick up the winners. You can find my posts on the links which can help you.

Lithium technology will power electric cars for years to come, but who can cross the desert now, when juniors are starving for capital and even majors are struggling with direction during the short term "glut of lithium" in China? Who will deliver 1M tonnes of lithium LCE per year starting in 2025? Who can afford to raise the needed capital and make this jump in the expansion of production facilities from 320,000 tonnes of LCE in 2018? I think that it will be safe to say that top lithium names will be the answer. Companies like a giant from China Ganfeng Lithium already have supply agreements with Tesla, BMW and Volkswagen. They have the staying power not only to survive lower lithium prices but further consolidate the market, as we have been discussing before.

Ganfeng Lithium continues its commitment to Argentina and has celebrated the closing of its $160M additional investment into Lithium Americas JV in September. TNR Gold holds NSR Royalty on Mariana Lithium project which is being developed by JV with Ganfeng Lithium as the operator and does not have to contribute any capital for the development. Ganfeng is expecting pre-feasibility and feasibility studies to be completed this year. Below you can find more information for your research.

Building The Green Energy Metals Royalty Company: TNR Gold Reports On Mariana Lithium Royalty Holding - Giant From China Ganfeng Lithium Advances The Project In Argentina.

(From the published in March 2019, Ganfeng Lithium's 2018 Audited Annual Report.)

As always, all readers must read carefully all disclaimers, do their own due diligence and study audited reports of all companies involved in Mariana Lithium project in their entirety. Now we can discuss what we know from the published Ganfeng Lithium's 2018 Audited Annual Report in March 2019, that Ganfeng is expecting pre-feasibility and feasibility study of Mariana Lithium project to be completed in 2019. And ILC has announced in its Audited 2018 FS which was published on April 30, 2019, that Ganfeng decided to propose a budget for Mariana Lithium Project of $10 million dollars for the first 6 months of 2019. Earlier this year Ganfeng has invested an additional $160 million dollars in the Lithium Americas in order to advance their Cauchari-Olaroz lithium brine projects in Argentina. The development of Mariana Lithium Project in Salta can benefit from all R&D and learning curve of Ganfeng's development with Lithium Americas in Argentina and, hopefully, avoid the costly mistakes of other lithium brine operators.

(From the published on April 30, 2019, ILC's Audited 2018 FS.)

Lithium Will Power Us For The Next 50 Years And Then Robots: Kirill Klip GEM Royalty TNR Gold Lithium Presentation October 2019.

"Kirill Klip, Executive Chairman of the Company commented, "We are very pleased to see that Ganfeng Lithium is advancing the Mariana Lithium project in Argentina towards further pre-feasibility studies. The Mariana Lithium preliminary economic assessment ("PEA"), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana's life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana Lithium and our NSR Royalty does not depend on the size of ILC's share in Mariana Lithium. The 1.8% Mariana NSR Royalty is an important part of TNR Gold's portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."

Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. Do Your Own Research.

Oil Is Still Big, Actually, It's Very Big. But Thanks To rEVolution Energy Security Is Not Only About Oil Anymore.

Securing raw material supplies for battery cells: BMW Group signs supply contract with Ganfeng for sustainable lithium from mines in Australia

Munich. As part of its electromobility expansion, the BMW Group is deepening its existing business relationship with Ganfeng Lithium Co., Ltd. based in Jiangxi (China). The two companies have signed a supply contract for the lithium needed as a key raw material for battery cells. “The projected order volume totals 540 million euros. In this way, the BMW Group is securing 100% of its lithium hydroxide needs for fifth-generation battery cells in its high-voltage batteries,” said Dr. Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. 
The contract is for a term of five years (2020 – 2024).

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