Friday 7 April 2023

Energy rEVolution, Tesla Master Plan Part 3 and Hungry Robots: Will There Be Enough Lithium for All?

 

Tesla unveiled its Master Plan Part 3 and all investors in the Lithium Universe must watch the brilliant video from Tesla Daily and read it very carefully. 


Tesla Master Plan Part 3

"Today, we are publishing Master Plan Part 3, which outlines a proposed path to reach a sustainable global energy economy through end-use electrification and sustainable electricity generation and storage. This paper outlines the assumptions, sources and calculations behind that proposal. Input and conversation are welcome." (Tesla)



Rumours ignited by Goldman Sachs and Ark Invest about the coming tsunami of the Battery Grade Lithium Supply are greatly exaggerated. We have discussed in depth the problems with secure supply lines for Battery Grade Lithium and today you can appreciate the magnitude of this Tesla Energy rEVolution and exponentially growing demand for Energy Storage presented in Tesla Master Plan Part 3. 



Lithium is the magic metal at the very heart of the Energy Transition and Electrification of our Transportation and Energy Industries. Some thoughts and ideas are worth repeating before they can be digested properly. And we are not even talking yet about hungry robots running wild on FSD in our neighbourhoods and rifling through garbage for old Lithium batteries.  




Last time Goldman Sachs "was worried" about your investments in the Lithium Universe and called the coming tsunami of the new Battery Grade Lithium Supply they were buying stakes in the Lithium companies at the same time while retail was selling in panic. 


The problem with all estimations for the future supply in mining is the difficulty of the process to put new mining operations in place, particularly in a sustainable way. In the case of Lithium, we are dealing not only with mining operations but with literal "chemical soup", particularly in the case of Lithium Brine Operations. Every single project has a unique chemistry. Only a few companies in the world were able to put online successful Lithium operations.
 

This is where science meets Wall Street and Bay Street hype. Lithium projects are always delayed, they are never on budget and only a few companies managed to organise operations to reach the previously announced annual capacity production of Battery Grade Lithium.


Investors must remember that a lot of "Lithium companies" have only the word Lithium in their name, but not any real Lithium resources which can be produced economically in the next 10 years. The flood of money following the new Lithium all-time high of over USD$85,000 in China last year was chasing Bay Street Lithium Dragons all over the junior mining space. 



As we discussed before in my video, Lambs are getting slaughtered while chasing Lambos: "Chasing Crypto Dragons And The World Just Before The Internet: "I Pump, But I Don't Dump" - Tesla Energy rEVolution and Lithium. Always carefully check all your dinner invitations - you could be the main dish to be served.


Now, these Dragons flew away with investors' money following Crypto Dragons. A lot of investors will be burnt again, and retail will start chasing the new wild dreams to become rich overnight. Memories about "One Thousand and One" junior mining Lithium projects will stay as monuments for the happy times. 


Dreams about Lithium meet mining realities. Only a few giant companies will be able to withstand Goldman Sachs and Ark Invest manipulations with their worries about Lithium oversupply. They will continue increasing their domination by acquiring the best Lithium projects. 


They will decide in the end what and when put into production and who will be allowed to buy at a particular price Battery Grade Lithium.  Smart money controls bottlenecks. Disruption of USD$12 Trillion in the Energy and Transportation industries depended on the USD$10 Billion Lithium Market. Price shocks were imminent and new ones will be coming next.


In my personal view, demand for Battery Grade Lithium will exceed estimations as The Switch will go into the supercharged EVs Mass Market phase. The new drivers will be electric commercial fleets and Energy Storage following the massive declines in the cost to produce Solar and Wind Energy. Energy Storage available for scaling up is the missing part of Decentralised Energy Generation.




New Lithium discoveries in India and Iran deserve a few observations as well. Wonderful news for Idia. Wonderful news for China. Now sceptics fuelled by the DIEselGate fumes have an answer - there is enough Lithium to make a transition to 100% Electric Cars. Others will start to learn what it takes to put this treasure into your batteries in 15 years... Now let's dive into the demand side for lithium.


"Zachary Shahan CEO and Chief Editor of the brilliant and highly recommended media company "CleanTechnica" is putting the new all-time highs for Lithium price into the perspective of the big picture of the ongoing Tesla rEVolution and The End of the ICE Age.
"Benchmark Mineral Intelligence, a leading entity tracking and analyzing lithium market information, concludes that the lithium market needs to scale up to 25 times or more of the 2021 level by 2050." CleanTechnica
Now you can better understand my slide "100M T of Lithium LCE Needed by 2050" from Lithium Will Power Us For The Next 50 Years And Then Robots: Kirill Klip GEM Royalty TNR Gold Lithium Presentation."


"Looking closer, the analysts forecast 2.9 million tonnes of LCE (Lithium Carbonate Equivalent) a year by 2032. Consider that, in total, 2.7 tonnes of LCE were produced from 2015 through 2022 so far. In 2040, one month’s lithium needs are expected to be equal to all of the battery-grade lithium produced in 2021." CleanTechnica

 

 
"Due to the technical complexity, only the strongest Lithium companies will be able to develop new projects and achieve a significant production increase of Battery Grade Lithium. The whole industry produced only 369,000 T LCE of Lithium in 2020 and now we have to jump first to over 1 million T LCE by 2025. Ganfeng's Chairman is talking about 3 million T LCE annual demand by 2030 and Canaccord Genuity estimated that only Tesla will consume 2.7 million T LCE annually by 2030."

 


Discussing the projections for Lithium demand, we should mention the latest estimate from Albemarle as well, the largest Lithium producer in the world. They are estimating a demand of 3.7 million T of LCE annually by 2030. 


Will these projections for Lithium demand based on the exponentially growing sales of Electric Cars be materialised? Yes, I do believe so and all these links on my blog allow you to go very deep into the rabbit hole and find out why all cars will be Electric and much faster than a lot of people are anticipating it.


I personally believe that all these projections will be proven wrong to the upside. Tesla is talking about the new generation of Electric Cars, hopefully, it will be the cheapest on offer. Players like Stellantis who are fighting for their own sustainable future, can bring very healthy competition and leapfrog into the latest best battery and powertrains technology available with bold investment decisions. All we need now for the mass market of Electric Cars to make ICE Age obsolete is to have a USD$20,000 BMW Series 2 style Electric Car with 200 miles range.


Tesla Investors Day confirmed my personal observations on the potentially accelerating exponential growth of Electric Cars. We are talking here about The Switch when millions of people are switching to Electric Cars. The demand for personal freedom and mobility is already here. Now Electric Cars are cheaper to own and they will become cheaper to buy very soon than any comparable ICE Age monsters. EVs are taking over our streets and parking lots one by one. 


Today we are only starting to talk about Energy Storage Systems being implemented on a scale which allows us to move really fast forward into decentralised Energy Generation based on Solar and Wind. Elon Musk and Tesla Team are presenting their Master Plan for a sustainable plentiful future on Earth.

All investors in our Lithium Universe must watch his video from Tesla Investor Day very carefully. Elon Musk presented the most important - Tesla Team and the incredible progress achieved by this Team in creating "Machines Building Machines". 



Tesla is already light years away from any competition and moving in the ludicrous mode accelerating Nicola Tesla Energy rEVolution towards a plentiful sustainable future for the generations to come on Earth. Every new Gigafactory, "Machine Building Machines" is moving us closer to this very noble destination for the human race.
 


"Elon Musk has been talking for years about Lithium "as salt on a salad". It looks more like water in the desert needed for Tesla to continue to grow to the sky. It took only 10 months to build Tesla Gigafactory 3 in Shanghai. It can take up to 10 years to build up a lithium mine depending on the type of resource."  


"We have a very important confirmation for all TNR Gold shareholders from Salta, Argentina. According to the publication of Cronica del NOA about the meeting between Ganfeng Lithium and the Governor of Salta Gustavo Saenz: "The Mariana project, which began construction last June, will start producing in 2024 an estimated 20 thousand tons per year of Lithium Chloride".

"We have our first great news delivered from Argentina for all TNR Gold shareholders in 2023. El Pregon Minera reports "The Operational Phase of Mariana Project Began"!

 


"For all TNR Gold shareholders, the following chart from the Ganfeng Lithium presentation is particularly important. The production facilities of 20,000 T of Lithium Chloride per year are called "Phase 1".

 


TNR Gold is plugged into Tesla Energy rEVolution with our Royalty Holdings on the Mariana Lithium Project with Ganfeng Lithium. I consider my personal investment in TNR Gold, as a unique entry point into the state-of-the-art vertically integrated lithium business being built by Ganfeng Lithium for the 21st century. 


We are building The Green Energy Royalty and Gold Company and participating in the creation of secure supply lines feeding The Switch and Tesla Energy rEVolution.


On my blog following the links below, you can find more information about TNR Gold Corp. and our Royalty Holdings. Do your own research, read all disclaimers, as usual, and stay safe and prosper. Join rEVolution!


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