Friday, 20 January 2017

Lithium Race: Audi To Launch 5 New Electrified Models In China, Including One With 500km Of Range.

It is getting crowded in China - everybody is rushing to make electric cars there. As we have discussed in the case of the whole VW Group - we are witnessing unprecedented disruption of the transportation industry with EVs climbing on the exponential part of the S-curve on one side and unprecedented transfer of the best technology for lithium batteries and electric cars to the largest market in China - on another side.  Volkswagen Group plans to produce 30 models of electric cars by 2025 in response to its emissions scandal. Now they are moving from talking to the actual walking. Lithium is the magic metal at the very heart of this Electric rEVolution.

International Lithium At Wentworth 2016 Presentation.

Lithium Race: Volkswagen Group Plans 8 Plug-in Electric Cars For China.

It looks like China is getting very fast "great again", at least in all things green. I do hope that Elon Musk will be able to save America from being "great again" with steam engines powered by "the clean coal". Now all automakers are anxious to move fast into China with their electric cars. China is The Centre of The Lithium Universe and has become the ground for mass scale testing of the most advanced technologies for the lithium batteries and electric cars. So far Chinese companies mostly were tapping in the very gracious subsidies of the Chinese government. 

These developments will put China in the lead not only in the numbers of electric cars sold but in R&D development as well after the best technology will be transferred from the West in exchange for the access to the largest auto market in the world. While the West will be debating "How can we have the Global Warming if the Weather is cold?", China will start making the best electric cars for millions facilitating The Switch.

Energy rEVolution And The Secular Bull Market In Lithium.

"Happy New Year everyone! Time is to check out what is in store for us in the coming hunting season. Lithium is in a secular bull market according to Chris Berry and now Galaxy will start M&A season by selling a stake in its "red hot" development in Argentina. We will have a lot of hype and nonsense in Lithium like in every bull market being born on this planet. Institutions will take their positions and start the "unbiased" education of their retail clients with the real push for this Next Big Thing in the mainstream. Retail investors will be primed for slaughter by the filthy promoters riding the wave of 100 and 1 new names in Lithium. Next phase will separate smart investors who will be making money from those who will be separated from their money. Your best guidance will be your own homework and guys like Joe Lowry and Chris Berry can give you a very good head-start.  

It is relatively easy this time. The Switch is happening, Energy rEVolution is the Next Big Thing and Lithium is the magic metal at the very heart of it. We have the World Just Before The Internet. You have just to avoid eToys and At Home and find Apple, Google and Facebook in this place...

At International Lithium, we will continue to build our Vertically Integrated Lithium Business with the giant from China Ganfeng Lithium. We will be learning from the best and think very hard how to build value for shareholders. The start is very simple: we are the largest shareholders in this business. Our Holding Company TNR Gold is on par with Ganfeng with its stake in ILC and I personally have around 10% in the Company. The rest of the magic can come with the very hard work. Happy New Year everybody! It is going to be another year of The Switch and a parabolic rise of Electric Cars climbing their S-curve.

Please note that in Chris Berry article Ganfeng Lithium and Tianqi Market Caps are in RMB, while the rest is in dollars. Read more."

The Switch.

"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. Read more."

Energy rEVolution: The World Just Before The INTERNET - Lithium’s Boom Year: 2016 In Review.



"AUDI AG announced a new deal with Chinese FAW Group to introduce a series of electrified vehicles as part of a 10-year plan to expand in China. As part of the plan, the company has committed to rolling out five new electrified vehicles in China by 2022.
The agreement was signed yesterday in Changchun by Rupert Stadler, CEO of AUDI AG, Jochem Heizmann, President of Volkswagen Group China, and Xu Ping, Chairman of Board of Directors of FAW Group.
“In the past 29 years, Audi and the FAW Group have written Chinese automotive history. Together we have established the premium market in China and have continuously advanced its development,” says Rupert Stadler. “Now we are once again setting a historic milestone by enhancing our successful partnership with a strong roadmap for the coming decade.”
“We are starting the next phase of our joint growth path in China. More than ever, our partnership is focusing on profitable, sustainable growth,” says Dietmar Voggenreiter, Board Member for Sales and Marketing at AUDI AG, with regard to the signing of the agreement in Changchun. “China is the leading market worldwide for electric mobility. With our e-tron initiative, we want to create a compelling premium offer of products and services here.”
In the next five years alone, Audi and FAW have agreed to produce five additional e-tron models locally and introduce them to the Chinese market – including purely battery-powered cars with ranges of more than 500 kilometers (310.7 mi).
With the Audi A6 L e-tron as first locally produced plug-in hybrid and the Q7 e-tron as import model, Audi will sell two electrified full-size models in China from this year on.
Volkswagen Group, for its part, plans to produce 30 electric or hybrid vehicles by 2025 in response to its emissions scandal."

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