Saturday, 15 April 2017

The New Energy Plan And Lithium Race: Top 10 Surprisingly Good Electric Cars Made In China.

China is the real EV R&D center and the World's largest playground for all latest technologies promoting The New Energy and electric cars. China became the center of The Lithium Universe and controls lithium hydroxide market - the crucial chemical used in Tesla lithium batteries. Tesla's supply chain for the lithium batteries goes all around the world and back to China. We all are fascinated with Elon Musk and his bold investment in Tesla's $5 Billion Gigafactory, but there are more than $20 Billon dollars are invested now in Lithium Megafactories with the majority of them rising up in China. Mass production of lithium batteries is cutting costs very fast: up to 19% per year now - according to Bloomberg. Cheap lithium batteries change everything for electric cars and renewable energy. 

China is leading the world in Solar and Wind power generation and is the largest market for electric cars. Today we can see what kind of supercars China can already produce in electric space. There are more than 70 models of electric cars on sale already in China. Next step will be to lure the best EV technology into China in exchange for the access to the largest auto market in the world. All major automakers have announced JV programs for EVs to be made in China. And recently the best of them Tesla Motors has received the serious invitation to the Chinese EV party with "Chinese Facebook" Tencent buying 5% stake in the company. Next step will be the production facilities for mass market electric cars like Tesla Model 3 in China. It will be great for the company and it will be great for China which is choking on the cancer hazard pollution. 

While we are still discussing "how there could be the global warming when the weather is cold", "Reds are going Green" with the state level New Energy Plan. Security of lithium supply is the crucial element of this plan and Chinese companies are buying the best projects all around the world with the state level support from the government. 

Unfortunately, the same automakers who are pushing for EVs in China are still just lobbying for the relaxation of cancer hazard diesel emissions standards in the West and we have millions of illegal cars on our streets. "The Clean Coal" will be the same disaster like "The Clean DIEsel". The aftermath will be years and lives lost, transfer the best technology to China and Trillions of dollars in stranded assets left after this last war for the Empire will be lost without any single missile launch. Who needs Oil after all, when you can drive electric cars?

Warren Buffett's BYD Joins The Lithium Race To Secure The Supply Of The Critical Commodity For The Energy rEVolution.

The security of lithium supply is everything now for the major players from China targeting the exponentially growing New Energy markets which are fueled by the coming mass adoption of electric cars and Energy Storage for Solar and Wind power generation. This story is finally getting into the headlines and on the radar screens of investors. 

FT reports about BYD which is backed by Warren Buffett entering the lithium supply game with SQM from Chile. Their attempt not to depend solely on "The Big Lithium Top Five" and establish their own supply chain for lithium shows that nobody would like to depend on a goodwill of competitors even marching under the same flags. Vertically integrated lithium energy storage businesses are being built as we speak. 

The ugly truth is that last year lithium supply has grown only 14% while lithium prices have increased 74%. To simply call this situation as creating the culture of a cut-throat competition for the new sources of raw materials will be the dramatic understatement. The question at stake is literally the ability to get the production lines going.

"This supply chain for Tesla Gigafactory is going all the way around the Globe and back to China. Panasonic is buying its lithium chemicals from China. China is "The Centre of The Lithium Universe"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.

International Lithium And Ganfeng: International Cooperation Brings Big Lithium Hopes For Argentina.

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

Kirill Klip, Executive Chairman, International Lithium Corp.

The ongoing Green Energy rEVolution is hungry for resources. When "reds are going green", dragons are coming back into the commodity sector with an increased appetite. China is heading now the 4th Industrial rEVolution and very quickly building a manufacturing base for the 21st century. China's New Energy Plan has been carefully crafted to leapfrog the old technologies and straight into the post carbon world. China is leading the world now in Solar and Wind Generation capacity and the world's biggest market for electric cars is already in China. There are more electric cars sold now in China than in Europe and the US combined. To secure its geopolitical advance, "China will plow $361 Billion into renewable power generation by 2020."

Maybe you have missed it, but China became the Centre of the Lithium Universe. 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 and there are currently more than 25 companies making more than 70 models of electric cars in China. Over 500,000 EVs were sold in China last year alone. By comparison, it took GM 7 years to sell 100,000 Chevy Volts since 2009 which was eclipsed by the EV sales by BYD in just the last year! Read more."

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