Thursday 24 August 2017

Lithium Race At UBS: Electric Vehicles To Reach Cost Parity With Petrol Cars By 2018.

The most important here is who is talking. This time it is UBS, one of the largest wealth managing bank in the world. The clients will listen. Almost nothing drives human nature more than a wallet. Now we can add officially the most powerful driver for millions of future drivers to buy an electric car. You will start saving money from day one comparing to owning a similar class ICE car. UBS is talking about total cost of ownership at the moment, but by 2020 we can expect that the cost of buying an electric car will be lower than an ICE one. This will ignite The Switch we are talking about here. And do not forget that UBS has tested not the best affordable electric car by any stretch of an imagination. 

Tesla Model S brought an earthquake to the ICE Age auto industry and Elon Musk has demonstrated that the best cars can be electric. Now tsunami of Tesla Model 3s is coming ... "We had the best electric cars and we had affordable electric cars, now we have the best affordable electric car."

"BYD is very proud to be back on the wave in China in July with over 11k EVs sold, it gives us over 130k per year EVs sold annualized. Elon Musk is talking about the rate of production with 20k Teslas per month by the end of this year and over 500k per year by the end of 2018. Now he estimates the demand for Tesla Model 3 at 700k per year. Bloomberg estimates that we will be able to choose from 200 EV models by 2020. The market is not even close to the proper translation of what kind of EV tsunami is coming and how it will affect the demand for lithium and other energy metals."

Lithium Race: Tesla Model S Brought An Earthquake To The ICE Age Auto Industry, Now Tsunami Of Model 3s Is Coming ...

The most important message in this video is the presenter - the future belongs to the new generation and they will be buying electric cars. "I am a geek. I have never liked cars, I have never been a fan of cars until Tesla". Tesla Model S brought an earthquake to the ICE Age auto industry and Elon Musk has demonstrated that the best cars can be electric. Now tsunami of Tesla Model 3s is coming ... "We had the best electric cars and we had affordable electric cars, now we have the best affordable electric car." Read more.

"The cost of lithium batteries is going down very fast and I believe that fully electric cars will rule the world very soon. Tesla Model 3 with 65 kWh lithium battery provides over 200 miles of range and will become the standard in the industry with its mass volume production from this July. There is around 60 kg of LCE (Lithium Carbonate Equivalent) in one Tesla Model 3 battery. We will need 36 Million Tonnes of LCE to be produced by 2040 to put this IEA plan into life. 

To put it into perspective, the total lithium production last year was around 200,000 T of LCE. Now you can better understand why there is the real cut throat competition for the security of lithium supply which is still hidden from the most of the people by the clouds of toxic cancer hazard fumes emitted by all DIEsel cars on our roads. ICE (Internal Combustion Engines) are on the way out, all cars will be electric very soon and we are facing the total disconnect between the coming demand for lithium and the available supply. Read more."

International Lithium's JVs With Ganfeng Lithium Is An Entry Point To A Vertically Integrated Business With An Industry Giant From China. 

International Lithium's (TSXV: ILC) Joint Ventures with Ganfeng Lithium in Argentina and Ireland is an entry point to a vertically integrated lithium business with a USD $6 Billion market cap industry giant from China. ILC's strategy is to build VC Capital in a number of M&A transactions. Construction of ILC Royalty Portfolio is our underlining business model. International Lithium's stake in the Mariana joint venture is of particular interest for OEMs entering into the electric car and lithium battery business looking to secure their long term lithium supply. Read more.
Please contact us to explore this opportunity. Thank you!


By  on 22 May 2017

"Analysts for UBS have torn apart a perfectly good Chevy Bolt to see how it is put together. What they found led them to make this rather startling announcement:  the “total cost of consumer ownership [of electric cars] can reach parity with combustion engines from 2018.”
Notice that doesn’t mean an electric car and a conventional car will cost the same to buy new. It means they will cost the same to own, figuring in maintenance, cost of fuel, insurance, and all the other factors that are part of the total cost of ownership.
The UBS study goes on to say, “This will create an inflection point for demand. We raise our 2025 forecast for EV sales by 50% to 14.2 million — 14% of global car sales.”
After deconstructing the Chevy Bolt, which it called “the world’s first mass-market EV, with a range of more than 200 miles,” UBS called the electric car the “most disruptive car category since the Model T Ford.” It says it expects Europe to lead the rest of the world in adoption of electrics.
The UBS team found that the powertrain for the Bolt was $4,600 cheaper to produce than originally thought, “with much cost reduction potential left.”
It also found that the electronics built into the car cost about $4,000 more than those in a conventional car, not including the cost of the battery. But they say GM is losing money on every Bolt they sell. “We estimate that GM loses $7,400 in earnings before interest and tax on every Bolt sold today, mainly due to a lack of scale.”
The same analysts say they expect Tesla to lose $2,800 on entry-level versions of its soon to be introduced Model 3 but think customers will opt for extra cost options that will raise the average selling price to $41,000 — $6,000 more than the base price. Tesla will be able to break even at that price, they believe.
Overall, automakers will start earning a profit of about 5% on electric cars by 2023 as the switch over from conventional cars to electrics gathers momentum. “Once total cost of ownership parity is reached, mass-brand EVs should also turn profitable,” UBS said. 5% happens to be the average profit margin on conventional cars, although some premium manufacturers like BMW are accustomed to profit margins as high as 8%.
Its findings led UBS to issue a warning for companies that make replacement parts, since electric car drivetrains are more reliable than those that feature internal combustion engines. That makes perfectly good sense, considering a gasoline engine has over 1,000 moving parts. An electric motor has 3.
Add in the increasingly complex automatic transmissions in use today and there are a lot of things that require fixing as a conventional car ages. “Our detailed analysis of moving and wearing parts has shown that the highly lucrative spare parts business should shrink by 60% in the end-game of a 100% EV world, which is decades away,” UBS said."

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