Thursday, 3 May 2018

Lithium Race To The Total EV Market Domination Is ON: Elon Musk Confirms Next Tesla Gigafactory Will Be In China.

Teslarati reports on the latest developments in the negotiations between Tesla and China. China is the Centre of the Lithium Universe already and now will become the new hub for the best technologies related to electric cars, lithium batteries and renewable energy in general. New Energy Plan developed by China over this decade is taking the most important chocking points in the supply chains in the world over step by step with the military discipline. Nobody can prevent this transfer of best available technology for EVs and Lithium Batteries now, the largest auto market and growth is in China and all automakers must be present there.

Lacking any clear government strategy to support the transition to the Post Carbon Economy in the West apart from very brave experiments with "Clean Coal" in the US and "Clean DIEsel" in Europe, companies like Tesla have to compete for crucial supply chains for materials for the Next Industrial rEVolution with the state-level military machine "Made in China".  China is already the largest market for EVs and the prize will be the total domination in this sector on the global scale. 

Phase one for China was the control of the critical elements of the supply chain for Tesla Energy rEVolution and is almost accomplished. Phase two is to commoditize Lithium Batteries and make them dirt cheap. Phase three will be converting its "army of 1000 automakers" (there are 130 auto brands available in China and more than 100 models of electric cars were exhibited at the recent Beijing Auto Show) into the global force driving Chinese economy in the 21st century and taking over overseas markets one by one. 

Complications of the Oil and Autos sponsored DIEselGate Party in the West will be the severe hangover and very far-reaching changes in the balance of power. The West is literally facing trillions of dollars in the stranded assets all across $12 Trillion dollars industries of Energy and Transportation, but now you have to add all military complex on top of it as well. To be relevant in the 21st century you do not have to control and protect all many trillion dollars worth of Oil markets and ocean supply chains, you can control just $3 Billion (by sales) Lithium Industry. Asymmetric economic warfare makes the industrial base in the West which was built in the 20th century totally obsolete.

SQM is talking about 10 billion dollars in urgent investments needed just to support lithium industry with the accepted levels of adoption for electric cars. Junior mining market for lithium companies is drying out again while Chinese Companies like CATL, Ganfeng and Tianqi are raising billions of dollars in IPOs and buying all the best available Lithium projects in the world concentrating on the control of productions and off-take agreements. And sometimes it looks like almost everything goes in this cutthroat lithium race to the total EV market domination at stake. 

Tesla Energy rEVolution Chronicles: Lithium Wars And Hostile M&A - Hunting Season Is On.

"You know my bold statements related to the Energy rEVolution, The End of The ICE Age and OIL Dominance. You know my demands to Ban DIEsel. My focus was always to build Secure Lithium Supply for the West."


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"Speaking during the Q1 2018 earnings call, Elon Musk announced that Tesla’s next Gigafactory would be built in China. What’s more, Musk stated that all future Gigafactories would support the manufacture of the company’s vehicles. 
Musk’s update on its factory plans in China came as a response to a question from CNBC’s Phil LeBeau, who asked for more details about Tesla’s plans regarding the Model Y, the Tesla Semi, and company’s future vehicles. Musk’s response to the question was direct, stating that the next Gigafactory will be established in China
“It has to be later this year. Maybe next quarter, but not later than fourth quarter for Model Y. We also expect to announce the location of a Tesla Gigafactory in China soon. In the future, all Gigafactories will include vehicle production. So, right now, vehicle production and battery production, like battery production and motor and power electronics and charger production are at Giga, and then, we have our Fremont car factory. But future Gigafactories will all incorporate vehicle production.”

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