Tuesday, 4 February 2020

The End Of The ICE Age Powered By Battery rEVolution: Tesla Goes Vertical And Breaks $780 - The Best Lithium Companies To Follow.

By @vincent13031925

Let's make batteries, not bombs. This picture from Vincent portraits the excitement among Tesla shareholders the best. Elon Musk launched Tesla "To The Moon". Maybe hodlers have finally followed my suggestion and started buying not only Cybertrucks but Tesla shares as well as a hedge? 

By @MaryFoxCrypto

Shorts are served roasted as Tesla stock goes vertical and breaks $780 mark. Electricity is in the air and Ron Baron is talking about Tesla as the next Trillion dollar company. Nothing is growing straight to the sky apart from debt, but this move by Tesla is more than just hype. 

Bears are turning one by one to Tesla (if they managed to stay alive) realising that there is no competition to Elon Musk Team and the best-developed technology for electric cars. Tesla Gigafactories can mushroom very fast, as we can see from China Gigafactory 3 example. Machines are making machines. Now Gigafactory 4 is coming up in Germany - in the very heart of the iconic legacy automakers.

Now the only thing left that AI cannot do itself - is the secure supply of Lithium and other commodities, like Copper, to power this rEVolution. Hopefully, a realisation that the future is electric will bring so much needed capital into lithium space in order to build secure lithium supply in the West as well. China has made great progress implementing its long term multi-year New Energy Plan with new multi-billion dollar companies growing up in the process like a giant Ganfeng Lithium which is hitting over USD $7 Billion market cap these days. 

Chinese companies are holding a very important control stake in the global lithium supply chain and are taking control of more and more best projects. TNR Gold is holding NSR Royalty on Mariana Lithium project - JV under operation by Ganfeng Lithium in Argentina. We are plugged into rEVolution with Ganfeng JV and do not have pressure to contribute any capital for Mariana Lithium project development. 

Now we can expect that the best lithium companies will follow the path electrified by Tesla as more and more people from the investment crowd will go up the value stream for electric cars. Royalty companies, like TNR Gold, can provide very important hedge and the unique entry point into this rEVolution with giants like Ganfeng Lithium who are driving the electrification of Energy and Transportation with Tesla. Do your own research as usual and you have a lot of information on the links below. Let's make batteries, not bombs, cheap lithium batteries change everything.

Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. Do Your Own Research.

Let's Make Batteries Not Guns. Powered By Energy rEVolution: Ganfeng Lithium Goes Vertical - China Will Not Cut All Subsidies For Electric Cars After All.

Let's make batteries not guns. This could be another hit from The Beatles these days.

But when you look at lithium junior miners today you can miss all the electric buzz and excitement which is happening with the electrification of what is left out of Auto Industry. Energy rEVolution Companies like Tesla are growing up vertically and becoming the largest companies providing sustainable mobility solutions while leaving legacy automakers literally in the cancer hazard dust left behind. 

The disconnect between this beautiful promising picture and fate of lithium juniors who are supposed to feed the Energy rEVolution is the most dramatic we have ever seen. Those of them who survived are still struggling to properly articulate their near-death experience. 

It is very difficult to recognise that this ongoing massacre with the enormous destruction of shareholders value can provide another generational opportunity to plug in your portfolio into the Energy rEVolution. Lithium will power us for the next 50 years and after that robots, but who can cross this desert to the beautiful oasis on the horizon? Only the strongest will survive and they are getting stronger. Giants like Ganfeng Lithium are getting control of all the best projects they can now.

It is very difficult to predict the future, actually, nobody knows it unless you are coming back, like Elon Musk. Now it is happening here: The Switch is ON - electric cars are taking the world over. Super stupid arguments about electric cars which are polluting more than the ICE ones are finally recognised by the crowd as they are - stupid. I stopped commenting on it. There is no need anymore. The ICE Age is over. Millions of people are voting with their wallets by buying the best cars which just happen to be electric. 

Some news is travelling faster for some people than for others. While Elon Musk was dancing and serving Tesla shorts roasted, Ganfeng Lithium decided to go verticle and doubled its share price from September. Now we know more: China will not cut all NEV subsidies after all, as was never really the case. 

As we have discussed, China is playing the long term game here and leapfrogging into the Post Carbon Economy directly jumping over the hundreds of billions of dollars becoming stranded assets and silent monuments to the "Clean DIEsel" and "Not So Dirty Gas" in the West. 

The smart asymmetric "Art of War" approach has been applied to the "Art of the Deal" many years ago with the New Energy Plan in China. Subsidies were cut for the old, inefficient transitional EV technologies like hybrids and inefficient batteries with low energy density. China is stimulating the acquisition of the best technology for electric cars. 

Now Tesla Gigafactory 3 is producing thousands of Tesla Model 3 and started the first production of Model Y in the world. The transfer of the best EV technology is unavoidable. Giants like Ganfeng Lithium are closing the power circuit by taking control of the supply lines for the 21st century. Ganfeng Lithium already signed deals to supply directly TeslaVolkswagen and BMW. They are working on their own solid lithium battery technology as well.

As we have discussed, the lithium market and juniors involved are so much hated now that it deserves a second look for all contrarians at heart. As always, do your own research and you will have to pick up the winners. You can find my posts on the links which can help you.

Lithium technology will power electric cars for years to come, but who can cross the desert now, when juniors are starving for capital and even majors are struggling with direction during the short term "glut of lithium" in China? Who will deliver 1M tonnes of lithium LCE per year starting in 2025? Who can afford to raise the needed capital and make this jump in the expansion of production facilities from 320,000 tonnes of LCE in 2018? I think that it will be safe to say that top lithium names will be the answer. Companies like a giant from China Ganfeng Lithium already have supply agreements with Tesla, BMW and Volkswagen. They have the staying power not only to survive lower lithium prices but further consolidate the market, as we have been discussing before.

Ganfeng Lithium continues its commitment to Argentina and has celebrated the closing of its $160M additional investment into Lithium Americas JV in September. TNR Gold holds NSR Royalty on Mariana Lithium project which is being developed by JV with Ganfeng Lithium as the operator and does not have to contribute any capital for the development. Ganfeng is expecting pre-feasibility and feasibility studies to be completed this year. Below you can find more information for your research.

Let's make batteries not guns. Check your portfolios, Ladies and Gentlemen, are you ready to embrace Energy rEVolution in style?

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