"People are ready for The Switch, millions are switching from cancer hazard polluting "Clean DIEsel" and "Not so dirty Gas" cars to EVs. Mr Market will separate, as always, flies from hamburgers and a lot of people on Robinhood from their money, but do not miss the real tectonic shift. The World Just Before The Internet. We are going electric. A few megatrends are colliding and will produce real fireworks for the strategic commodities."
TNR Gold Lithium Royalty Holding: Tesla Goes SpaceX Vertical, Ganfeng Increases Stake In Mariana Lithium Closer To 100% And Moves Project Towards Pilot Scale Test Stage.
Tesla goes SpaceX vertical following the decision about inclusion in the S&P 500. Norway goes full-electric mode with almost 80% EVs share of the auto sales and everything electric is driving Robinhood crowd FOMO crazy upon any new EV IPO arrival. Electric Cars are here. The Switch is happening as we speak when millions of people are switching from ICE cars and buying EVs.
All this electricity in the air and high voltage anticipation of the investment crowd in the EV space provides a very sharp contrast to the deceitful tranquillity and calmness of the Lithium brine ponds in the Lithium industry. There is a lot of drama and chemistry involved in supply chains for electric cars behind the scene.
Lithium prices are still trying to make a bottom and it seems that nobody among brave Robinhood souls has made any real connection between Coca-Cola and sugar industry in the Electricity Storage Age. We like what we see and we are buying more of it now. I am participating in another round of financing for TNR Gold and you will have to make your own research to decide for yourself whether Mr Market has provided us with another ticket for his Time Machine adventure.
The investment thesis for the best Lithium plays is quite simple now. We have a total disconnect between billions of dollars which are chasing electric dreams of "The Next Tesla", real Energy Transition and lack of the Capital to build secure Lithium supply chains to feed this rEVolution.
Nobody really knows where the Capital will be coming from to build up Lithium production capacity from just over 300,000 T of LCE produced this year to over 1 million T of LCE required annually by 2026. As usual, the best approach will be to stick with those who know how to do it and have done it before. TNR Gold is plugged into this Tesla Energy rEVolution with our NSR Royalty Holding on Mariana Lithium. The new giant from China Ganfeng Lithium is developing Mariana Lithium JV and building a global vertically integrated Lithium business.
Tesla Battery Day presentation has demonstrated that the mass market for electric cars is literally around the corner with costs of Lithium batteries going down and that we are closing on EV and ICE car cost parity. Elon Musk was talking about a new $25,000 electric car being developed by Tesla.
Solid technical data and demonstration of incredible achievements of advancing EV technology by Tesla Team followed by Elon Musk dream about unlimited Lithium supply which can easily match his imagination on demand. It took Lithium investors a few days after a brutal sell-off to understand that Elon Musk was applying "The Art of War" to the Lithium companies. He was talking about deserts full of Lithium clay and table salt which will be making the pure Gold out of it after this dirt will be moulded in the batteries for new Teslas.
Meanwhile, Tesla was signing real offtake agreements with the real Lithium spodumene projects owners to secure real Lithium supply. On another side of the globe companies like Ganfeng Lithium are growing in the land of the original "The Art of War". They are exercising ruthless mercy to all the others who are still daydreaming after digesting the DIEsel fumes. Ganfeng is already supplying Lithium to Tesla, VW and BMW among many others.
The "Opaque Lithium Kingdom" is full of its own drama with Tianqi facing the "Get Big Fast" consequences after being the proud buyer of a big stake in SQM at the very top of the Lithium market.
Gangfeng Lithium is taking control over the raw materials supply chain and the crown of the largest integrated Lithium producer in China and was even declared the largest Lithium hydroxide producer in the world in September.
Unfortunately, the deal for leasing additional Lithium production capacity between Ganfeng Lithium and Jianxi Special Electric Motor fell apart, but the company was really busy anyway shaking off the pandemic fever and growing into $15B market cap this year.
The main strategic priorities remain the same - building the markets, increasing production capacity and building the diversified secure supply base for the Lithium raw materials. Ganfeng and Lithium Americas JV project is moving forward following the new dreams of the policymakers in Argentina "to unleash the full market power for the Lithium mining sector".
Now Ganfeng Lithium is moving development of Mariana Lithium into the next stage with the proposed USD $25 million budget for 2020 - Ganfeng has already increased its stake in Mariana Lithium closer to 100% with 88.4% ownership according to public filings released in MD&A in November.
Ganfeng Lithium Interim Report 2020 stated: "The feasibility study of Mariana Project in Argentina was successfully completed in 2019, and environment assessment, pilot-scale test, and design of plant construction are being launched to the project."
Now you can better understand why TNR Gold Team is really excited with all recent developments in the electric space. We do not have to contribute any capital for Mariana Lithium development and our potential future NSR Royalty cash flow is becoming more and more feasible. You can find more public information for your own research on the links below and follow Mariana Lithium project development on my blog and the updated Ganfeng Lithium website.
Lithium Will Power Us For The Next 50 Years And Then Robots: Kirill Klip GEM Royalty TNR Gold Lithium Presentation December 2020
"TNR Gold is plugged into the Tesla Energy rEVolution with our NSR Royalty Holding on Mariana Lithium JV under the management of this giant from China.
Ganfeng proposed USD $25 million budget for Mariana Lithium in 2020 and "The feasibility study on Mariana Lithium was completed in 2019, and environmental assessment and construction of the project are planned to be conducted," as it has stated in Ganfeng Lithium 2019 Annual Report.
Ganfeng Lithium has provided a further update on Mariana Lithium in 2020 Interim Report: "The feasibility study of Mariana Project in Argentina was successfully completed in 2019, and environment assessment, pilot scale test, and design of plant construction are being launched to the project."
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