Energy rEVolution And Stranded Assets: PetroChina, The First $1 Trillion Company Has Lost $800 Billion In Market Value.

I have this strange feeling, that everybody is talking about electric cars now, but nobody really believes it. Lithium supply chain is ready for maximum 10% - 15% of electric cars in the new auto sales, but only China is really serious about it with its state-level New Energy Plan. Chinese companies are executing this plan with military discipline and taking one check-point after another in the new geopolitical landscape moving into the Post Carbon Economy.

Ganfeng Lithium, the JV partner of International Lithium, has seen its market cap more than tripled this year alone, following the truly dramatic rise in sales. Meanwhile, In the West companies like Tesla are competing for lithium supply with the state-level New Energy Plan in China and still relying on lithium cells supply from Panasonic and Samsung.

A lot of investment advices will turn out to be very costly again. Analysts are still finding "oversupply" of lithium and Chairman of Volkswagen "still believes in DIEsel" and shareholders are not getting very angry yet. But they will. The Switch is for real now and Electrification already claims its first victims. It is time to check your portfolios and move to the right side of the history. The ICE Age is over and disruption of $12 Trillion Transportation and Energy Industries means literally billions of dollars in stranded assets. 

Bloomberg reports:

"The stock has been pummeled by some of China’s biggest economic policy shifts of the past decade, including the government’s move away from a commodity-intensive development model and its attempts to clamp down on speculative manias of the sort that turned PetroChina into the world’s first trillion-dollar company in 2007.

Throw in oil’s 44 percent drop over the last 10 years and Chinese President Xi Jinping’s ambitious plans to promote electric vehicles, and it’s easy to see why analysts are still bearish. It doesn’t help that PetroChina shares trade at 36 times estimated 12-month earnings, a 53 percent premium versus global peers."

Lithium Race And Energy rEVolution: Reds Are Going Green - Electric Cars Are A Hit With Chinese Consumers.

Wall Street Journal made a very good report on the electric cars rEVolution which is happening today in China. The video report is stressing that all this success is the result of the industrial policy by the government in China. We have The New Energy Plan for the transition to Post Carbon Economy in action in China on a state level. With announcements from GM and Ford embracing electric cars, we have some hope in the West now not to be left in the poisonous DIEsel and Gas ICE Cars dust as well. 

Lithium is the magic metal at the very heart of this Energy rEVolution and China is building the supply chains for the Next Industrial rEVolution with military discipline leaving the rest of the world totally unprepared for the coming geopolitical transition.

As you know, I have been preaching for years that security of lithium supply will be the most important factor determining the competitive advantage among different producers of critical raw materials for the Energy rEVolution. This Lithium Race will have the very far-reaching geopolitical implications. Now it looks like that Tesla is realizing that there is no secure supply of lithium for its massive expansion of operations from the underneath of Gigafactory floor in Nevada. Even if Panasonic is producing cathode for lithium cells which are made at Tesla Gigafactory in Nevada the supply chain is going all over the globe and back to China.

The real test to the market and supply chains for Energy rEVolution will come with the coming tide of Electric Cars and the following tsunami of Energy Storage. Bloomberg has recently reported that there will be more than 120 models of electric cars by 2020 and you should not be surprised as we have discussed here before that there are more than 70 models of electric cars on sale in China already. The next few years will determine who will have the keys to the new Energy rEVolution and control the supply chains. Hungry Dragons are flying high already and mostly in China, the question remains who and how will feed them without fear of being burnt in the process. 

Lithium Race: The Switch Is On - China Sets New Deadline For Electric Car Quota From 2019.

We have finally actual steps taken by China in its transition into the Post Carbon Economy and leaving literally The ICE Age in the poisonous dust behind. China is The Centre of The Lithium Universe and now they are ready to start geopolitical shift which will affect everything. BYD is talking about China going all electric from 2030, but today we have the first major step in that direction with an introduction of a quota for electric cars from 2019. In short two years time, all automakers in China with over 30,000 cars in annual sales will have to produce at least 10% electric cars. It can be translated in over 2.8 million new electric cars in China being sold in 2019! Last year China has seen the fastest growth pace in three years with total auto sales climbing to 28.03 million cars. From 2020 automakers will have to produce 12% of electric cars.

Now we have a better understanding why Ganfeng Lithium: JV partner of International Lithium - was going vertical last few months. This kind of news is travelling very fast in the state corridors of power in China. This geopolitical move will have very wide political and economic implications as we have discussed it here for a long time. China is very well positioned to take the lead now and the ICE Age Of Oil is officially over.

We are reaching the tipping point this year: convergence of technology, new players who bring competition and prices down; and anti-pollution movement by the most important countries for the automakers. DIEselGate was the last drop and auto lobby cannot just swipe it under the rug anymore, consumers are not buying "Clean DIEsel".

Needless to say that lithium supply chains are not even close to the coming Tsunami of electric cars after Tesla Model S Earthquake. Countries like China and India are very serious to clean up their skies from deadly pollution and now we have lithium technology to make it possible: electric cars will take the world over much faster than a lot of people think.

Electrification of China and India will drive the next phase of the worldwide growth in EV fleet. India has announced that all new cars on sale will be electric by 2030 and they are taking it seriously making the first tender for 10,000 EVs to be supplied for the government ministries and agencies now. Transfer of the best technology for Lithium Batteries and Electric Cars will be next. China is already The Centre of The Lithium Universe and exercises its state-level New Energy Plan step by step with the military discipline, starting with securing a Lithium Supply Chain.

LEGAL DISCLAIMER

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

All latest information is available in Company's filings on SEDAR www.sedar.com

Lithium Race: Tesla In Talks With India To Help Eliminate All Fossil-Fuel Cars By 2030.

With this kind of developments all lithium supply and demand models adopted by the industry can be thrown away. Electric cars are coming much faster than a lot of people think. The largest auto market in the world in China goes electric with millions of EVs being sold in years to come and India: the third largest auto market in the world - is talking about all cars being by 2030! Security of lithium supply is everything now for the mushrooming Lithium Batteries Megafactories.

SQM has announced that J/V with Lithium Americas and Ganfeng Lithium is on track to be put in production by 2019. One more salar is gone in Argentina. There are only a few of them left and guys like Tesla, Daimler, BMW, GM have not even started to build their own supply chains of critical commodities powering this Energy rEVolution. We have very interesting time ahead of us in the lithium market this summer.

International Lithium And Ganfeng Mariana Lithium JV Exploration Target And Indicated Resource Of 1.25 M T of LCE.

International Lithium – The Chinese Bet On Salares.

  

Lithium Salares. InvestorIntel.

  Christopher Ecclestone has written a piece with the depth of knowledge of lithium industry I have not seen for a long time.  He was one of the very first analysts covering the Lithium 1.0 Rush in 2008-2009. TNR Gold, our holding company which now has over 20% stake in International Lithium, was holding all lithium assets which were later spun off in the IPO with Ganfeng Lithium. TNR Gold went from 3 cents that year to over 30 cents in 2009.  

  The first hype came and was gone with numerous companies along with it, only the strongest have survived. Now we have the solid fundamentals about the Lithium 2.0 Launch. Electric cars are here and EVs for the mass market are coming now in the fast lane onto our streets. International Lithium is still very tightly held with TNR Gold holding over 20%, Ganfeng Lithium at 15% and myself with just under 10%. I would like to use this opportunity and thank all ILC Team and our partners helping us to build International Lithium as one of the most active lithium exploration and development companies in the world. We have CAD $17 million budgeted for the development of our projects on 3 continents. Today you can find more information on our company and our strategic partner Ganfeng Lithium.

  Please carefully read my legal disclaimer and never make any investment decisions without consulting with your preferred qualified financial advisor. You can find all latest information about our company on International Lithium website and in filings on SEDAR and SEDI. Read more.

International Lithium And Ganfeng Lithium Announce Maiden Resource Estimate At The Mariana Lithium Brine Project, Argentina.

Kirill Klip, Executive Chairman of ILC stated, “I am very pleased that as part of our successful strategic transition at International Lithium we are announcing a maiden resource estimation of our main project in Argentina, the Mariana lithium-potash brine project, together with our strategic partner Ganfeng Lithium. Now we are working on the clear, transparent and most cost efficient structure to advance our joint ventures with Ganfeng in order to ensure the rapid advancement of the projects.”

The Switch: Energy rEVolution - International Lithium Announces Strategic Investments And Royalty Business Model.

International Lithium:

International Lithium announces Private Placement of Convertible Securities

Vancouver, B.C. March 31, 2017: International Lithium Corp. (the “Company” or “ILC”) (TSX VENTURE: ILC) announces that it will conduct a non-brokered private placement (the “Private Placement”) of convertible securities having a face value of up to $250,000 from arms’ length and non-arms’ length parties (the “Lenders”), including two directors of the Company. The securities will be issued pursuant to a convertible loan bearing interest at the rate of 15% per annum, payable quarterly, with a maturity date of one year from the date of advance.  The Lenders may convert at any time, all or a portion of the convertible loan principal into common shares of the Company at a price of $0.14 per common share. The Company has the right to repay the convertible loan, at any time after three months from the date of advance.  The convertible loan will be secured by a general security agreement against the Company’s assets.

The Private Placement is subject to the approval of the TSX Venture Exchange (“TSXV”).

The proceeds of the Private Placement will be used for general working capital purposes.  All Private Placement securities will be restricted from trading for a period of four months and one day from the Private Placement closing.

The proposed issuance of Private Placement securities to a non-arms’ length party constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Because the Company’s shares trade only on the TSXV, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101.  This News Release is being filed less than 21 days before the expected closing of the Private Placement because the Company wishes to complete the Private Placement in a timely manner.

About International Lithium Corp.

International Lithium Corp. has a significant portfolio of projects, strong management, robust financial support, and a strategic partner and keystone investor, Ganfeng Lithium Co. Ltd., a leading China based lithium product manufacturer.

The Company’s primary focus is the strategic stake in the Mariana lithium-potash brine project located within the renowned South American “Lithium Belt” that is the host to the vast majority of global lithium resources, reserves and production. The Mariana project,  strategically encompasses an entire mineral rich evaporite basin, totalling 160 square kilometers, that ranks as one of the more prospective salars or ‘salt lakes’ in the region. Current ownership of the project is through a joint venture company, Litio Minera Argentina S. A., a private company registered in Argentina, owned 80% by Ganfeng Lithium Co. Ltd. (“GFL”), and 20% by ILC. In addition, ILC has an option to acquire 10% in the Mariana project through a back-in right.

Complementing the Company’s lithium brine project are three rare metals pegmatite properties in Canada known as the Mavis, Raleigh, and Forgan projects, and the Avalonia project in Ireland, which encompasses an extensive 50km-long pegmatite belt.  The Avalonia project is under option to strategic partner GFL, that currently owns 55% of the project. The Mavis and Raleigh projects are under option to strategic partner Pioneer Resources Limited (ASX:PIO) pursuant to which Pioneer can acquire up to a 51% interest in the projects.

The Mavis, Raleigh and Forgan projects together form the basis of the Company’s newly created Upper Canada Lithium Pool designated to focus on acquiring numerous prospects with previously reported high concentrations of lithium in close proximity to existing infrastructure.

With the increasing demand for high-tech rechargeable batteries used in vehicle propulsion technologies and portable electronics, lithium is paramount to tomorrow’s “green-tech”, sustainable economy. By positioning itself with solid strategic partners and acquiring high-quality assets for the Energy Revolution supply chain, ILC aims to be the partner of choice for investors in green-tech and to continue to build value for its shareholders.

On behalf of the Board of Directors,

Kirill Klip

Executive Chairman 

For further information concerning this news release please call +1 604-700-8912

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “will”, “could” and other similar words, or statements that certain events or conditions “may” or “could” occur. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled “Forward-Looking Statements” in the interim and annual Management’s Discussion and Analysis which are available at www.sedar.com. While our management believes that the assumptions made are reasonable, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Forward-looking information herein, and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

Lithium Race For Electric Cars After Samsung Galaxy: Battery Of The Future - Solid State Lithium.

Now 3 Trillion Dollars industries are investing in Lithium Batteries R&D: Communications, Transportation (Electric Cars) and Utilities. New and better technologies will be introduced, lithium batteries will become cheaper and safer, providing an even longer range for electric cars. My magic formula for the mass market for electric cars of 20/200 is just around the corner: $20k buys you a beautiful electric car BMW 2 type with over 200 miles range. All DIEsel and Gas-powered cars will become obsolete within next 15 years. I believe that Elon Musk is already working on Solid State Lithium batteries at Gigafactory.

Back Into The Future: Lithium Will Power Us For The Next 50 Years And Then Robots.

Catalyst For The Lithium Energy Storage Technology: Samsung EV Battery Offers 500km Range With 20 Minutes Of Charge.

"Samsung Galaxy battery problems were not the best advertisement for this South Korean giant and many have missed that Samsung is making its way up into the EV market as well. Samsung is building its own Lithium Megafactory now as well. As we have discussed before, we have reached the bifurcation point for the Lithium Technology of Energy Storage when giants from three multi-Trillion dollars size industries are investing in R&D: Communications, Transportation and Energy with Utilities. 

The result is the learning curve with costs for lithium batteries going down at least 16% per year. It will be important to know the more technical details about new Samsung Lithium Batteries, but the trend is apparent even now. Lithium Megafactories are rising all over the world and competition will bring better and cheaper lithium batteries very fast now. I expect that lithium cells for batteries will become commodities at some point like solar panels. 

GM Bolt and Tesla Model 3: two new electric cars priced below $40k and with 200 miles range will bring us the mass market for EVs. 300 miles seems to be the new range target for a number of automakers when you can forget about any range anxiety. Tesla Model S and X are closing on this mark, Ford has just announced the development of all-electric SUV with 300 miles range and now Samsung will drive hopefully BMW into the 21st century.

As we have discussed before, the fast charging capability could be the problem at Samsung Galaxy battery. You will notice from Lithium Batteries 101 links provided below that mobile phone batteries are very different from the auto ones. But Samsung still will have to address the image problems because of Galaxy battery disaster, I expect that the result will surprise a lot of people even in our industry. Samsung will have to move up the scale in quality/cost for its lithium batteries. New developments will drive the innovation. It is time for the future batteries which will power us for the next 50 years and after that robots. Lithium Solid State and Lithium Air are moving closer to commercialisation. Read more Lithium Batteries 101"

Lithium Battery Wizards: What Is The Real Problem With Samsung Galaxy Battery?

  Samsung Galaxy recall due to the faulty batteries is making the headlines and we will read a lot about "the dangerous electric cars" in the next few weeks. I will not waste time to EVangelise those who are being paid to continue to poison us all with cancer hazard deadly emissions by ICE-age technology.  And will stop just reminding everybody that there are about 17 ICE cars catching fire every hour in the United States. 

  I will address those who is really concerned about the safety of lithium batteries. I will be the first of them as all cars will be electric very soon and we all need the best: safe and most powerful lithium batteries available ASAP.

  I will try to dig out with experts what is the real problem with Samsung Galaxy batteries.  I am not buying that it is "just a few faulty lithium cells." We have the structural problem and have to move fast to the next level of lithium technology with Lithium Solid State technologies. Only then we will be able to address the demanded high energy density with necessary safety in place.  My few questions to address:

1. Was it Samsung SDI lithium battery used in Samsung Galaxy?

2. What is the chemistry of that battery - is it Lithium Cobalt?

This could explain a big part of the trouble - from June 2015: Samsung's New Graphene Technology Will Double Life Of Your Lithium-Ion Battery

"The graphene layers anchored into the silicon surface accommodate the volume expansion of silicon via a sliding process between adjacent graphene layers," Samsung says in a paper published in the Nature journal detailing the results of its research. "When paired with a commercial lithium cobalt oxide cathode, the silicon carbide-free graphene coating allows the full cell to reach volumetric energy densities of 972 and 700 Wh l-1 at first and 200th cycle, respectively, 1.8 and times higher than those of current commercial lithium-ion batteries." 

The idea to "double pack" the amount of energy in the most volatile Lithium-Cobalt chemistry can be "the dead end" even if you use a lot of words like nano and graphene.

3. I have never used Samsung mobile phones, but "super fast charging" option with very low level of BMS ( Battery Management System) with Lithium Cobalt cell's chemistry is the sound of potential trouble.

4. Were Samsung lithium batteries involved in HP products recall as well?

  My first few observations will be that larger screens demanded by social media addicted consumers helped manufacturers of mobile devices to hide the larger lithium batteries and the big problem with lithium cobalt chemistry. It looks like Samsung was pushing the oldest lithium-ion technology used by mobile devices to the limit. "Super fast charging" is particularly detrimental to lithium cobalt batteries with very low level of basic BMS.

Argonne National Lab.

  For your information: Lithium-Cobalt batteries are mostly used by mobile communication industry, including Apple. Tesla is using Lithium NCA battery cells provided by Panasonic. And Lithium NMC battery was developed in the U.S, licensed by LG Chem and now is coming back in GM Volt and Bolt batteries. The charts above provides the initial information on different lithium chemistries. Chinese companies are mostly using Lithium-Iron Phosphate based chemistries for their batteries.
  Now Elon Musk's confirmation that Panasonic lithium cells will be used exclusively for Tesla Model 3, despite rumors of Samsung involvement, looks like "super smart" move.  Tesla and Solar City combination of growth pains do not need another blow from Oil and Auto lobby now. I do really hope that Elon Musk is already working on Lithium Solid Sate at Tesla Gigafactory and Dyson with his $1.4 billion investment in this technology after buying Sakti3 are not just headlines. 

  And please do not forget that I am in "sweet sugar business" - please do read all my legal disclaimers. Lithium is a sugar for the Coca-Cola industry, whoever will be coming out with the best products will be using it. Why do I think so and results of my research can be found on this blog. Read more Lithium Batteries 101."

Lithium Race: Transfer Of The Best EV Technology Is Next - China's Tencent Takes Five Percent Stake In Tesla.

Make no mistake, geopolitical implications of the attempt to "Make America Great Again" with "Clean Coal" will go very far. China is executing meticulously its New Energy Plan taking dominant positions in one market after another. Lithium Materials - check, Lithium Batteries - in the making, Electric Cars - more than 70 EV models are on sale and now the hunt is on for the best technology to transfer in exchange for the access to the largest market.

"Today's news about the technology giant behind the Chinese "Facebook" Tencent taking a 5% stake in Tesla is giving more credibility to Elon Musk's plans to expand his operations in China. It is showing that the largest market in the world for electric cars in China will welcome Tesla in order to get the best technology for electric cars. It is all part of the very carefully crafted New Energy Plan in China. Next logical step will be to follow up on Elon Musk's ideas to bring production of Teslas into China as well. The transfer of the best EV technology is the next step. Who will be left behind holding the bag after Energy rEVolution?

Joe Lowry from Global Lithium has just reported that NCA cathode for lithium batteries is still produced in Japan by Panasonic for Tesla. 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."

International Lithium Presentation March 2017.

The Switch: Energy rEVolution - International Lithium Announces Strategic Investments And Royalty Business Model.

Tesla Gigafactory Begins Battery Production: Lithium Supply Chain Goes All Around The Globe And Back To China.

We have another very important milestone for our Energy rEvolution. Tesla Gigafactory begins lithium battery production as planned by Elon Musk years ago. Another thing we have been discussing here for all these years is that there is no lithium under the floor of Gigafactory in Nevada. China controls now the market of lithium chemicals which are used to produce lithium cells. In a case of Tesla, Panasonic is still supplying lithium cells and buying its lithium materials from Chinese companies like Ganfeng Lithium. 

We are talking here about the security of lithium supply and market which is growing exponentially from the very low base of $1 billion in total sales in 2015. Now we have electric cars crossing the 1% of the sales of all new cars and attacking the exponential part of the adoption S-curve. Lithium market size will be driven by price and volume. 

The price of lithium in the finished battery is below 2% - 3%. Total volume last year was around 180,000 - 200,000 LCE T. Every 1% of increased share for electric cars in total auto sales demands new supply of 70,000 LCE T. China is talking about California style ZEV mandate with EVs to represent 8% of all new cars sales by 2018 and 12% by 2020! Last year we have just crossed 1.4% in China in sales for EVs... They are talking about EV market growth in China by 9-10 times in 3 years time. Watch the video."

‘China’ the Centre of the Lithium Universe.

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

(Please note that International Lithium is an exploration stage company and not producing any lithium materials yet. Company does not have any resources and/or reserves as it is defined by respective policies for disclosure by mining companies other than properly reported in its public filings on SEDAR) 

Please Note that International Lithium Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties in the Articles, News Releases or on the Links embedded in this blog post; you must NOT rely in any sense on any of this information in order to make any Resource or Value Calculation, or attribute any particular Value or Price Target to any Discussed Securities.

‘China’ the Centre of the Lithium Universe

Kirill Klip

President of International Lithium Corp.

The recent Volkswagen scandal has once again shed light on polluting vehicles and the health hazard they pose to the public and environment. In hopes of ending this tainted legacy, governments have begun implementing regulations to phase out emission causing vehicles. Respectively, all major automakers have followed suit and pledged to build dozens of electric vehicles in years to come.

Maybe you missed it, but China is now “The Center of the Lithium Universe”. China is already the world’s largest electric vehicle market. 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, there are currently 25 companies making 51 models of electric cars in China. Over 500,000 EVs will be sold in China this year alone. By comparison, it took GM 7 years to sell 100,000 Chevy Volts since 2009 which is projected to be also the total of sales for BYD just in this year! Read more."