Elon Musk: "What People Should Absolutely Have Zero Concern About Is That Tesla Will Achieve A 10,000 Unit Production Week By The End Of Next Year."

Elon Musk has revealed a few very interesting details about Tesla Model 3, upcoming Gigafactories and the future for lithium batteries during Tesla Motors, Inc. Second Quater 2017 Financial Results Q&A conference call. Today I would like to touch on the incredible rate of production he is planning to achieve in just one year time.

You can listen to the call here.

The following extracts are from Seeking Alpha transcript:

Elon Musk: "What we have ahead of us, of course, is an incredibly difficult production ramp. Nonetheless, I think we've got a great team, and I'm very confident that we will be able to reach a production rate of 10,000 vehicles per week towards the end of next year. And we remain – we believe on track to achieve a 5,000 unit week by the end of this year.

So, I would simply urge people to not get too caught up in what exactly falls within the exact calendar boundaries of a quarter, one quarter or the next, because when you have an exponentially growing production ramp, slight changes of a few weeks here or there can appear to have dramatic changes, but that is simply because of the arbitrary nature of when a quarter ends.

But what people should absolutely have zero concern about is that Tesla will achieve a 10,000 unit production week by the end of next year."

And this is why people will be buying these cars:

Elon Musk: "In the case of Model 3, we're strived hard to simplify and make sure that it has everything essentially to be a fantastic car. If you see the reviews, the reviews are – one could not ask for better reviews. And I just thought I'd give you one little anecdote, which was – which I found quite surprising is that when we were giving test drives to – or the journalists were driving the car and doing test drives. About 80% of the journalists said that they would buy the car themselves. Most of the remaining 20% said probably. This is crazy. I've never seen anything like it."

To put it into perspective: by the end of 2018, Elon Musk is aiming for production of 520,000 electric cars per year. It took GM 7 years to sell 100,000 Chevy Volts. Backed by Warren Buffet BYD, which is the largest electric cars manufacturer by now from China, has managed to produce and sell more than 100,000 EVs in 2016. Elon Musk will be making 5 times more per year by the end of next year at Tesla. This is why we are talking about the mass market for electric cars here. Lithium is the magic metal at the very heart of this Energy rEVolution.

Lithium Race At IMF: "Electric Cars Can Replace Motor Vehicles In The Next 10 To 25 Years."

Now IMF joins top financial institutions with its own very bold prediction: "Electric Cars Can Replace Motor Vehicles In The Next 10 To 25 Years." We are talking here about all cars being electric much faster than a lot of people think. Elon Musk with Tesla Model 3 launch is showing that "The Best Affordable Electric Car" is here and its mass production has started. 143 models of electric cars which will be available in the West by 2022 are announced already and there are more than 70 models of electric cars on sale in China now. 

Please note that in IMF's view for the electric cars my forecast of 36 million tonnes of LCE (Lithium Carbonate) to be produced by 2040 is very conservative and must be tripled in order to accommodate this transition to a fully electric fleet of new cars. According to The Economist, in the case of all new cars being electric by 2040, this fleet will count 1.8 Billion electric cars. We are talking here about over 100 million tonnes of LCE being produced by 2040 in order to make it happen. The starting point today is 200,000 tonnes of LCE produced in 2016.

Lithium is the magic metal at the very heart of this Energy rEVolution.  International Lithium is plugged into the very dynamic EVs and Energy Storage markets in China with its holdings in JV projects with Ganfeng Lithium, a giant from China. Finally, some buying volume is coming back into the market of lithium junior miners, investors are getting the message. Read more.

"We are finally moving into the mass market stage for EVs and related news is coming from all over the world. ElecTreck reports that Daimler is now announcing a new $740 million lithium battery factory in China. This project is a part of Daimler's new investments in JV with BAIC to build electric cars in China. Major automakers are not only decisively moving to electric cars like Volvo, but are trying to get a foothold in the largest auto market in the world in China. This announcement comes after we have learned about Tesla's negotiations in Shanghai to establish its own Gigafactory in China.

Electric cars are coming much faster than a lot of people are anticipating it and lithium supply chains will be under pressure from the demand side. There are reports already that lithium battery packs are in short supply and this rising demand for batteries will be driving the demand for lithium raw material supply. We have a total disconnect in the marketplace between exponential growth in EVs and ESS adoption rates and capital available to develop new lithium production. M&A will be an answer for some aggressive market players like Chinese, who are accumulating lithium assets all over the world now. After SQM news we are entering the new phase for the assessment of all M&A opportunities in the lithium sector."

Insiders Are Buying Into International Lithium As Ganfeng Moves Mariana JV Forward In Argentina.

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.

International Energy Agency: In Order To Limit Temperature Increase Below 2º C The Number Of Electric Cars Needs To Reach 600 Million By 2040.

"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."

Insiders Are Buying Into International Lithium As Ganfeng Moves Mariana JV Forward In Argentina.

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.

Executive Chairman And Directors Of International Lithium Participate In Second Tranche Of Private Placement Of Convertible Securities

International Lithium: Royalty And Strategic Investments Company Presentation.

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

"Kirill Klip, Executive Chairman of ILC stated, "We are very pleased with the results of the maiden resource estimation at the Mariana lithium potash brine project, together with our strategic partner Ganfeng Lithium. This project is now moving from an early exploration stage to an advanced exploration stage where it will be more easily compared to other lithium brine projects in Argentina. We are looking forward to follow up with Ganfeng Lithium on the recommendations of this report in order to ensure the rapid advancement of the project towards the pilot stage and to conduct further feasibility studies that will investigate the economic viability of the Mariana project."

Energy rEVolution And Lithium Race: International Lithium Presentation May 2017.

Energy rEVolution: Ganfeng Lithium Hits All Time High, Up Over 117% In A Year - The Lithium M&A Heatwave To Follow.

Ganfeng Lithium hits all time high and up over 117% from the year ago. The sales are booming and there is a total disconnect in the raw material supply lines and the exponential growth in the lithium battery capacity coming online. The heat wave of M&A in lithium sector will be one of the most spectacular in the all commodity space.

"The heat wave of Lithium M&A this summer has officially arrived. Lithium race now enters the ludicrous mode and SQM moves into the JV in Western Australia in the hard rock mining! SQM is the world's top lithium brine producer, but recent changes in Chile have brought some new challenges for the company. This move is diversifying SQM geographically and will allow finally increase the share of revenues in its fertilizers and chemicals stream towards lithium products. SQM is already engaged in JV with Lithium Americas and Ganfeng Lithium in the lithium brine project in Argentina. 

SQM is itself a target of constant dating from Chinese companies including Ganfeng Lithium and Tianqi. We have just recently discussed the advance from GSR, another Chinese company. Now we can better understand the announcement by Ganfeng Lithium in June when SQM stopped to ship concentrated brine from Chile to China. Please note the announcement that SQM and Kidman have agreed to develop a proposed downstream lithium refinery operation to produce lithium carbonate and hydroxide in WA. All lithium majors are entering into the direct competition now and building their own vertically integrated lithium businesses when the security of lithium supply is everything. This process will drive M&A and consolidation in our industry in this Lithium 2.0 stage."

World Bank: "There Could Be A More Than 1,000 Per Cent Increase In Lithium Demand For Batteries".

And now World Bank is joining the Lithium Race with its own prediction of more than 1,000 % increase in demand for lithium from batteries. Lithium is at the very heart of this Energy rEVolution and this story is finally making its way into the headlines. M&A wave in lithium space has only started this year. 

Lithium Race Ludicrous Mode: Chile’s SQM To Acquire 50% Stake In Mt Holland Lithium Project In Western Australia.

The heat wave of Lithium M&A this summer has officially arrived. Lithium race now enters the ludicrous mode and SQM moves into the JV in Western Australia in the hard rock mining! SQM is the world's top lithium brine producer, but recent changes in Chile have brought some new challenges for the company. This move is diversifying SQM geographically and will allow finally increase the share of revenues in its fertilizers and chemicals stream towards lithium products. SQM is already engaged in JV with Lithium Americas and Ganfeng Lithium in the lithium brine project in Argentina.

SQM is itself a target of constant dating from Chinese companies including Ganfeng Lithium and Tianqi. We have just recently discussed the advance from GSR, another Chinese company. Now we can better understand the announcement by Ganfeng Lithium in June when SQM stopped to ship concentrated brine from Chile to China. Please note the announcement that SQM and Kidman have agreed to develop a proposed downstream lithium refinery operation to produce lithium carbonate and hydroxide in WA. All lithium majors are entering into the direct competition now and building their own vertically integrated lithium businesses when the security of lithium supply is everything. This process will drive M&A and consolidation in our industry in this Lithium 2.0 stage.

Bloomberg: The Electric Car Revolution Is Accelerating - Production Of Lithium Will Increase More Than 100-fold.

And now Bloomberg is joining our discussion about critical secure lithium supply to feed this Energy rEVolution and the coming tide of electric cars. The total disconnect between the exponential growth of sales of electric cars and available secure lithium supply is making its way into the mainstream investment media.

For us here, it will not be a secret that BNEF is totally right to point out the main driving force of this coming Electric rEVolution - cheap lithium batteries change everything. The surprise is coming with the news from Audi - they are claiming to be able to purchase lithium batteries for the upcoming electric cars at $114 per KWh from China already! And I will not be surprised by it at all. With all that build up in lithium batteries capacity, the new coming players will bid for business now betting on mass volume production to bring the cost of lithium batteries fast down. We are entering the Solar Panels stage of total industry cost structure disruption for Lithium Batteries with China investing billions to corner this market as well.

Security of lithium supply is at the very base of this state-level investment game by China. In the end, you cannot participate in billions of dollars in available government funding if you cannot secure the supply of lithium raw materials to feed all this pyramid. Disruption of $12 Trillion dollars industries ($4 Trillion Transportation and $8 Trillion Energy and Utilities) is based on the $2 Billion dollars market by sales of lithium raw materials. And the price of that critical commodity is just under 2% of total cost of a lithium battery. We will have the very fast increase in lithium prices and the wave of M&A in our very small sector will be one of the most impressive ones, when billions will be chasing all available secure lithium supply trying to buy the time they have lost already. Read more.

Lithium Race From DIEselGate And Battery Boom: Germany To Take On Tesla With Another "Gigafactory Rival".

We all are very excited that the UK will ban sales of any new petrol and DIEsel cars from 2040. The ugly truth is that all those millions of illegal cancer hazard polluting cars will be straying on our streets and can be even sold until that time. But nothing is hopeless and people have started to realise the magnitude of "Clean DIEsel" disaster and all associated health risks. Go and try to sell your DIEsel car today - prices are plummeting already. Technology will bring the end of DIEsel and petrol cars much faster than a lot of people think. Now automakers in Germany are getting the message and jumping into electric cars.

Lithium battery Megafactories are mushrooming all around the world. At the moment, they are located mostly in China. Bloomberg is talking now about battery boom. Global battery capacity is set to double by 2021 from just over 100 GWh in 2016 to 278 GWh by 2021. This number can be even higher. Elon Musk has already upgraded his production targets at Gigafcatory from 35 GWh to 50 GWh and now he is talking about 100 GWh from 2022. 

This another "Tesla rival" in Germany will produce only 34 GWh by 2020. Speaking about Tesla Model 3 types electric cars with at least 60 kWh lithium batteries it will be translated into 567,000 EVs per year. This is a drop in the bucket if we compare this number with all those millions of cars produced annually in Germany. More lithium battery Megafactories will be coming. The breaking news came a few months ago that Audi is buying its lithium batteries at $114 per kWh from China. With a mass volume production of lithium batteries, we are getting closer to the Holy Grail for electric cars: lithium batteries priced at $100 per kWH. Electric cars will become better and cheaper than any comparable proposition with DIEsel or even petrol engine. This Switch will be happening very soon with millions of people buying electric cars.

Lithium Race At IMF: "Electric Cars Can Replace Motor Vehicles In The Next 10 To 25 Years."

Now IMF joins top financial institutions with its own very bold prediction: "Electric Cars Can Replace Motor Vehicles In The Next 10 To 25 Years." We are talking here about all cars being electric much faster than a lot of people think. Elon Musk with Tesla Model 3 launch is showing that "The Best Affordable Electric Car" is here and its mass production has started. 143 models of electric cars which will be available in the West by 2022 are announced already and there are more than 70 models of electric cars on sale in China now. 

Please note that in IMF's view for the electric cars my forecast of 36 million tonnes of LCE (Lithium Carbonate) to be produced by 2040 is very conservative and must be tripled in order to accommodate this transition to a fully electric fleet of new cars. According to The Economist, in the case of all new cars being electric by 2040, this fleet will count 1.8 Billion electric cars. We are talking here about over 100 million tonnes of LCE being produced by 2040 in order to make it happen. The starting point today is 200,000 tonnes of LCE produced in 2016.

Lithium is the magic metal at the very heart of this Energy rEVolution.  International Lithium is plugged into the very dynamic EVs and Energy Storage markets in China with its holdings in JV projects with Ganfeng Lithium, a giant from China. Finally, some buying volume is coming back into the market of lithium junior miners, investors are getting the message. Read more.

"We are finally moving into the mass market stage for EVs and related news is coming from all over the world. ElecTreck reports that Daimler is now announcing a new $740 million lithium battery factory in China. This project is a part of Daimler's new investments in JV with BAIC to build electric cars in China. Major automakers are not only decisively moving to electric cars like Volvo, but are trying to get a foothold in the largest auto market in the world in China. This announcement comes after we have learned about Tesla's negotiations in Shanghai to establish its own Gigafactory in China. 

Electric cars are coming much faster than a lot of people are anticipating it and lithium supply chains will be under pressure from the demand side. There are reports already that lithium battery packs are in short supply and this rising demand for batteries will be driving the demand for lithium raw material supply. We have a total disconnect in the marketplace between exponential growth in EVs and ESS adoption rates and capital available to develop new lithium production. M&A will be an answer for some aggressive market players like Chinese, who are accumulating lithium assets all over the world now. After SQM news we are entering the new phase for the assessment of all M&A opportunities in the lithium sector."

Bloomberg:

Germany set to announce a new plant designed to rival Tesla's Gigafactory

TNR Gold: McEwen Mining Moves Giant Los Azules Copper Forward - New PEA Is Expected In The Third Quarter 2017.

Mcewen Mining provides a further update on Los Azules copper project in Q2 2017 Operations & Financial Results:

"Los Azules Project, Argentina (100%) – PEA in Third Quarter 2017

During Q2 2017 we spent $0.8 million at the Los Azules project, primarily on finalizing the 2017 drilling campaign initiated in Q1. We are currently preparing a new Preliminary Economic Assessment (PEA), which is expected in the third quarter of 2017."

Please Note that TNR Gold Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties; 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.

TNR Gold: McEwen Mining Moves Giant Los Azules Copper Forward With Exploration And New PEA Study.

McEwen Mining 2017 AGM presentation provides more information on the very impressive advance of Los Azules copper project in Argentina. TNR Gold holds Royalty on Los Azules copper with McEwen Mining.

McEwen Mining 2017 AGM Presentation

Please Note that TNR Gold Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties; 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.

TNR Gold Investor Presentation

TNR Gold Corp. is working to become an energy metals royalty company.

TNR, through its lead generator business model, has been successful in generating high quality exploration projects in the Americas and Europe. With the Company’s expertise, resources and industry network, it identified the potential of the Los Azules copper project in Argentina and now holds a 0.36% NSR Royalty on the prospect.

At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska (the Shotgun gold porphyry project) and Argentina, and is committed to continued generation of in-demand projects, while diversifying its markets and building shareholder value.

TNR is a major shareholder of International Lithium Corp. (TSXV:ILC) (“ILC”), a green energy metals company that was created through the spinout of TNR’s energy metals portfolio in 2011.  ILC holds interests in lithium projects in Argentina, Ireland and Canada. TNR continues to hold approximately 15% of the outstanding shares of ILC.

TNR retains a 1.8% NSR Royalty on ILC’s Mariana lithium property in Argentina. ILC maintains a right to repurchase 1.0% of the NSR on the Mariana property. The Company would receive $900,000 on exercise of the repurchase right. The project is being advanced in a joint venture between ILC and Ganfeng Lithium International Co. Ltd., a leading lithium product manufacturer seeking to secure its raw materials supply.

All slides below are from McEwen Mining 2017 AGM Presentation

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 TNR Gold Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties; 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.

Lithium Race At IMF: "Electric Cars Can Replace Motor Vehicles In The Next 10 To 25 Years."

Now IMF joins top financial institutions with its own very bold prediction: "Electric Cars Can Replace Motor Vehicles In The Next 10 To 25 Years." We are talking here about all cars being electric much faster than a lot of people think. Elon Musk with Tesla Model 3 launch is showing that "The Best Affordable Electric Car" is here and its mass production has started. 143 models of electric cars which will be available in the West by 2022 are announced already and there are more than 70 models of electric cars on sale in China now. 

Please note that in IMF's view for the electric cars my forecast of 36 million tonnes of LCE (Lithium Carbonate) to be produced by 2040 is very conservative and must be tripled in order to accommodate this transition to a fully electric fleet of new cars. According to The Economist, in the case of all new cars being electric by 2040, this fleet will count 1.8 Billion electric cars. We are talking here about over 100 million tonnes of LCE being produced by 2040 in order to make it happen. The starting point today is 200,000 tonnes of LCE produced in 2016.

Lithium is the magic metal at the very heart of this Energy rEVolution.  International Lithium is plugged into the very dynamic EVs and Energy Storage markets in China with its holdings in JV projects with Ganfeng Lithium, a giant from China. Finally, some buying volume is coming back into the market of lithium junior miners, investors are getting the message. 

"We are finally moving into the mass market stage for EVs and related news is coming from all over the world. ElecTreck reports that Daimler is now announcing a new $740 million lithium battery factory in China. This project is a part of Daimler's new investments in JV with BAIC to build electric cars in China. Major automakers are not only decisively moving to electric cars like Volvo, but are trying to get a foothold in the largest auto market in the world in China. This announcement comes after we have learned about Tesla's negotiations in Shanghai to establish its own Gigafactory in China.

Electric cars are coming much faster than a lot of people are anticipating it and lithium supply chains will be under pressure from the demand side. There are reports already that lithium battery packs are in short supply and this rising demand for batteries will be driving the demand for lithium raw material supply. We have a total disconnect in the marketplace between exponential growth in EVs and ESS adoption rates and capital available to develop new lithium production. M&A will be an answer for some aggressive market players like Chinese, who are accumulating lithium assets all over the world now. After SQM news we are entering the new phase for the assessment of all M&A opportunities in the lithium sector."

IMF: Riding The Energy Transition - Oil Beyond 2040

We Need 36 Million Tonnes Of Lithium To Be Produced By 2040 For IEA Plan: 600 Million Electric Cars.

International Energy Agency: In Order To Limit Temperature Increase Below 2º C The Number Of Electric Cars Needs To Reach 600 Million By 2040.

"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."

IMF Blog:

Chart of the Week: Electric Takeover in Transportation

By IMFBlog

July 31, 2017 

An electric car recharges at a meter in London: The UK is the latest country to announce plans to end fossil fuel vehicle sales by 2040 (photo: Sasha Fox Walters/iStock by Getty Images)

The switch from horses to automobiles in the 20^th century paved the way for the rise of oil-based transportation and energy use. Today, electric vehicle ownership is picking up speed. Greater affordability of electric vehicles will likely steer us away from our current sources of energy for transportation, and toward more environmentally friendly technology. And that can happen sooner than you think.

Our Chart of the Week from a recent IMF working paper shows that the transition away from motor vehicles could happen in the next 10 to 25 years, based on parallel shifts in the 20^th century. Patterns observed in the early days of the horse-car transition closely resemble present-day electric vehicle adoption rates. Between 2011 and 2015, the average annual growth rate of electric vehicle ownership was 120 percent. This is, in fact, slightly faster growth than that of motor vehicles during a comparable timeframe in the past. Using the horse-car parallel, the paper forecasts that by 2040 motor vehicles could mostly disappear in advanced economies, and could comprise about a third of the fleet of all cars in emerging market and developing economies.

Even as Tesla spearheads the transition to electric vehicles, the auto industry is also focusing greater attention on electric vehicles and rapidly increasing the number of models offered, including SUVs. As recently as last month, Volvo announced that it will produce only electric or plug-in hybrids as early as 2019.

Meanwhile, many countries are running with the idea. Both the UK and France are aiming to phase out diesel and gas vehicles by 2040. China has become the largest market for electric vehicles, and India recently announced ambitious plans to get millions of electric vehicles on the road by 2030. Every month seems to bring news confirming a global shift in transportation technology.

But the switch to electric cars has deep implications for the auto industry, climate change, and the oil market.

The auto industry must shift gears to deal with potential disruption. Electric cars take fewer parts to produce, and require less maintenance than motor vehicles. Therefore, investment in people is critical—whether job training or reskilling programs—to enable workers in both advanced and emerging market economies to work with new technologies, such as self-driving cars and in industries such as battery production.

At the same time, the environmental benefits could be huge, leading to reduced emissions over time, and helping achieve the climate change goals of the Paris accord. What this means is that policymakers and businesses must anticipate the potential consequences of the rise of electric cars and start implementing the right policies for a smooth ride.

Stay tuned for a forthcoming blog on the implications for the oil market."