Thursday, 7 December 2017

Ganfeng Lithium, The Largest Integrated Lithium Producer In China, Invests USD $38 Million To Build Solid-State Battery Plant.




This is why I call International Lithium's JV partner In Argentina and Ireland Ganfeng Lithium a vertically integrated lithium business. Ganfeng is the largest integrated lithium materials producer in China and in the "New Lithium Top Five" now. After incredible growth in its main lithium chemicals business, this company is moving forward towards the high-end value of the Energy rEVolution supply chain. 



Ganfeng has been engaged in lithium batteries business before after acquisition of mobile battery maker in China. Now they are taking a very serious step to embrace the new technology for lithium batteries. Lithium Solid State Battery is the next chapter for electric cars and Energy Storage which can bring lithium batteries prices below $100 per kWh and give over 500 miles range on a single charge for Tesla Model S.





"I will not be surprised that we are going for another treat in our Lithium Technology space by Elon Musk! Chatting with my friends today on twitter we are getting a drift that actually Tesla can be moving into the prismatic lithium cells to be produced at Gigafactory and used in Tesla Model 3 and its other EV models. I will speculate that in this case, we are talking about Solid State Lithium Batteries. Solid State Lithium Technology is the new breakthrough which promises safer batteries with higher energy density. They promise higher performance, even lower memory effect and no thermal run away. Translation - batteries will be more powerful and much safer allowing you to store the larger amount of Energy in the same volume and weight! Is it the magic which allows Elon musk to go as low as $100 per kWh cost of lithium batteries to be produced at Gigafactory?" Read more.




Update 10.12.2017:

I am listening to more and more very interesting comments about New Tesla Roadster and think that quite widely spread idea that this monster electric supercar from Elon Musk is powered by double-decker sandwich made of 2 Tesla Model S 100 batteries is not the case. Maybe, it is time to revisit my speculations about Elon Musk working on Lithium Solid State Battery for Tesla model 3 at Gigafactory. It still remains a speculation at this moment but it will make all sense taking into account dimensions of New Tesla Roadster, its incredible performance and price. It can explain the totally unexpected very aggressive low pricing for Tesla Semi Truck as well. Has Elon Musk cracked the code of the Holy Grail of the mass market for electric cars already? Any insights from my readers will be very much appreciated.








Lithium is the magic metal at the very heart of this Energy rEVolution. Ganfeng Lithium has started very early to secure supply of lithium by investing in International Lithium IPO in 2011 and now we are developing two JV projects: Mariana in Argentina and Avalonia in Ireland. Below you can find more information.





Tesla's rEVolution: The Dramatic Increase In Demand For Lithium Will Require Accelerated Production From All Known Reserves Of Lithium.





Tesla's rEVolution: The Dramatic Increase In Demand For Lithium Will Require Accelerated Production From All Known Reserves Of Lithium.

Kirill Klip, Executive Chairman of International Lithium Corp.




Tesla New Roadster And Electric Semi Truck.



I am a very strong believer in the ongoing fundamental shift in technology which is happening these days. We are entering the era of Post Carbon Economy. The Oil ICE Age is over: for centuries we have been burning things just to get the energy and it has been mostly oil for the last 100 years, but now we can produce electricity by using Solar and Wind Power Generation.





Electricity is the best and the most efficient form of energy known to us and now we can store it and use it when we really needed it. Cheap lithium batteries change everything. Electric Cars will become cheaper to own than comparable models of fuel-powered cars next year according to UBS. Tesla Model 3, with more than 400,000 advance reservations for purchase is starting the real mass market for electric cars. Now Bloomberg estimates that more than 200 models of electric cars will be available by 2020.






We are at the tipping point for the mass market of electric cars. It took us all human history to get to 1 million electric cars on the roads by 2015 and then less than a couple of years to double this EV fleet. I expect that in 2018, worldwide sales of EVs will exceed 1 million units per year.






We are in the exponential stage of the adoption rate for electric cars, but most of the investment banks who are following lithium batteries' supply chains are still estimating 5% - 10% of cars being sold in the next 5 years will be EVs. I have a different view: that all cars will be electric mush faster than a lot of people are anticipating. We are talking here about the disruption of $4 Trillion Transportation and $8 Trillion Energy industries. 

Energy storage for Solar and Wind power generation will be consuming, even more, lithium batteries than transportation in the future. Disruption of $12 Trillion industries is reliant on the lithium market which was last year around 200,000 T of Lithium Carbonate Equivalent ("LCE") in production terms. In monetary value, it was close only to $2.5 Billion dollars in sales even after the dramatic increase in lithium prices. 





This is why we are witnessing very strong prices this year, when spot prices in Shanghai are above $20,000 for both LCE and Lithium Hydroxide and long-term prices are reaching $15,000 per LCE T. This view of the ongoing fundamental shift and that The Switch is already happening, when millions of people will be buying electric cars, is finally making its way in the mainstream media and in the reports of government agencies and major financial institutions.









The views on the rate of adoption for electric cars can be different, but industry trends are already supporting this very bullish case for lithium. "Old Lithium Big Three": Albemarle, SQM and FMC "had to accept" the new aggressive players: Ganfeng Lithium and Tianqi from China. "The New Lithium Top Five" now looks more like: Albermarle, SQM, Ganfeng Lithium, Tianqi and FMC. But if we will be talking about lithium supply chain in terms of lithium chemical products used in lithium batteries, China is already in the lead and controls close to 75% of supply. For example, Tesla Gigafactory lithium supply chain goes all around the globe and back to China as well. And now there are 24 Lithium Megafactories announced to be built all around the world with the majority of them being located in China.





We are already witnessing the wave of consolidation in the sector in order to secure the supply of lithium as raw material, which is becoming critical. SQM is diversifying this year from brine lithium operations into hard rock lithium mining with its JV partner Kidman Resources in Australia following Albemarle. Tianqi bought 51% in Talison Lithium in Australia with Rockwood holding 49% in 2014 and after that Albemarle has acquired Rockwood and this way becoming partners with Tianqi.






Ganfeng Lithium, the largest integrated lithium producer from China, was very early in securing the supply chain for lithium raw materials. Ganfeng has acquired the strategic stake in International Lithium IPO in 2011 and now operates two JVs with ILC: Mariana lithium brine project in Argentina and Avalonia with lithium hard rock exploration in Ireland. Ganfeng has bought a stake in Neometals and in its lithium hard rock mining operations at Mt Marion lithium project in Australia in 2015. This year Ganfeng has bought a stake in Lithium Americas and its JV developing lithium brine operations with SQM in Argentina. Last spring Ganfeng acquired another stake in Australian lithium developer Pilbara Minerals, this time 5%, suggesting that Ganfeng is really after null of supply. The main part of the deal is the off-take agreement for 160,000 T of lithium concentrate.




But M&A in the lithium sector can only redistribute the existing known resources of lithium. The next phase of the game to secure supply for the Energy rEVolution will the advanced exploration and new technologies to recover lithium. We are talking a lot about the new groundbreaking technologies for electric cars and lithium batteries. Now it is time to consider the most advanced technologies for the production of lithium as a raw material. The increasing usage of lithium batteries is driving the demand for lithium as a raw material and new extraction technologies will provide the technological advantage to the most progressive companies investing in the future.







My lower estimate for future demand is that 36 million tonnes of LCE (Lithium Carbonate Equivalent) must be produced by 2040 in order to meet the IEA's target for the 600 million electric cars necessary to keep global temperature increase below 2%. However, over 100 million tonnes of LCE will be needed if all new cars are to be electric by 2040, this being one of IMF's scenarios for the future. Now let's just start adding here the Energy Storage for Solar and Wind Power Generation.







Our starting point for electric cars is just over 1% of total auto sales in the world and only 200,000 tonnes of LCE produced in 2016. The dramatic increase in demand for lithium will require accelerated production from all known reserves of lithium and new resources will need to be found and put into production, this being crucial to the Energy rEVolution.





At International Lithium, we are very interested in processes developed for the recovery of Lithium Hydroxide directly from brine. Lithium Hydroxide is the highly sought strategic commodity which is used in lithium batteries as Tesla and Panasonic are doing for example at Tesla Gigafactory


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




In September International Lithium has announced that it has received a final report, "Proof of Concept Study — Lithium Recovery Using Membrane Separation" (the "Study") prepared by Synexus (Pty) Limited of South Africa ("Synexus"). The Study was conducted utilizing (filtered) raw brine from the Salar de Llullaillaico, location of the Mariana lithium brine joint venture project ("Mariana") in Salta, Argentina. Results from the Study indicate that the selective recovery of lithium directly from raw (filtered) brine, with the simultaneous rejection of other cation and anion species, using a proprietary lithium selective separation process (the "technology") is possible. Lithium was selectively recovered from the raw brine to produce lithium hydroxide ("LiOH"), a high-value ingredient used directly in lithium battery manufacturing, as a final product.







Summary of Study Results:
  • The use of the technology presents a possible alternative to the natural evaporation process currently proposed at Mariana.
  • The technology could provide a process route to produce lithium hydroxide directly from the raw brine without the need to remove contaminants like magnesium by liming, as would be required in the natural evaporation process. 
  • Based on initial estimates, the technology can achieve higher recoveries than natural evaporation even with relatively low concentrations of lithium.*
  • Use of technology has the potential to enable a considerable increase in production rate compared to evaporative ponds. Lithium is directly removed from the brine and the (spent) brine can be returned to the basin with little effect on the water balance.* 
  • With further refining, the technology could also permit the recovery of potassium and other cations if desired.


Now Mariana JV partners Ganfeng Lithium and International Lithium are studying the results of this report and the best way to incorporate the advanced lithium extraction technologies into  Mariana Lithium development phase leading to Preliminary Economic Assessment and Pre Feasibility studies of the project. 



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.

Yicai Global:

Chinese Lithium Firm Invests USD38 Million to Build Solid-State Battery Plant


DOU SHICONG

Chinese Lithium Firm Invests USD38 Million to Build Solid-State Battery Plant
 Chinese Lithium Firm Invests USD38 Million to Build Solid-State Battery Plant
(Yicai Global) Dec. 6 -- Jiangxi Ganfeng Lithium Co. [SHE:002460], a leading Chinese lithium product maker, plans to invest CNY250 million (USD38 million) to build a production line in Zhejiang province for its first-generation solid-state lithium batteries.
The listed firm will set up a new company in Ningbo, Zhejiang to build the plant, it said. Construction will take around two years. After completion, Jiangxi Ganfeng’s annual battery-making capacity will increase to 100 million watt-hours. The firm hopes to release the product onto the new-energy vehicle (NEV) market.
Compared with the widely used liquid lithium battery, its solid-state counterpart has a higher energy-density, making it more suitable to power electric vehicles. Data shows that the latter could replace the former as the mainstream power source
Construction of the production line will speed up the company’s research, development and industrialization of new lithium battery technology and optimize the structure of the lithium industry chain, the company said, adding that the new plant will make it more competitive.
Founded in 2000, Ganfeng Lithium makes more than 30 different lithium products. The battery maker sells most of its products in China, but also exports its most comprehensive equipment to the US, Japan, South Korea, the European Union and Southeast Asia."

Wednesday, 6 December 2017

International Lithium Receives Encouraging Pump Test Results On Mariana Lithium Brine Project, Argentina.



“The ongoing confirmation that the aquifers at Salar de Llullaillaco can sustain extending pumping are complementary to our goals of achieving a positive production decision through upcoming Preliminary Economic Assessment and Feasibility Studies,” commented Kirill Klip, Executive Chairman of ILC, “These tests pave the way for us to determine the best technology and economic scenario to advance our Mariana Lithium joint venture project.”







International Lithium Receives Proof Of Concept Study For Lithium Recovery Using Membrane Separation.



"We consider this report very encouraging news for the advancement of our Mariana Lithium JV Project," commented Kirill Klip, Executive Chairman of ILC.




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.


Lithium Hydroxide Production From Brine: Effective Separation Of Lithium From Contaminants By Membrane Technology.



Lithium Hydroxide Production From Brine: Effective Separation Of Lithium From Contaminants By Membrane Technology.

Kirill Klip, Executive Chairman International Lithium Corp.

We are talking here a lot about the new groundbreaking technologies for electric cars and lithium batteries. Now it is time to consider the most advanced technologies for the production of lithium as a raw material. The increasing usage of lithium batteries is driving the demand for lithium as a raw material and new extraction technologies will provide the technological advantage to the most progressive companies investing in the future.

My lower estimate for future demand is that 36 million tonnes of LCE (Lithium Carbonate Equivalent) must be produced by 2040 in order to meet the IEA's target for the 600 million electric cars necessary to keep global temperature increase below 2%. However, over 100 million tonnes of LCE will be needed if all new cars are to be electric by 2040, this being one of IMF's scenarios for the future. Now let's just start adding here the Energy Storage for Solar and Wind Power Generation.

Our starting point for electric cars is just over 1% of total auto sales in the world and only 200,000 tonnes of LCE produced in 2016. The dramatic increase in demand for lithium will require accelerated production from all known reserves of lithium and new resources will need to be found and put into production, this being crucial to the Energy rEVolution.

At International Lithium, we are very interested in processes developed for the recovery of Lithium Hydroxide directly from brine. Lithium Hydroxide is the highly sought strategic commodity which is used in lithium batteries as Tesla and Panasonic are doing for example at Tesla Gigafactory. Read more."


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



International Lithium:

International Lithium Receives Encouraging Pump Test Results on Mariana Lithium Brine Project, Argentina

Vancouver, B.C. December 6, 2017: International Lithium Corp. (the “Company” or “ILC”) (TSX VENTURE: ILC) is pleased to announce that it has received a report prepared by Geos Mining Minerals Consultants of Australia (“Geos”) through ILC’s joint venture partner, Mariana Lithium Co., Ltd., a subsidiary of Jiangxi Ganfeng Lithium Co., Ltd. The report summarizes results from trial pump tests conducted in September 2017 at Salar de Llullaillaico, location of the Mariana lithium brine joint venture project (“Mariana”) in Salta, Argentina. The trial tests are part of ongoing pump tests to be completed at three locations on the project. A conclusion from the trial pump test report states, “A step-drawdown test pumped at three (3) rates of between 10 and 30 litres per second (“L/s”) indicated a high transmissivity, hydraulic conductivity and storativity.” The ultimate goal for these ongoing tests is to carry out long term pumping at a constant rate of 60 L/s at three sites within the resource area. The Company will provide further updates on the progress of these tests.

The study results from the Geos report are summarized below:
  • Litio Minera Argentina SA conducted trial pump tests on bore MA17-20PW, located in the Mariana Project western Salar de Llullaillaco resource area during September 2017. An exploratory aquifer test with observation bores was conducted to provide: training and understanding to staff, preliminary aquifer drawdown and response assessment, plus a step-drawdown test to provide information on well efficiency.
  • Initially a constant rate test utilising five observation bores was conducted for a five hour period pumping at 30.4 L/s. Minor drawdown was observed in observation bores monitoring both higher and lower parts of the aquifer system. No drawdown was observed in more distal observation bores. 
  • The lack of drawdown in shallower observation bores, plus the one deeper observation bore MA17-20A, indicates that the pumped aquifer at the level of MA17-20B is acting in a nearly confined manner, and there was minimal interaction over the short pumped time period with overlying or underlying aquifers. 
  • A step-drawdown test pumped at 3 rates of between 10 and 30 L/s indicated a high transmissivity, hydraulic conductivity and storativity. 
Whilst no modelling of the drawdown from the trial pumping tests was undertaken, preliminary graphical analysis suggests the salar interlayered and intercalated sedimentary package makes up an interconnected leaky aquifer system at site MA17-20PW. This aquifer system has a very high transmissivity, high hydraulic conductivity and a significant storativity.
“The ongoing confirmation that the aquifers at Salar de Llullaillaco can sustain extending pumping are complementary to our goals of achieving a positive production decision through upcoming Preliminary Economic Assessment and Feasibility Studies,” commented Kirill Klip, Executive Chairman of ILC, “These tests pave the way for us to determine the best technology and economic scenario to advance our Mariana Lithium joint venture project.”
At Mariana, the current focus for lithium extraction is to determine the break points of contaminants such as magnesium and sulphate in the natural evaporation process in order to define the timing of the liming process. Large quantities of lime and other reagents needed to neutralize the brine chemistry to prevent the loss of lithium through precipitation during the evaporation concentration process generally tend to have a severe negative impact on the economics of lithium brine operations.
In its news release of September 5, 2017, the Company released results of an early study regarding the utlilization of membrane technology to produce a much higher valued lithium product. The adoption of alternative technologies such as described in the September 5, 2017 news release have potential to provide an alternative to the currently adopted plan of using natural solar evaporation to produce a brine concentrate that would be exported to China for further refining.
The Mariana Lithium joint venture partners are currently reviewing options for the 2018 budget year that are aimed at accelerating the project through the studies required to prove economic viability.
Afzaal Pirzada, P.Geo., a “Qualified Person” for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.
On behalf of the Board of Directors,
Kirill Klip
Executive Chairman
 For further information concerning this news release please contact +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 or forward-looking statements in this news release include: the timing and anticipated results of environmental impact studies and pump tests, timing of preliminary economic studies on the Mariana project, the expectation of feasibility studies, lithium recoveries, modelling of capital and operating costs, and the Company’s continued interest in the Mariana project. 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 “Risks” and “Forward-Looking Statements” in the interim and annual Management’s Discussion and Analysis which are available at www.sedar.com. While management believes that the assumptions made are reasonable, there can be no assurance that forward-looking statements will prove to be accurate. 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 expectations, estimates and opinions of management on the dates they are made that, while considered reasonable by the Company as of the time of such statements, are subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect 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.

Sunday, 3 December 2017

Energy rEVolution: The Big Picture - New Tesla Roadster Beats All Production Supercars And Tesla Semi Truck Will Change Logistics As We Know It.



Coldfusion TV has produced another brilliant video highlighting the unbelievable performance of the New Tesla Roadster which is breaking all the records. This is a true testament to the progress made by lithium technology developed by Tesla, particularly when you are comparing the performance of New Tesla Roadster to the other supercars. The world is looking at the future of cars! 

Tesla Semi Truck is already making its way in the order books of corporate giants like Walmart and DHL. Some analysts are talking that "Tesla Semi Truck is cheaper than DIEsel Semi Trucks, can bring about 75% cost reduction per tone/mile (!) and will completely change logistics as we know it." 





I am a very strong believer in the ongoing fundamental shift in technology which is happening these days. We are entering the era of Post Carbon Economy. The Oil ICE Age is over: for centuries we have been burning things just to get the energy and it has been mostly oil for the last 100 years, but now we can produce electricity by using Solar and Wind Power Generation. 

Cheap lithium batteries change everything. Electric Cars are already cheaper to own and run than comparable fuel-powered cars and we are at the tipping point for the mass market for electric cars. Lithium is the magic metal at the very heart of this Energy rEVolution and security of supply is now everything for all players involved in this exponentially growing markets for electric cars and energy storage. 





Elon Musk Goes Maximum Plaid In Lithium Race With The Fastest Car Ever Made: Unveiling New Tesla Roadster From Electric Tesla Semi Truck.




Elon Musk has reminded everybody yesterday who is calling all the shots in the most advanced lithium technology which will be propelling all our transportation in the future. Performace data for the Tesla Electric Semi Truck is really incredible and economics to operate it will make The Switch happening in the trucking industry as well. According to Elon Musk, Tesla Semi Truck can even beat rail on cost! Tesla Semi Truck will have 500 miles range and can be charged by Tesla Supercharges. The Super Electric Truck from Tesla is coming in 2019 with enhanced automatic driving as standard.





New Tesla Roadster unveil was a total surprise and now we can enjoy the next breakthrough in the extreme performance of the Electric Supercars. 250 kWh of lithium batteries will give you "stupid" power and over 1,000 km range on a single charge. Tesla Roadster is scheduled for production in 2020.





The future is very bright for Tesla, just do not expect its share price to go always only up. Tesla Model Y will add to the Tesla portfolio proposition and will be taking on the most lucrative business of other automakers. The ramp up of Tesla Model 3 production will be the most important for Elon Musk now, following by the security of lithium supply, which I have been discussing at length below. I do hope that Elon Musk will position his dream about fully autonomous driving in the right way and those unavoidable setbacks in this particular part of technology will not put an unnecessary strain on the otherwise incredible technological advance made by Tesla.

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 To Mass Market For Electric Cars: First In-Depth Look At Tesla Model 3 - The Best Affordable Electric Car.



Tesla Model 3 Club guys continue their brilliant work on promoting the first best affordable electric car: Tesla Model 3. Now you can appreciate the most important electric car in the 21st century in 4k with full details. We hear a lot about production problems at Tesla these days, but do not make any mistake - the history is already made. Tesla has brought the earthquake to the auto industry, now all automakers have to follow the lead and the real Tsunami of Electric Cars is coming.





Regarding the problems, expect more to come, but they will all be gone in time. Ramping production is never easy, but Tesla is ahead of everybody else in EV game. My real concern is that autonomous driving can become the bad spell on incredible magic made by Elon Musk. I wish him all the luck but really would like to see that he is taking his own success seriously.





Elon Musk is jump-starting the real mass market for electric cars now. Security of lithium supply will be so much more important than autonomous driving in the next few years. Tesla cannot just rely on Panasonic and Samsung to deliver the cells for Tesla batteries. Tesla supply chain for lithium goes all over the globe and back to China.





Autonomous driving is great and will be happening, but not before technology and, the most important, our society are both ready for it. Any problems here, which will be unavoidable, will be used against Tesla and can, potentially, hold it back. If China starts the real control of Lithium Supply Chain allocating resources first to its own EV and Lithium Battery makers, then Tesla and all automakers in the West will be facing the real problem. Mass production of electric cars will be happening in China. I do hope that this message is getting through now.







Chasing Tesla: Who Controls The Supply Chain For The Energy rEVolution - 20 Lithium Megafactories Are Coming.



Benchmark Mineral Intelligence has launched another blockbuster event covering the Lithium rEVolution - Cathodes 2017. Simon Moores and his team are the best in connecting the rapid growth of Electric Cars and Energy Storage industries with in-depth analysis of supply chains which are making this Energy rEVolution happening. Tesla has brought the earthquake to the auto industry, Elon Musk is "thinking hard about new Gigafactories number 3, 4, 5 and 6"; but there are already another 19 are in the making.

This month Simon has delivered his message to the US Senate - access to the critical commodities will define the new geopolitical power set for the 21st century. Billions of dollars in investments in the whole battery supply chain are needed urgently just to keep access to the raw materials. Private companies in the West like Tesla are competing with The New Energy Plan in China.







While the Old Empire was fighting wars protecting the Oil blood flowing in the world economy, state-level planning in China has been building the totally new landscape for the economic growth in the Post Carbon Economy. One by one all critical bottlenecks in the new supply chains were taken under control. The ICE Age is over and new players are taking over. This geopolitical tectonic shift after Tesla earthquake is happening very fast, the Tsunami of Electric Cars is coming and lithium is the magic metal at the very heart of this energy rEVolution.






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. 


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