Wednesday, 16 August 2017

The Centre Of The Lithium Universe: China Sells More Electric Cars Than Any Other Country.



After all news from Tesla, it is time to check what is happening in The Centre Of The Lithium Universe. In the end, the majority of all Lithium Megafactories is located in China and The World Economic Forum's video gives us a few more data points to illustrate how Energy rEVolution is taking China over when Reds are going Green.




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 alreadyRead more.






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. Read more.
"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 alreadyRead more.

Tuesday, 15 August 2017

Lithium Race To The Mass Market. Forbes: What Is The Best-selling Electric Car In America? A Tesla. The Second? Also A Tesla.



This observation from Forbes is very important to the understanding of how fast the exponential part of S-curve for mass market adoption rate of the electric cars will grow. We have just crossed 1% in global auto sales for electric cars and now Tesla Model 3 will ignite the attack on the ICE Age worldwide. The Economist is writing about the death of the ICE engines and the next news about the critical issue of security for lithium supply will hit the headlines. So far Chinese companies are very happy buying at the floor level valuations all the best lithium projects in the world. When the West will wake up finally?





Tesla Model S and X have made 45% of all electric cars sales in the US this year! They are the best electric cars, but they are the most expensive once as well. Somebody has put it brilliantly about Tesla Model 3: "We had the best electric cars and we had the affordable electric cars. Now we have the best affordable electric car". 

BYD is very proud to be back on the wave in China in July with over 11k EVs sold, it gives us over 130k per year EVs sold annualized. Elon Musk is talking about the rate of production with 20k Teslas per month by the end of this year and over 500k per year by the end of 2018. Now he estimates the demand for Tesla Model 3 at 700k per year. Bloomberg estimates that we will be able to choose from 200 EV models by 2020. The market is not even close to the proper translation of what kind of EV tsunami is coming and how it will affect the demand for lithium and other energy metals.




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.


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."

Friday, 11 August 2017

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




"Three insiders of the Company participated in this tranche of the private placement and subscribed for a face value of $475,000 in convertible securities. Participation by the three insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company did not file a material change report 21 days prior to the closing of the private placement as the details of the participation of insiders of the Company had not been confirmed at that time."


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.

You can find all latest financial information in ILC's SEDAR filings and insiders filings on SEDI.



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





"Two insiders of the Company participated in this tranche of the private placement and subscribed for a face value of $300,000 in convertible securities. Participation by the two insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions."


International Lithium Announces Close Of First Tranche Of Private Placement Of Convertible Securities.


"Two insiders of the Company participated in the private placement and subscribed for a face value of $100,000 in convertible securities. Participation by the two insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions." Read more.


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.

You can find all latest financial information in ILC's SEDAR filings and insiders filings on SEDI.



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




Exploration target at Mariana Lithium, Argentina. 
International Lithium NI 43-101 report.






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."



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 Lithium Announces Multiple High-Grade Lithium Pegmatites Intersected at Mavis Lake Project, Ontario, Canada




“We are very pleased with the results Pioneer have achieved at Mavis and look forward to continued exploration success,” stated Kirill Klip, CEO of ILC. “Our concept of the Upper Canada Lithium Pool is moving forward and ILC has another lithium project in its portfolio moving toward a more advanced exploration stage. This success supports our strategy utilizing strategic partnerships to advance projects with the ultimate goal to secure lithium supply for the ongoing electrification of our transportation and energy storage applications.”





International Lithium Closes Final Tranche of Private Placement of $1,000,000 Convertible Securities

Vancouver, B.C. August 10, 2017: International Lithium Corp. (the “Company” or “ILC”) (TSX VENTURE: ILC) is pleased to announce that it has closed the final tranche of its previously announced $1,000,000 non-brokered private placement (the “Private Placement”) of convertible securities, for proceeds of $475,000. The securities were 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 loans, at any time after three months from the date of advance. The Issuer agrees to use its best endeavours to raise equity funds to repay the convertible loans in whole or in part. If the Issuer raises insufficient equity funds to repay all of the convertible loans, then the Issuer may repay them on a pro rata basis to each registered holder.
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 closing. The convertible loans will be secured by a general security agreement against the Company’s assets.
Three insiders of the Company participated in this tranche of the private placement and subscribed for a face value of $475,000 in convertible securities. Participation by the three insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company did not file a material change report 21 days prior to the closing of the private placement as the details of the participation of insiders of the Company had not been confirmed at that time.
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 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.

Thursday, 10 August 2017

Elon Musk: "I Could Give You A PowerPoint Presentation About Teleportation" - Lithium Batteries Are Here To Stay.




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. Among many other important topics, Elon Musk is answering all those questions about battery breakthrough "de jour".







The following extracts are from Seeking Alpha transcript:

"Elon Reeve Musk - Tesla, Inc.
Okay. Here's my opinion. The battery breakthrough of the week, battery breakthrough du jour. When somebody has like some great claim that they've got this awesome battery, you know what, send us a sample. Or if you don't trust us, send it to an independent lab, where the parameters can be verified. Otherwise, STF.
Yes. So everything works on PowerPoint. You know, I could give you a PowerPoint presentation about teleportation to the Andromeda Galaxy. That doesn't mean it works. So Tesla is the biggest buyer of lithium ion batteries on earth. You know who people come to first when they've got a lithium ion battery? Us, because we're their biggest customer.
I would love it if we could have some breakthrough. It'd be awesome. I think there are some interesting things on the horizon. But then the time it takes from something working in the lab to working at moderate production levels to working at higher production levels to optimizing the cost is several years. So it's not like it suddenly pops out of nowhere. JB, do you want to add to that?
Jeffrey B. Straubel - Tesla, Inc.
No. I totally agree with the sort of cautious skepticism on all these announcements. And just more specifically on the solid-state batteries, Rod. I mean, we've talked to a number of different groups that are researching this. We actually have tested a number of those different prototypes, very early prototypes, single cells, but we don't yet see anything that changes our strategy, and we don't see anything there that's ...
Elon Reeve Musk - Tesla, Inc.
Although we'd love it if it did. Please. Please. If someone please come up with a battery (37:43) breakthrough, we'd love it.
Jeffrey B. Straubel - Tesla, Inc.
We would be the first ones to want to implement it.
Elon Reeve Musk - Tesla, Inc.
Yes. Totally. I mean, there are some breakthroughs that I think are achievable. They're confidential, so I can't talk about them on this call, but there's one particular avenue that I'm confident could be made to work. That would be fairly – the most significant one breakthrough in a while.
But, again, you got to make it work in the lab. It doesn't yet work in the lab, it's promising in the lab, a year from the lab to small production. Then you go to large production then you get to cost optimization, these are several years, okay? I wish it were shorter. That's the way it goes. Sorry about that. Yes. So was there ..."





Energy rEVolution: All Cars Will Be Electric - Lithium Battery Prices Will Drop Another 75% By 2030.





This is why The Switch is coming and the Tide of Electric Cars will be the tsunami that will bury the DIEsel cancer hazard polluting and other ICE cars with Trillions of dollars in worthless stranded assets left after it. If you thought that my Holy Grail for Electric Cars: the cost of $100 per kW/h of lithium battery was a pure madness, just wait until Bloomberg NEF prediction of $73 per kW/h will come true! We have the Silicon Valley laws of slashing costs at work here and even if lithium batteries cannot live up to Moore's law, 19% of cost reduction every year is making its magic. Cheap lithium batteries change everything. Lithium is the magic metal at the very heart of this Energy rEVolution.

"Mass production of lithium batteries brings the Holy Grail to electric cars - the cost of batteries is fast approaching the magic $100 per kWh. The auto industry and corrupted politicians are still fighting unavoidable: Elon Musk was talking one year ago about the all-in cost for his lithium batteries at $190 per kWh. Now there are reports already that Gigafactory allows for Tesla to go below $150 per kWh. There is a claim in a new promotional video that Tesla will achieve 35% cost reduction for lithium batteries produced at Gigafactory, according to ElecTrek, it can be as low as $124 per kWh!
We are talking here about the magical 20/200 when $20,000 buys you an electric car with a better performance than BMW 2 and range over 200 miles. It means that not only the cost of ownership for EV is lower than a comparable ICE car, but a beautiful electric car is cheaper and better than anything ICE can offer. We are talking here about all cars being electric much faster than you think." Read more.