- The new Gigafactory from Tesla Motors (TSLA) could consume as much as 17% of the current global lithium output in a development that could ease concerns on oversupply, forecasts Goldman Sachs.
- The EV automaker is expected to build the large facility in either Nevada, Arizona, Texas, or New Mexico - regions which are all close to major lithium factories.
- Panasonic (PCRFY) will play a major role in the roll-out of the Gigafactory. Shares of the ADRs were up over 10% this week as enthusiasm built up over some of the potential down the road for the company in battery production.
- Goldman notes that lithium producers such as Rockwood Holdings (ROC) could be well-positioned if Tesla's Gigafactory helps support market demand for lithium.
- A rising tide lifts all lithium boats: If lithium demand improves, other companies to watch in the lithium-ion battery industry include Arotech (ARTX), Polypore Internationak (PPO), Western Lithium (WLCDF), FMC Corporation (FMC), EnerSys (ENS), and Sociedad Quimica y Minera de Chile (SQM).
- Related ETFs: LIT
at CNBC.com (Nov 19, 2014)