Fri, Jul. 22, 10:39 AM
- The focus on Tesla Motors (NASDAQ:TSLA) turns to the Gigafactory unveiling next week with a grand opening scheduled for July 29. The event will include a tour of the massive facility and presumably more details on EV battery production plans.
- The Gigafactory buzz could also increase the focus on lithium supply and demand questions. Goldman Sachs and Deutsche Bank both expect lithium carbonate demand to almost double by 2025, although picking out potential winners and losers is no easy process.
- Bacanora Minerals (OTC:BCRMF) already has a long-term contract with Tesla, while other companies such as Albermarle (NYSE:ALB), FMC (NYSE:FMC), Nemaska Lithium (OTCQX:NMKEF), SQM (NYSE:SQM), Oroplata Resources (OTCPK:ORRP), Orocobre (OTCPK:OROCF), Critical Elements (OTCQX:CRECF), Lithium X Energy (OTCQB:LIXXF), and American Lithium Minerals (OTCPK:AMLM) have been bandied around on Seeking Alpha as potential lithium plays. Those names and more are on watch next week for volatility.
- There's also the Global X Lithium ETF (NYSEARCA:LIT) to watch as a catch-all.
Nov. 2, 2015, 5:19 PM
- The Global X Copper Miners ETF (NYSEARCA:COPX) and Global X Silver Miners ETF (NYSEARCA:SIL) will reverse split 1:3 at the open on Nov. 18. One-for-two splits are in store the same day for the Global X Gold Explorers ETF (NYSEARCA:GLDX), Global X Lithium ETF (NYSEARCA:LIT), and Global X Uranium ETF (NYSEARCA:URA).
- Not surprisingly, it's been a tough run for the group - down between 47% and 85% over the past five years. The GLDX is the only one of the five in the green on a Y/Y basis, with a 4.8% advance.
Mar. 14, 2015, 10:41 AM
- BYD Company sold a subsidiary to Holitech this week for 2.3B yuan ($368M).
- The Chinese company said in its filing with the Hong Kong exchange that it intends to allocate more resources to develop its new-energy vehicle business to expand on existing levels of electric car and bus production.
- A new 3B yuan ($479M) bond offering from BYD is also in the works.
- BYD is emerging as the main competitor to Tesla Motors (NASDAQ:TSLA) in the electricity storage industry with plans to triple battery production.
- Execs with BYD maintain the company could produce ~34 GWh of battery capacity by 2020 if demand trends are strong - a pace that rivals projections for Tesla's Gigafactory production.
- Berkshire Hathaway (BRK.A, BRK.B) owns a sizable stake in BYD Company (OTCPK:BYDDY, OTCPK:BYDDF).
- BYD's aggressive positioning could have some impact on companies tied to the lithium industry.
- Potential lithium plays: OTCPK:PCRFY, ARTX, SQM, ENS, OTCQX:WLCDF, FMC, LIT (add your own in the comment stream).
- Previously: Dark cloud over China auto market (March 4)
Mar. 11, 2015, 3:05 AM
- Boeing (NYSE:BA) has announced that high-density packages of lithium batteries like those used in cell phones and laptops pose fire risks and should not be carried on passenger planes until safer methods for carrying them are developed.
- The risk is "continually increasing (and) requires action to be taken," said the aircraft maker.
- A report that labels the batteries as "dangerous goods" is due to be considered in April by the U.N. International Civil Aviation Organization. The recommendations would then need to be approved by the group in October, and by a broader air safety council next year.
- Lithium stocks: ARTX, CBAK, ENS, FMC, GB, JCI, OTCPK:LHMAF, OTCQX:NMKEF, OTCPK:OROCF, OTCPK:PCRFY, PPO, ROC, SQM, OTCQX:WLCDF
- ETFs: LIT
May 15, 2014, 8:11 AM
- Tesla Motors (TSLA) CEO Elon Musk sees exploding demand for low-cost lithium-ion batteries.
- The exec forecasts the automobile industry alone will need 200 gigafactories to supply it. Ground breaks on Tesla' first gigafactory in June.
- The Musk thesis is based on cars powered by electric batteries winning out over hydrogen cars, hybrids, and gas-powered vehicles. Toyota (TM) is expected to have a lot to say on that issue.
- Lithium plays: PCRFY, ARTX, SQM, ENS, WLCDF, FMC, LIT
Mar. 14, 2014, 2:45 PM
- CNN is reporting that lithium batteries stored in the cargo hold are being investigated as a potential cause for the disappearance of Malaysian Air MH370.
- The Global X Lithium ETF (LIT) is at a session low following the development, down 0.5%.
- There is also a chance of some volatility with Tesla Motors (TSLA -3.2%) as algorithmic trading picks up on the headline. TSLA was already lower on the day before the lithium link was reported on.
Mar. 1, 2014, 12:54 PM
- 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
May 5, 2011, 1:16 PM
Some ETF plays - petroleum-related in the near-term (UGA, XOIL), and alternative-energy in the longer term (FCG, LIT) - might help soften the portfolio blow of still-increasing gasoline prices. That is, assuming you think the dollar will keep declining.| May 5, 2011, 1:16 PM
Jul. 23, 2010, 11:19 AM
Today is the first day of trading for the Global X Lithium ETF (LIT). Global X hopes to take advantage of rapidly growing demand for lithium batteries in hybrid and electric cars. According to the press release (pdf), 51% of the fund will be made up of battery manufacturers, with the remaining 49% made up of lithium miners and refiners. LIT will charge 0.75%; it has 20 components.| Jul. 23, 2010, 11:19 AM | 1 Comment