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).
Western Lithium USA Corporation is a Canadian-based resource company focused on the development of its Kings Valley lithium and hectorite clay deposit which is located in northwestern Nevada. The Company plans to sell specialty organoclay drilling mud products ("Hectatone" products) to the oil...More