Tesla, SolarCity, And The Birth Of The Lithium-Based Economy

May 07, 2014 1:57 PM ETTSLA, KNDI, LIT, NTR, ROC-OLD, SQM, SSNLF, NTR:CA85 Comments


  • Tesla, SolarCity and others could kick off a massive increase in the demand for lithium as major automakers and competitors seek to secure their own battery supplies.
  • How Lithium has the potential to eventually displace foreign oil in favor of domestically produced electricity as our transportation fuel in the long term.
  • Musk believes 50% of all vehicle production will be fully electric by 2030. If so lithium demand will increase from 165,000t/yr in 2013 to a minimum of 3,000,000t/yr in 2030.
  • Stocks to watch: Sociedad Quimica y Minera de Chile, Rockwood Holdings, BYD, Kandi Technologies, RB Energy, Tesla, SolarCity, Samsung Electronics.

If you are one of the many who are kicking themselves for not getting in on Tesla (TSLA) or SolarCity (OTC:SCTY) a year ago there may still be some very interesting investment opportunities, which will benefit from their success.

While I won't provide any in depth stock analysis here, I do aim to paint a picture as to what the future may have in store in terms of future demand and how the following companies may benefit. I leave the detailed analysis to those who wish to dig deeper into each individual company.


If Tesla has hailed the dawn of the EV era, then the announcement of its battery "giga factory" just may have hailed the slow birth of the Lithium based economy.

Tesla's giga factory will produce more lithium ion cells under one roof than the ENTIRE WORLD produced in 2013.

To quote Elon Musk..."We need a lotta battery."

This massive factory will produce enough battery cells for 500,000 long range electric vehicles (LREV) by 2020, but the giga factory will begin producing cells for around 200,000 LREV's in 2017.

There is simply no way that Tesla would be investing in the giga factory if it did not think it was possible to create their long range GEN III mass market vehicle for an affordable price in 2017 (estimated $35,000 USD).

You will notice that I make a real point of emphasizing "long range" electric vehicle. This is simply because Tesla is the only car company currently mass producing a long range EV. This is important and I will thus subdivide the EV market as follows:

1. LREV - Long Range Electric Vehicle - is a vehicle with 150+ miles of all electric range from a full charge. (Tesla Model S is the only mass production vehicle in this category with over 200 miles of

This article was written by

Interested in all renewable energy solutions and electric vehicles. Have driven an EV for over a decade and know for a fact that this is the only sustainable future for transporation that we are likely to see proliferate in the near future.

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