Even before Tesla Gigafactory is coming online in 2017 we have already "Lithium Market Upheaval in China". My outrages Lithium price of $15 per MT of LCE in 2016 is not so dramatic any more: Joe Lowry has recently reported that LiOH is priced in some deals in China at $20k per MT already. Time is to check where all this lithium goes into before BYD, Foxconn, Boston Power, Samsung and A123 with their Megafactories plus 17 new startups in Lithium Batteries in China are coming online. As you can see, from the data provided by ChiaAutoWeb Electric Cars in China are already growing very fast in numbers of different models and sales. BYD backed by Warren Buffett is holding the first place and I expect China to become the largest electric cars market in the world early this year. It is all happening very fast even before Tesla has moved to build its tesla Model 3 in China. International Lithium is building vertically integrated lithium business with Ganfeng Lithium.
"Elon Musk is looking for the Tesla Motors factory place in China and the production could be started in 3 years time. He is going where the largest auto-market is and China will welcome him with open arms. We have the state-level military plan to build the new strategic industry in China - Electric Cars in action. Why compete with ICE Age dinosaurs if China can leapfrog straight forward into the Next Industrial Energy rEVolution? 75% of Lithium Hydroxide is controlled by China now, it goes into Tesla Motors lithium cells made by Panasonic. Ganfeng Lithium supplies Panasonic with lithium materials as well as Warren Buffett's backed BYD, LG Chem and Samsung among many others. International Lithium is building vertically integrated lithium business with Ganfeng Lithium. Watch the video"
Copyright Global Lithium LLC, used with permission.
Joe Lowry makes very interesting observations about the dynamic in our Lithium Universe. China is the largest Lithium Market in the world now. Security of Lithium Supply becomes the most important element of your business plan, when market is growing exponentially. It is all happening even before Tesla Gigafactory is coming online with other Lithium Megafactories to follow. My prediction about $15k MT LCE prices in China now suddenly does not look totally outrages any more!
"Asia is taking the very important lead in this space as well. China is not only leapfrogging directly into the Lithium Energy Space with Electric Cars and Solar, but building the advanced materials base for this new Energy rEVolution. Panasonic, Nissan, Toyota, NEC, Sony, Samsung, Huyndai, LG Chem and others are staking its own place in electric cars now. China is the largest Lithium Market in the world already, moving to claim the largest Lithium Battery Producer title and Electric Cars in China will become the largest World's EV market early in the next year.
Listen to that podcast, read the article about LG Chem and do your own research. Numerous companies are building Lithium Batteries facilities now in China: LG Chem, BYD, Boston Power (Ganfeng Lithium has 10% stake), Foxconn, Samsung, A123 - which will exceed even Tesla Gigafactory production capacity! 17 start ups only this year are trying to capitalise in lithium batteries market on the "War on Pollution" announced by China and state-level plan to build new strategic industry - Electric Cars. Read more."
Now we can discuss the real situation in the lithium market and how the full blown shortage situation of Lithium looks like. China is rising and has become the centre of "Lithium Universe". International Lithium strategic partner Ganfeng Lithium put up its prices for a second time in the space of month last week to $11,049/tonne! With rising Lithium prices Ganfeng Lithium market cap is rising as well, now this giant from China has reached 2.3 Billion market cap. Industrial Minerals calls Ganfeng leading Chinese carbonate supplier and you can see the chart below reflecting the market situation in China. It will come as a shock for many:
"Chinese lithium producer Jiangxi Ganfeng Lithium Co. Ltd increased the price of its lithium carbonate last week, marking the second rise in a single month.
The company raised the sale value of its material by nearly 17%, from Chinese renminbi (Rmb) 60,000/tonne ($9,470/tonne*) to Rmb 70,000/tonne ($11,049/tonne) - Industrial Minerals"
Ganfeng has announced in China on its website establishing of $170 million credit line to finance expansion of its production facilities, financing of acquired last year mobile lithium battery maker and investing in the development of raw material base. The security of supply is everything. International Lithium is building vertically integrated lithium business with Ganfeng.
"With GM Bolt and Faraday Future unveiling at CES 2016, Lithium Technology is in the headlines these days and getting finally on the investor's radar screens. Today I would like to present International Lithium's Mavis Lake Lithium and Tantalum project in Canada. Our J/V projects with Ganfeng Lithium: Avalonia in Ireland and Mariana in Argentina are better known: we are advancing another $4 million exploration programs on these projects now. Mavis Lake presents another very important opportunity for development of potential source of conflict free strategic commodities in politically stable Canada. We are talking here about the security of Lithium Supply for the West now. With our J/Vs with Ganfeng Lithium solidly on track for the development, we are concentrating now on the Strategic Partnership to build the Next Lithium Producer in North America. Read more."
"Mr. Kirill Klip, President, International Lithium Corp. comments, "We have always viewed Argentina as a favorable location for mineral exploration and development and have been able to operate in a mutually beneficial manner with the local people and governments. The results of the recent elections have managed to give foreign corporations greater confidence in the future of business and mineral resource development in Argentina. We welcome the change and look forward to working with the newly elected officials and advancing our Mariana lithium brine project in cooperation with our strategic partner, Ganfeng Lithium. Security of lithium supply is becoming more important as witnessed by recent price increases in China, all in advance of the completion of new battery production facilities announced by Tesla and other manufacturers. We continue to build a vertically integrated lithium business with Ganfeng Lithium to meet the future demand of lithium products that will address the increasing demands for lithium raw materials and chemical products." Read more."
"Mr. Kirill Klip, President, International Lithium Corp. comments, "The Avalonia project joint venture, fully funded by strategic partner Ganfeng Lithium Co. Ltd., ("GFL"), could be of strategic importance to the European Union should a sufficient resource be identified. Clean fuel technologies for motor vehicles are becoming increasingly important to the European Economic Community to tackle climate change and the air pollution crisis in major urban areas. Lithium technology will play a major role when it comes to providing batteries for communication devices, electric vehicles and utility storage systems. Renewable sources of energy such as solar and wind power will also benefit from lithium battery technologies and become more commonplace as the problem of intermittency will be addressed providing steady power from these sources 24/7." Read more."
Listed below are highway-capable plug-in EVs built in China by either native car-makers or foreign-sino joint ventures. The database here covers mainly passenger cars; electric buses and trucks in general are not included. The first table documents pure-electric models, and the second plug-in hybrids (PHEVs). We will update the database regularly following the development of the China's EV industry. Please click on individual models for photos and specs.
All-electric passenger cars
|Maker||Model||Battery Type||Driving Range (km)||Top Speed (km/h)||List Price (Yuan)||Release date|
|BAIC (Beijing Auto)||ES 210||Lithium Ion||175||130||346,900||Dec. 2014|
|EU260||Ternary Lithium||260||140||254,900||Nov. 2015|
|E150 EV||Lithium Ion||140||125||249,800||Mid 2013|
|C30 EV||Lithium Ion||200||160|
|Beiqi Foton||Midi EV||Lithium Manganese||170||140||100,000 after subsidies|
|BMW Brilliance||Zinoro 1E||Lithium iron phosphate||150||130||400,000||March 2014|
|e6||LiFePO4||400||140||309,800||Limited release in 2010|
|K9||LiFePO4||250-300||62.1mph||est. 2,000,000||Oct. 2010|
|BYD-Daimler||DENZA EV||LiFePO4||253||150||369,000/ 399,000||April 2014|
|Changan||Benni EV||Lithium Ion||150||120||Less than 100,000 after rebates|
|E30||Lithium Ion||160||125||About 100,000 after rebates||100 Changan E30 EVs started to serve as taxis in Beijing in Feb. 2012.|
|Eado EV||Lithium Ion||160||140||About 200,000||H1 2015|
|Chery||eQ EV||Lithium Ion||200||100||159,000- 164,900||Nov 2014|
|Riich M1||LiFePO4||120- 150||120||149,800- 229,800||Nov. 2010|
|Dongfeng||E30L||Lithium Ion||160||80||Late 2014|
|Dongfeng Nissan||Venucia E30||Lithium Ion||160||A fleet started to serve as taxis in Dalian in September 2013.|
|FAW||Besturn B50 EV||Lithium Ion||140||147|
|FAW Toyota||Ranz EV||Lithium Ion||120|
|Geely||Emgrand EV||Ternary Lithium||253||140||251,800- 265,800||Nov 2016|
|Great Wall||Haval M3 EV||LiFePO4||160||130|
|GreenWheel EV||Jimma (Jummer)||Lithium Ion||160||110|
|Hafei||Saibao EV||Lithium Ion||180- 200||130||180,000|
|Haima||Freema EV||LiFePO4||160||90||160,000||Public trial in 2011|
|Kandi EV||K11 (Panda EV)||LiFePO4||80||80||2014|
|Lifan||320 EV||LiFePO4||100- 150||120|
|SAIC (Shanghai Auto)||Maxus EV80||LiFePO4||170||179,000- 499,000||Nov. 20, 2014|
|Roewe E50||LiFePO4||180||130||234,900||Nov. 5, 2012|
|Shanghai GM||Springo EV (Chevy Sail EV)||LiFePO4||130- 200||130||258,000||Nov. 2012|
|Zotye||Zotye Zhidou (ZD)||Lithium ion||120||80||108,800||2014|
|Cloud 100 EV||Li(NiCoMn)O2||150||85||150,000|
|5008 (Nomad II) EV||LiFePO4||200||100||210,000||early 2010|
Plug-in Hybrid Cars
|Maker||Model||Battery Capacity||List Price (Yuan)||Release date|
|BMW Brilliance||BMW 530Le||40AH||698,900||Jan. 15, 2015|
|BYD||Qin||13KWH||189,800- 209,800||Dec. 17, 2013|
|Shang||est. 139,800- 169,800||H2 2015|
|Song||est. 250,000||H2 2015|
|Tang||18.4KWH||est. 300,000||H2 2015|
|Yuan||est. 200,000||H2 2015|
|Chery||Arrizo 7 PHEV||9.2KWH||Late 2015|
|FAW Volkswagen||Audi A6L e-tron||14.1KWH||2016|
|GAC (Guangzhou Auto)||Trumpchi GA5 REV||13KWH||199,300- 219,300||Oct. 2014|
|SAIC (Shanghai Auto)||Roewe e550 (550 PHEV)||11.8KWH||248,800- 259,800||Nov. 2013|
|Volvo||S60L PHEV||11.2KWH||505,900- 559,900||April 22, 2015|
Disclosure: I am/we are long TRRXF, ILHMF.