International Energy Agency has presented "Global EV Outlook 2017". Numerous statistics are painting the picture of exponential growth in sales of electric cars. The number of electric cars on the roads rose to 2 million in 2016. It took us all human history to get to 1 million of electric cars in 2015 and just over 1 year to double this amount and exceed 2 million EVs by now.
In 2016 40% of all electric cars were sold in China. China sells more electric cars than the US and Europe. And China is also the global leader in the electrification of other forms of transport. There are more than 70 models of electric cars on sale in China now. There are 2 million electric bikes, 4 million small low-speed EVs and 350,000 electric buses in China as well. BYD backed by Warren Buffet is not only the largest electric buses maker but has become the largest electric vehicles manufacturer in the world. And now Tesla is coming to China as well ...
In Norway nearly a third of all electric cars sold in 2016 were electric. We are at the tipping point for the mass market in electric cars. 95% of EV sales were concentrated in just 10 countries. Electric Cars still represent only 0.2% of all cars in the world. Worldwide sales of electric cars have reached 1.1% of total auto sales in 2016. In order to limit temperature increase below 2º C the number of electric cars needs to reach 600 million by 2040.
The cost of lithium batteries is going down very fast and I believe that fully electric cars will rule the world very soon. Tesla Model 3 with 65 kWh lithium battery provides over 200 miles of range and will become the standard in the industry with its mass volume production from this July. There is around 60 kg of LCE (Lithium Carbonate Equivalent) in one Tesla Model 3 battery. We will need 36 Million Tonnes of LCE to be produced by 2040 to put this IEA plan into life.
To put it into perspective, the total lithium production last year was around 200,000 T of LCE. Now you can better understand why there is the real cut throat competition for the security of lithium supply which is still hidden from the most of the people by the clouds of toxic cancer hazard fumes emitted by all DIEsel cars on our roads. ICE (Internal Combustion Engines) are on the way out, all cars will be electric very soon and we are facing the total disconnect between the coming demand for lithium and the available supply.
Lithium supply chains will be tested this year by Tesla Gigafactory starting lithium batteries mass production for Model 3 and by a few lithium batteries Megafactories which are coming online in China. Lithium giants from China like Ganfeng Lithium are building vertically integrated businesses to supply critical material to this Energy rEVolution. Ganfeng Lithium has finally closed its deal with Lithium Americas and now Argentina will be becoming the real Powerhouse of Energy rEVolution. Lithium is the magic metal at the very heart of this Energy rEVolution and International Lithium is Lithium Strategic Investments and Royalty Company which is plugged-in the most dynamic EV and Energy Storage markets in China with partners like a giant from China Ganfeng Lithium.
International Lithium And Ganfeng Mariana Lithium JV Exploration Target And Indicated Resource Of 1.25 M T of LCE.
"Kirill Klip, Executive Chairman of ILC stated, "We are very pleased with the results of the maiden resource estimation at the Mariana lithium potash brine project, together with our strategic partner Ganfeng Lithium. This project is now moving from an early exploration stage to an advanced exploration stage where it will be more easily compared to other lithium brine projects in Argentina. We are looking forward to follow up with Ganfeng Lithium on the recommendations of this report in order to ensure the rapid advancement of the project towards the pilot stage and to conduct further feasibility studies that will investigate the economic viability of the Mariana project."
Disclosure: I am/we are long ILHMF.