Posted by AGORACOM-JC
at 2:35 PM on Tuesday, December 10th, 2019
SPONSOR: New Age Metals Inc.
The company owns one of North America’s largest primary platinum
group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral
Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an
additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
Palladium roars to record $1,900/oz. on South Africa power cuts
“South Africa produces 40% of world’s palladium and the ESKOM outages are hitting some mines, giving palladium just that extra nudge above $1,900,” says Tai Wong, head of base and precious metals derivatives trading at BMO
Spot palladium recently was +1% at $1,901.27/oz., after hitting an all-time high $1,903/oz.
“South Africa produces 40% of world’s palladium and the ESKOM outages
are hitting some mines, giving palladium just that extra nudge above
$1,900,” says Tai Wong, head of base and precious metals derivatives
trading at BMO, but after 13 straight positive sessions, “it wouldn’t be
surprising to see some consolidation, though the overall trend
continues to look positive.”
Scarcity concerns over palladium already have helped lift the metal by ~50% in 2019, due to its large demand in the auto sector.
Other metals also gained on the South African outages, with platinum +3.1% at $922.40/oz., the highest since Nov. 21, and silver +0.4% to $16.66/oz.; spot gold only +0.1% at $1,463.66/oz.
Posted by AGORACOM-JC
at 2:39 PM on Monday, December 9th, 2019
SPONSOR: New Age Metals Inc.
The company owns one of North America’s largest primary platinum
group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral
Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an
additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
Palladium eyes $1,900 in record surge, gold firms on trade doubts
Palladium soared to a record just shy of the $1,900 mark on Monday
Gold edged higher as uncertainty over U.S.-China trade talks took center stage ahead of a Dec. 15 deadline for fresh U.S. tariffs.
Autocatalyst metal palladium climbed to an all-time high of $1,898.50 an ounce and was last up 0.19% at $1,881.43.
“Palladium has a very strong fundamental backdrop with supply set to
stay quite scarce and demand growth set to increase,†said Daniel Ghali,
commodity strategist at TD Securities.
Palladium has risen nearly 50% in 2019 on a sustained supply squeeze,
and has constantly been breaking records, despite a weakening global
auto sector. Increasingly stringent emissions regulations globally are
raising the palladium in autocatalysts for gasoline-powered cars and
2020 could see the most number of regulations, Ghali added.
“There is a widespread expectation that (palladium) spot prices are
headed towards $2,000 and the market does currently appear to be in a
one-way street,†INTL FCStone analyst Rhona O’Connell said in a note.
“Even with the (auto) sector under pressure, palladium will be in
deficit for the foreseeable future and the funds are chasing it higher.â€
“The tariff deadline of Dec. 15 is certainly top of everyone’s mind
… The situation is still uncertain, helping gold stay firm,†TD
Securities’ Ghali said. China said on Monday it hoped to make a trade
deal with the United States as soon as possible, as Washington’s next
round of tariffs against Chinese goods is scheduled to take effect on
Dec. 15. Also supporting bullion, equity markets were further pressured
after China’s exports shrank in November.
Markets now await the U.S. Federal Reserve’s two-day meeting starting
on Tuesday for cues on its monetary policy. The central bank is
expected to highlight the economy’s resilience and keep interest rates
on hold in the range of 1.50% to 1.75%.
U.S. investment bank Goldman Sachs said investment demand for gold
would be supported by recession fears and political uncertainty,
forecasting prices at $1,600 an ounce over a three- and 12-month period.
Platinum and silver were up 0.2% at $897.36 and $16.60 an ounce, respectively.
Posted by AGORACOM-JC
at 12:42 PM on Thursday, December 5th, 2019
SPONSOR: New Age Metals Inc.
The company owns one of North America’s largest primary platinum
group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral
Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an
additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
Palladium zooms past $1,860/oz
Palladium was up 0.3% at $1,845.80 an ounce, after hitting a new high of $1,861.71 earlier in the session.
The metal has been breaking records daily since Nov. 25.
“Palladium positioning is slightly counter-intuitive to the price
action, implicitly confirming heavy OTC interest from the long side,â€
INTL FCStone analyst Rhona O’Connell said in a note. “After weak longs
were shaken out in early November another push to the upside is now
approaching resistance from the uptrend.â€
Concerns that supply of the metal used in car exhaust systems could
run out has helped to lift prices by more than 47% this year alone,
despite a weakening auto sector.
Silver shed 0.4% to $16.95 an ounce and platinum gained 0.4% to $903.51.
Posted by AGORACOM-JC
at 5:06 PM on Wednesday, November 27th, 2019
SPONSOR: Iconic Minerals Ltd. ICM:TSX-V Bonnie Claire Lithium Property hosts Inferred resource of 11.8 billion pounds of lithium carbonate equivalent and has the potential to be the largest lithium resource globally. Learn More.
Better battery tech could boost EV range, speed up charging
At least if battery manufacturers can keep up with demand as electric power expands.
Battery demand is surging as conventional automakers catch EV religion
Along with US automakers, German giant Volkswagen now has a massive EV push
Ford’s first electric SUV, the Mustang Mach-E, arrives next year, and it shows just how far we’ve come with EVs. Mainstream carmakers like Nissan, General Motors, BMW, Hyundai, Jaguar and Porsche are filling a field that once belonged to counterculture icon Tesla. And better batteries should keep the new models coming.
At the IDTechEx conference
this week, startups showed off new battery technology that improves on
today’s lithium-ion designs. The developments increase driving range,
cut costs, extend useful lifespan, speed up charging and reduce fire
risks. That’ll continue the kind of steady progress that’s more common
in the computer industry than the car industry.
For now, the improvements are mostly in labs, and many of them won’t
arrive until well into the next decade. But they’re an important
foundation for the dreams of EV proponents, who want to see conventional
cars that belch greenhouse gases replaced by cleaner, quieter
electrics. Once passenger cars are plug-in, expect to see electric trucks, tractors, excavators, buses and even airplanes.
Burgeoning battery startups
The most important battery improvement is in energy density, the
amount of kilowatt-hours of juice that can be stored in a given mass.
That can extend range, cut battery costs and reduce vehicle weight,
which in turn improves range. Startups are racing to achieve that and
other improvements through changes to anodes, cathodes and other
components.
Enevate, an Irvine,
California-based startup whose investors include battery giant LG Chem,
expects more storage capacity and dramatically faster charging. The
company sees charging times dropping to just five minutes for a
three-quarter charge. Conventional gas stations could be converted into
“drive-through charging stations,” Executive Vice President Jarvis Tou
said.
Another, Solid Battery,
plans solid-state cells that do away with liquid elements and increase
energy density by 50%, according to Chief Executive Douglas Campbell.
His company’s approach has “the best blend of performance and
manufacturability” and boosts safety, and BMW and Ford have development
agreements with the company, he said.
Global Graphene Group
also plans to improve batteries by encasing silicon in the anode with
graphene, an exotic form of carbon sheets only one atom thick. The
result, according to CEO Bor Jang, a longtime graphene researcher, will
be batteries costing 30% less and powering EVs with a 700-mile range.
Jang expects those batteries can be fully charged in five to 15 minutes.
“The demand is going to be enormous,” IDTechEx analyst Peter Harrop said of vehicle batteries. “We keep revising our forecasts upwards.”
Battery demand is surging as conventional automakers catch EV
religion. Along with US automakers, German giant Volkswagen now has a
massive EV push. And Japan’s Toyota, taken by surprise when EV demand
grew faster than it expected, is pushing battery-powered car development and working on battery supply deals.
Electric vehicle sales should increase
from 2 million in 2018 to 10 million in 2025, BloombergNEF forecasts.
No wonder Tesla, which just announced its Cybertruck pickup on Thursday,
is working on building its own batteries.
Analyst firm IDTechEx expects electric vehicles used for
construction, agriculture and mining to outsell electric passenger cars.
IDTechEx; photo by Stephen Shankland/CNET
Rising costs could slow the spread of electric power to all sorts of
other industries, too, like construction, agriculture, mining, mass
transit and aircraft.
Battery progress will help all these new industries become greener
and quieter only if all that extra energy can be squeezed more tightly
into cells without increasing risks of fires and explosions. Lithium-ion
battery fires grounded Boeing’s early 787 Dreamliner aircraft, and there have been problems in large batteries for grid-scale energy storage because of insufficient testing, Harrop said.
“The industry is cutting corners in the race to get energy density,
faster charging and longer cycle life,” Harrop said. “The fires will
continue.”
Electric aircraft, too
Still, many companies, like French aerospace giant Airbus and US rival Boeing, believe batteries are coming.
Startup Ampaire is banking on a
hybrid aircraft that marries conventional fuel-powered engines with
battery-powered motors for propeller-powered aircraft common on
short-haul routes. They’ll be much quieter at takeoff and will cut fuel
use, a major constraint for short flights that are canceled when fuel
costs increase, said Pete Savagian, the company’s senior vice president
of engineering.
A larger scale hybrid due in 2021, the Airbus E-Fan X
prototype jet will swap out one of its four conventional jet engines
with a 2-megawatt electric motor, said Bruno Samaniego López, a power
and electrical engineering leader at the company. A new single-aisle jet
with 20MW of electrical power is planned after that, he adds.
“We are very committed to this ambitious path of electrification,”
Samaniego López said. “It is happening, and it will be the future.”
Posted by AGORACOM-JC
at 2:55 PM on Tuesday, November 26th, 2019
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
Investor demand to create deficit in platinum market in 2019 – WPIC
In its Platinum Quarterly report for the third quarter, the WPIC
updated its supply and demand forecast for the year and released its
initial estimates for 2020
Because of strong demand for exchange-traded products the platinum’s
expected surplus of 345,000 ounces is projected to fall into a 30,000
ounce deficit
(Kitco News) –
Unprecedented investment demand has helped to transform the platinum
market, shifting what was expected to be a surplus market into a small
deficit, according to the latest data from the World Platinum Investment
Council (WPIC).
In its Platinum Quarterly report for the third quarter, the WPIC
updated its supply and demand forecast for the year and released its
initial estimates for 2020. Because of strong demand for exchange-traded
products the platinum’s expected surplus of 345,000 ounces is projected
to fall into a 30,000 ounce deficit.
“The substantial 12% increase in total demand is driven by record ETF
buying, which more than offsets expected demand decreases in the
automotive (-5%), jewelry (-6%) and industrial (-1%) segments and total
supply growth of 2% for full-year 2019,†the WPIC said in a press
release.
According to the report, funds investment demand has driven
platinum-backed ETF holding to one million ounces so far this year; “the
highest seen since physically backed platinum ETFs were launched in
2007,†the report said.
“This ETF buying by large institutional investors, who typically take
2 to 3 year views and positions, reflect the value opportunity they
see; driven by future demand growth potential and constrained supply,”
the WPIC said.
Looking ahead, the council said that they are forecasting a surplus
of 670,000 ounces next year, reflecting a 1% increase in supply and a
10% decrease in demand.
However, Trevor Raymond, director of research with the council, said
that the estimates are fairly conservative and it wouldn’t take much to
push the market back into neutral territory. Raymond added that he
expects investor demand to remain strong.
“You only need two or three funds to increase their platinum holding
to see a repeat of this year,†he said. “The fact that investment demand
has turned the market around so quickly should not be ignored.â€
Along with investment demand, Raymond said that their estimates also
don’t include substitute projections and rising diesel vehicle demand.
With palladium expected to see its ninth consecutive year of supply
deficits, Raymond said that substitution remains an important topic
within the PGM market. He added that he suspects that auto companies are
already using cheaper platinum instead of palladium.
“I think we will start to see signs of substitution within the next 12 to 18 months,†he said.
Raymond added that a bottoming in the European diesel auto market would also be a positive sign for platinum.
“Every 4% increase in market share in the European auto market equals
roughly 100,000 ounces of platinum,†he said. “Auto companies
substituting 4% of the palladium for platinum would equal about 400,000
ounces. If a few factors come together next year the market can easily
become balanced again.â€
As for platinum jewelry demand, which has declined 6% so far this
year, Raymond said that stable higher prices could ignite renewed
interest, especially in China and India, as those markets continue to
deal with near-record high gold prices.
Posted by AGORACOM-JC
at 2:00 PM on Monday, November 25th, 2019
SPONSOR: Iconic Minerals Ltd.
ICM:TSX-V Bonnie Claire Lithium Property hosts Inferred resource of
11.8 billion pounds of lithium carbonate equivalent and has the
potential to be the largest lithium resource globally. Learn More.
Lithium Ion Battery Market Growth Factors, Demand and Trends Forecast
In recent years, the growth in the industrial automation has been highly eye-catching
This has been particularly beneficial for the development of the global lithium ion battery market for the application of material handling equipment
Global lithium ion battery market is driven by the growing penetration of smartphones, tablets, PCs, power tools, and digital cameras
Also witnessing an increase from the flourishing automobile industry
Lithium ion batteries are a type of rechargeable batteries that have
high energy density. These batteries have a very wide range of
application. However, primarily these lithium ion batteries are used in
portable devices and equipment. The global lithium ion battery market is
expected to witness a considerable growth over the course of the given
forecast period with a considerable rise in the use of tablets, PC,
smartphones, digital camera, and other power tools. These batteries have
gained immense popularity in recent years, especially in the automobile
production sector as they provide a solid alternative to the nickel
metal batteries that are primarily used in manufacturing of electric
cars. Another reason for their growing use is because of their light
weight and small size that make them an ideal fit for a wide range of
applications.
In recent years, the growth in the industrial automation has been
highly eye-catching. This has been particularly beneficial for the
development of the global lithium ion battery market for the application
of material handling equipment. Over the years, several technological
advancements have brought considerable growth in the material handling
equipment sector. Some of the highly popular material handling equipment
are automated guided vehicles, intralogistics systems, industrial
trucks, and elevating equipment. Interestingly, all of these machine
handling equipment are battery operated. With lithium ion’s stronger
energy density, long lasting power, compact size, and light weight,
these batteries are the most preferred option to be fitted across the
equipment. Naturally, this has helped in the development of the global
lithium ion battery market.
Lithium-ion batteries are rechargeable batteries that have high
energy density and are used extensively in portable equipment. The
global lithium ion battery market is driven by the growing penetration
of smartphones, tablets, PCs, power tools, and digital cameras. The
demand for Li-ion batteries is also witnessing an increase from the
flourishing automobile industry. The demand for electric vehicles is
increasing and with it, the demand for lithium ion batteries. The
popularity of these batteries is increasing among automobile
manufacturers as they are small in size and light in weight as compared
to nickel metal batteries.
The lithium ion battery market is greatly fragmented with a large
number of domestic players. These domestic players are accounting for a
high share in the lithium ion battery market. There are small, medium,
and large scale players in the industry and this is the reason behind
the extreme competitive environment within the global lithium-ion
battery market. The introduction of innovative and new technologies will
help with the growth of the market. Many players are also investing in
research and development and this will trigger increased competition
among existing players. Product launches are a key strategy adopted by
players in the industry. The lithium ion battery market players are also
adopting the strategy of mergers and acquisitions so as to gain
competitive edge and increase their customer base.
Global Lithium Ion Battery Market: Overview
Lithium-ion batteries are rechargeable batteries, in which lithium
ions move from positive electrode to negative electrode during charging
and back when discharging. These batteries are commonly used in consumer
electronics. They make use of an intercalated lithium compound as an
electrode material, compared to the metallic lithium used in
a non-rechargeable lithium battery. Besides that, their popularity is
growing rapidly across sectors such as military, automotive, aerospace,
and industrial.
Global Lithium Ion Battery Market: Key Trends
The various advantages offered by lithium ion batteries such as
lightweight, rechargeable, environment-friendliness, high energy
density, and no memory effect are boosting their adoption in
smartphones, tablets, and automobiles. Hence, the proliferation of
smartphones and tablets is providing a fillip to the global lithium ion
battery market. Moreover, the escalating need for efficient and green
solutions for power supply and energy storage is augmenting the market.
Traditional batteries such as nickel-metal-hybrid, lead-acid, and
sodium-sulfur have hazardous effects on the environment. In addition,
the rising production of hybrid electric vehicles and electrical
vehicles is creating a staggering volume of demand for these batteries
in the automotive sector.
On the flip side, the higher cost of lithium ion batteries as
compared to traditional batteries is limiting their widespread adoption.
Furthermore, the risk of overheating and a subsequent fire associated
with these batteries can pose a major threat to cars and other
electronic devices, which in turn is restricting the lithium ion battery
market from realizing its utmost potential.
Global Lithium Ion Battery Market: Market Potential
Several players in the global lithium-ion battery market are aiming
at expanding their lithium ion battery facilities to enhance their
visibility in the market. A case in point is Utility San Diego Gas and
Electric (SDG&E) and AES Energy Storage, a subsidiary of Automotive
Energy Supply Corporation, which in February 2017, inaugurated their new
energy storage facility in Escondido, California, which they claim to
be the world’s largest lithium-ion battery energy storage site. The
capacity of this system is 30MW/120MWh and has the ability to store
energy for the equivalent of 20,000 customers for four hours. Such steps
taken by players are likely to scale up energy storage capacity and
drive the market over the coming years.
Global Lithium Ion Battery Market: Regional Outlook
The segments covered in the lithium ion battery market report on the
basis of geography are Asia Pacific, Latin America, North America,
Europe, and the Middle East and Africa. Asia Pacific is expected to
represent a sizeable share in the market throughout the review period.
The domicile of a large number of key manufacturers is providing an edge
to the region over other regions. Countries such as India, China,
Singapore, Australia, and Japan will be sights of high growth in APAC.
The growth of the lithium ion battery market in these countries can be
attributed to the increasing regulations to reduce the carbon footprint
and lead pollution.
North America will be a prominent lithium ion battery market during
the same period. The increasing sales of electric vehicles along with
the burgeoning demand for high-quality consumer electronics products are
contributing to the growth of the region.
Global Lithium Ion Battery Market: Competitive Landscape
The global lithium ion battery market is highly consolidated in
nature. Strict regulatory framework for the manufacturing of
conventional batteries is attracting new players to invest in the
market. The influx of new manufacturers is likely to make this market
fragmented over the coming years. However, prominent players offer stiff
competition to new entrants due to their competitive advantage in their
terms of strong foothold and easy access to raw materials.
Research and development activities are expected to be the top
priority for the majority of players to increase their shares in the
market. Some of the key companies operating in the global lithium ion
battery market are LG Chemical Power, Johnson Controls, Hitachi
Chemical, Panasonic, Samsung, Toshiba, Sony, and AESC.
Posted by AGORACOM-JC
at 12:06 PM on Friday, November 22nd, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
What role are lithium-ion batteries playing in energy transition?
Lithium-ion batteries have been essential to the mainstream adoption of electric vehicles as part of a larger energy transition.
This has led to an unprecedented surge in the market for lithium-ion
batteries and an even larger spike in supply. Prices have fallen
recently, but demand is expected to continue rising.
Lithium-ion batteries also have potential applications in
utility-scale renewable energy, although they face competition from
newly developed technologies in that arena.
The energy transition has encouraged industries to move from fossil
fuel to renewable energy sources. In doing so, companies have faced
challenges in determining how to store significant amounts of energy for
extended periods of time. This need is especially acute in the electric
car market, which has turned to lithium batteries for energy storage. Demand for lithium
is projected to grow by as much as 20% in 2019 compared to the previous
year, according to Chilean producer SQM, largely because of increasing
investment in and mainstream adoption of electric vehicles.
More traditional technologies, like internal combustion engines, use
energy almost as soon as it is created. Comparatively, electric vehicles
need to store electrical energy for long periods of time before using
the supplies. Lithium-ion batteries, specifically those using the
compound lithium hydroxide,
store energy while taking up less space than other battery
technologies, and their adoption by the mass market has encouraged
innovation in the technologies underpinning the batteries. The impact
and success of lithium-ion battery technology and its potential in the
global energy transition to renewable energy has been recognized on an
outsized scale — the technology’s creators won the Nobel Prize for chemistry in 2019.
Tesla,
the electric car manufacturer owned by Elon Musk, has become a major
player in the American lithium business. Tesla acquired lithium deposits
across the American West while building huge “gigafactories†to mass
produce the batteries. The company’s plans call for the first of these
factories in Nevada to process 25,000 metric tons of lithium hydroxide
per year, and it has a larger footprint than any other building in the
country. Electric vehicle sales
worldwide surged 75% year over year in the first quarter of 2019, even
as the overall global automobile market contracted; regardless of
opinions over the energy transition’s evolution, all of these cars need
batteries.
Although electric vehicles have been the most significant application
of lithium-ion batteries to date in the energy transition, lithium
could also make renewable energy sources more viable for utilities.
Whereas traditional fossil fuel power plants constantly produce energy,
renewables like solar and wind can only produce energy while the sun is
shining or the wind is blowing. To ensure that the power grid works
constantly, regardless of external variables, transitioning to renewable
energy would require the utility-scale use of energy storage. S&P
Global Market Intelligence analysis shows that lithium-ion batteries are
seen as the technology to compete with in this market.
Potential alternatives to lithium-ion batteries include batteries
made from different chemical compounds. Lithium has faced some
technological challenges in its adoption at the grand scale necessary
for utilities, which resulted in multiple fires in Arizona that led a member of the state’s public utilities commission to call for different technology solutions.
The increasing demand for lithium-ion batteries and the importance
they may hold for the transition to renewable energy has sparked
geopolitical competition to secure a stable supply of batteries. Chinese
firms have invested billions of dollars in lithium deposits across Australia and South America in recent years as part of the country’s plan to quadruple electric vehicle production between 2019 and 2025. In response, European companies
have sought to expand their own investments in lithium so that their
supply of batteries does not rely on foreign supply chains. Companies
investing in European lithium processing have also voiced concerns about
the potential environmental impact
of processing the lithium into batteries in China and then shipping
them across the world for use in Europe. As similar tensions arise
between China and the U.S., lithium has become another flash point in the countries’ trade battles.
Market demand has contributed to a surge in the lithium mining and production businesses. Budgets for mining industry lithium exploration
grew nearly sevenfold worldwide between 2015 and 2018, according to
S&P Global Market Intelligence. The jump in demand for lithium-ion
batteries led to a spike in prices in the early 2010s, and acquisitions
of lithium deposits and mines rose sharply. Since then, the supply of
lithium has risen more quickly than demand, so prices have fallen and
deal-making has slowed.
Although lithium prices across autumn 2019 were on the lower side and
some projects have been delayed or cut back, many market participants
still expect the sector to grow significantly. Lithium production is expected to triple to 1.5 million metric tons worldwide by 2025. S&P Global Platts has reported on fears that even this increase in supply might not be enough to keep up with demand, especially if expected electric vehicle adoption rates continue.
Posted by AGORACOM-JC
at 11:59 AM on Thursday, November 21st, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Lithium: The New Oil
Lithium prices will likely increase in the next few years.
As electric cars replace gasoline powered ones, lithium will gain a strategic value not unlike that of crude oil today.
And, Bolivia, the poorest country in South America, has the resources to become the ‘Saudi Arabia’ of lithium.
The Coup in Bolivia Could Boost Lithium Prices and Energy Resource Geopolitical Dynamics
Lithium prices will likely increase in the next few years. As
electric cars replace gasoline powered ones, lithium will gain a
strategic value not unlike that of crude oil today. And, Bolivia, the
poorest country in South America, has the resources to become the ‘Saudi
Arabia’ of lithium. The resignation of Evo Morales has tightened the
market, indefinitely putting a halt to important lithium mining
projects, which should sustain prices in the medium term. Notably, the
coup and its possible – if not probable – links to lithium mining have
stressed how all South American leaders (just as those of the Persian
Gulf in relation to oil) will have to decide how manage the largest
lithium reserves in the world.
Lithium: The New Oil
To an even more anxious extent than drivers looking for gas stations
during the 1973 OPEC oil embargo, nothing characterizes 21stcentury
‘homo-sapiens’ lifestyle quite like the (insert gadget of
choice)-battery-socket triangle. If social scientists, media gurus and
advertising copywriters have noticed this trend, investors should have
perceived by now that much monetary value lurks behind the gesture of
‘plugging-in’. The whole world needs to ‘plug-in’ angst, and the angst
to recharge batteries will only intensify as car manufacturers are
shifting away from the internal combustion engine in favor of electric
motors at a faster pace than anyone had imagined even five years ago.
Whoever has the most reliable, enduring, lightest and most powerful
battery will build the best vehicles. Batteries, in an imminent future,
will even generate enough power (and be light enough) to propel
airplanes.A cell phone, a notebook, a tablet, work because of the
energy contained and released through lithium-ion batteries. But, the
appeal of electric cars, (or even hybrid cars), is driving the appetite.
Such vehicles are, quite literally, battery packs on wheels. And the
batteries alone make up some 42% of the sticker price. (Source:
Investopedia).
Many see ‘electric power’ as the way to end dependence on oil from
the Middle East. However, such independence is the stuff of geopolitical
fantasies: the rising demand for battery generated electric power has
already shifted the geopolitical balance away from the sands of Saudi
Arabia and closer to those of South America, which holds the richest
lithium deposits in the world; especially, Argentina, Chile and Bolivia
together hold some 80% of the world’s lithium (the Salar de Uuuni,
a salt flat covering 10,000 square kilometers at 3,600 meters above sea
level). being the largest known deposit). It is located near Potosi,
perhaps the most important mining center of South America during the
Spanish colonial era. The salt flat, which is also rich in magnesium,
potassium and sodium, contains some 47% of the known world’s lithium
reserves. At a price ranging between $8,000-10,000 per metric ton, the
potential is clear.
Indeed, the batteries that have hooked the whole world are the
lithium-ion (Li-ion) kind. And they are found in anything from
smartphones to tablets, to electric cars and modern airliners.
Lithium is a low-density metal, typically found in salt form, noted
for its ability to keep its level of charge (in case of inactivity). It
is an abundant alkaline mineral, but nowhere is it abundant (and easy to
extract) as it is in vast majority of the kind that’s most suitable to
make rechargeable batteries. However, one of lithium’s main advantages
as a resource is that, unlike oil, just about everyone has some. It’s
found everywhere; and therefore, it’s unlikely that conflicts will break
out because of it. Should a geopolitical dispute develop over lithium,
it will have more to do with the know-how to advance related battery
technology than Nevertheless, because of its sheer size, all major
industrial powers, starting from the United States, are coveting South
American lithium. Those who will, write rules of the contest to build
the best lithium battery, therefore, will not focus on the geographic
control of the resource. Rather, they will focus on the ability to
combine the expertise, technology and resource together in order to
transform the resource directly into batteries. More than
power-relations, the winners of this game will excel at diplomacy.
Battery dominance will be a factor of scientific competence, mining and
geopolitics.
Who Wants South American lithium?
All industrial powers want South American lithium, though, clearly
the United States, Japan, Germany, South Korea and, of course, China
have the most interest. But, it’s China, which has been investing most
heavily in the research. And therein rests the core of the problem.
Because the real ‘resource’ is the manipulation and technology around
lithium, ambitious governments, focused on lifting standards of living,
have imposed conditions on would-be extractors. They must invest in the
mining as well as the technology. And that’s the key to understand what
happened to President Evo Morales of Bolivia – and the key to
understanding how the race for lithium, the ‘21stcentury oil’, will have
to be played. Indeed, as commercial lithium mining operations in the
Salar de Ayuni began in 2016, President Morales quickly became
dissatisfied with the notion of perpetuating the exporting model that
has kept so many countries behind: that is the export of natural
resources and the import of expensive finished goods.
Morales wanted to establish an in-house battery production process in
order to export finished batteries. And Morales reached such an
agreement in January 2019 with Germany’s ACI System(ACISA).
Among others, ACISA supplies batteries to Tesla Motors. Germany, which
is one of the remaining industrial powers, needs to secure batteries for
its large auto manufacturing groups, which have quickly developed
electric vehicle lineups, after a few years of trailing behind the
Japanese and Americans. But last November 4, the Bolivian government
canceled the agreement after protests from Potosi locals, expressing
anger over the terms of the deal and the environmental consequences
deriving from the magnesium tailings from the lithium extraction.
Morales, for his part, probably expected more investment in the human
resources through the installation of educational facilities, chemistry
faculties, or at least scholarships to train the local people in the
relevant skills. Morales, in turn, wanted to sign a $2.3 billion
agreement – this time with China – turning Beijing into its strategic
partner for lithium extraction and battery technology. Morales thought
China to offer the best solution to achieve a complete battery
production supply chain. The Bolivian government was even rumored to
attempt a nationalization of the project, but a week after the
cancellation, President Evo Morales ‘resigned’ (or was the victim of a
coup).
Is there a coincidence between the cancellation and the resignation?
Perhaps, but the resulting political turmoil has effectively cut out
Bolivia and its massive lithium resources from the market. Even China,
which had designs with a project of its own in the Salar de Uyuni, will
not have a chance to pursue any mining, given the political and social
instability – even if the new people in charge will seek re-alignment
with the West (i.e. USA, Europe) instead of China and Russia.
Posted by AGORACOM-JC
at 3:30 PM on Friday, November 15th, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Europe EVs now use 57% more lithium carbonate equivalent
Changing mix of EV sales is most noticeable in Europe where the average battery in new passenger EVs sold in September contained 15.8kg of LCE
Constitutes a 57% surge compared to last year, thanks in no small part to the popularity of the Tesla Model 3 on the continent
Electric car pioneer Tesla is already producing units on a trial basis at its giant Shanghai gigafactory despite only breaking ground this year, but thanks to changes to the Chinese EV subsidy program, demand for locally-made Teslas may fall short of expectations.
On Monday, China’s automobile manufacturing industry body said fewer
new energy vehicles, or NEVs as they are termed domestically, could be
sold this year than in 2018 (last year sales boomed by more than 60%).
Sales of NEVs – which apart from battery-powered vehicles also
include hybrids and fuel cell cars – fell by more than 45% in October
from the same month last year, adding to the woes of an industry coping
with 16 straight months of declining overall sales.
Changes to China’s EV incentive program favour hybrids so lithium loads may start to tend downwards in that country too
Adamas Intelligence tracks the battery capacity (and the metals used in them)
of electric vehicles sold around the world and the slowdown in the EV
market, where lithium-ion batteries dominate, has already showed up in
raw material deployment data.
In September 2019, the average new passenger EV including plug-in and
conventional hybrids sold globally contained 12.2 kilograms of lithium
carbonate equivalent (LCE), a modest increase of 4% over 2018, according
to the latest Adamas report.
The Toronto-based research company’s data shows China still
outstripped global growth in September with a 7% increase in LCE on a
per-EV basis, reaching a sales-weighted average of just shy of 20kg
thanks to the prevalence of full electric models in the country.
That’s in stark contrast to Japan, where hybrids represent more than
90% of EV sales and average batteries contain only 1.1kg of LCE. Changes
to China’s EV incentive program favour hybrids so lithium loads may
start to tend downwards in that country too.
The changing mix of EV sales is most noticeable in Europe where the
average battery in new passenger EVs sold in September contained 15.8kg
of LCE.
That constitutes a 57% surge compared to last year, thanks in no
small part to the popularity of the Tesla Model 3 on the continent.
Teslas have always had bigger batteries than competitor cars to help
with fast-charging and range.
In the US the trend is in the opposite direction – with passenger EVs
leaving showrooms containing on average 15.2kg of LCE, 12% less than in
September 2018.
Posted by AGORACOM-JC
at 12:59 PM on Thursday, November 14th, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Sales Revenue of Palladium to Soar in the Near Future Owing to Growing Consumer Adoption
Global market for palladium is likely to experience
significant growth with declining demand for metals and increasing
demand for recycling metals, leading to palladium demand outstripping
the supply.
In addition, changing prospects of investments in palladium have also contributed to the growth of the market
Palladium
is a lustrous silvery-white rare metal used in a diverse range of
applications. The metal with other elements such as osmium, iridium,
ruthenium, rhodium, and platinum are referred to as Platinum Group
Metals (PGM). Palladium is majorly consumed in the automotive industry
as catalytic converters, manufacturing of electronics and jewelry, as
well as chemical and dental applications. Palladium is sourced from two
major sources, viz., mine production and recycling.
The global market for palladium is likely to experience significant
growth with declining demand for metals and increasing demand for
recycling metals, leading to palladium demand outstripping the supply.
In addition, changing prospects of investments in palladium have also
contributed to the growth of the market. Several new palladium
exchange-traded funds by companies such as Absa Capital in South
Africa are expected to create a significant boost for the palladium
market.
Growing demand for palladium in catalytic converters in the
automotive industry in vehicles exhausts are one of the major growth
factors driving the palladium market. Demand for the metal from other
sectors such as jewelry and industrial are also anticipated to
contribute to the growth of the market. However, rising prices of
palladium owing to supply issues in South Africa and declining state
stockpiles in Russia are expected to hamper the growth of the market.
North America was the largest consumer for palladium, followed by China
owing to the presence of the vast automotive industry in the region.
Future market growth is expected to be from Asia Pacific with the
growing industrial activities in emerging economies such as India. These
factors are expected to provide new opportunities for the growth of the
market.
