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Recent Developments in the Lithium Market

Posted by AGORACOM-JC at 11:06 AM on Friday, November 20th, 2015

  • Sales of electric vehicles (“EVs”) have increased significantly in 2015 due to a strong market in Europe and China
  • According to global market research firm TrendForce, the worldwide sales of EVs for the first three quarters of 2015 have increased 31% year on year to 330,000 units, with China accounting for the largest share, partly due to government support

Following up on Avalon Rare Metals’ July 13, 2015 Industry Bulletin “Growing lithium demand creates new opportunities for Avalon’s Separation Rapids Project,” we are pleased to provide an update on the lithium market, where demand for lithium chemicals is growing and prices are rising.

Sales of electric vehicles (“EVs”) have increased significantly in 2015 due to a strong market in Europe and China. According to global market research firm TrendForce, the worldwide sales of EVs for the first three quarters of 2015 have increased 31% year on year to 330,000 units, with China accounting for the largest share, partly due to government support. This has had a positive effect on demand for lithium-ion batteries and in turn for lithium chemicals.

On September 15, 2015, FMC Corporation announced that effective October 1, 2015 it would increase prices for the lithium products it sells including lithium carbonate, lithium chloride and lithium hydroxide in all global regions by 15% as “market growth is outpacing current industry supply capabilities,” according to Chris Senyk, global marketing director at FMC Corporation.

Also, the Xinhua Finance Agency recently reported on some transactions earlier this year inside China for battery grade lithium carbonate priced in the range of 58,000 – 60,000 yuan per metric ton (US$9,100–9,400 per tonne)*, an increase of between 9% and 11% from earlier this year. Note that lithium chemicals are not traded on a commodities exchange and prices reported represent periodic spot transactions.

The trend of increasing demand for EVs is consistent with Stormcrow Capital’s forecast of May 2015 in which they anticipate demand for lithium for batteries to triple in the next ten years and the overall demand for lithium to double during the same period. Stormcrow also expects that this demand will outpace supply growth over the next five years.

Yesterday, Nemaska Lithium Inc. (“Nemaska”) announced the signing of a Memorandum of Understanding (“MOU”) with Johnson Matthey Battery Materials Ltd (“JMBM”) of Candiac, Quebec. The MOU contemplates an up-front payment by JMBM of $12 million in return for future services and products of the same value. The MOU also includes provisions for a long term supply agreement between Nemaska and JMBM for lithium hydroxide and carbonate. This demonstrates that some consumers of lithium are taking action now to secure long term future supplies from emerging producers.

In September 2014, Tesla Motors announced plans to build a “Gigafactory” in Nevada to produce Li-ion batteries for its future electric cars. In April 2015, Tesla CEO Elon Musk unveiled the Li-ion “Powerwall” battery for home energy storage. One of the ways improvements in energy density are being achieved is through utilization of ever higher purities of input raw materials including lithium chemicals. Simon Moores, Managing Director of Benchmark Minerals Intelligence, recently stated that “Tesla will single-handedly increase lithium hydroxide demand by 50% on 2013 levels at a time when demand is also increasing from other battery producers that are expanding lithium-ion cell output on a significant scale. Should the company be looking to purchase even 10,000 tonnes today, the industry would not be able to meet this demand.”

Benchmark Minerals Intelligence provides independent data and analysis on the lithium ion battery supply chain. Mr. Moores will be joining Avalon’s CEO Don Bubar at the Company’s presentation on the Separation Rapids Lithium Project to investors in London on November 26, 2015 and will talk specifically about the market for the critical materials used in the lithium ion battery. Please contact Andrew Keen at [email protected] for more information about this evening event.

For questions or feedback, please email Avalon at [email protected].

About Avalon Rare Metals Inc.
Avalon Rare Metals Inc. (TSX & NYSE MKT: AVL) is a Canadian mineral development company specializing in niche market metals and minerals which are in growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium and zirconium. Avalon is currently focusing on its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.

130 Adelaide St. W, Suite 1901
Toronto, ON M5H 3P5
Tel: (416) 364-4938
Email: [email protected]

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Durango to Review Additional Lithium Projects

Posted by AGORACOM-JC at 11:41 AM on Monday, November 16th, 2015

  • Reviewing several other lithium projects submitted to the Company by third parties.

The projects are in the areas of:

  • Alberta Lithium Brine near Lithium Exploration Group;
  • Adjacent Nemaska Lithium ground not currently owned by Durango; and
  • Property near Pure Energy Minerals in Clayton Valley, Nevada which is also lithium brine.

Vancouver, BC / November 16, 2015 – Durango Resources Inc. (the “Company” or “Durango”) reports that the board of directors is reviewing several other lithium projects submitted to the Company by third parties. The projects are in the areas of:

-Alberta Lithium Brine near Lithium Exploration Group;

-Adjacent Nemaska Lithium ground not currently owned by Durango; and

-Property near Pure Energy Minerals in Clayton Valley, Nevada which is also lithium brine.

Marcy Kiesman stated, “Durango has received numerous calls and emails related to available lithium projects with green energy potential and the Company will review the projects and conduct due diligence as required.”

About Durango

Durango is a natural resources company engaged in the acquisition and exploration of mineral properties. The Company has a 100% interest in the Mayner’s Fortune and Smith Island limestone properties in northwest British Columbia, the Decouverte and Trove gold properties in the Abitibi Region of Quebec, and the NMX East lithium property near the Whabouchi mine in Quebec and three sets of claims in the Labrador nickel corridor.

For further information on Durango, please refer to its SEDAR profile at www.sedar.com.

Marcy Kiesman, Chief Executive Officer

Telephone: 604.428.2900

Facsimile: 888.266.3983

Email: [email protected]

Website: www.durangoresourcesinc.com

Forward-Looking Statements

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs, execution of a definitive agreement, raising of funds, obtaining regulatory approvals and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties relating to Durango, please refer to the Company’s prospectus filed on its SEDAR profile at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Durango to Explore Discovery and Reveals Lithium in Quebec

Posted by AGORACOM-JC at 12:51 PM on Thursday, November 12th, 2015

  • Announces that its Decouverte (Discovery) work geophysical exploration program with partner Institut National de la Recherche Scientifique (INRS) of Quebec is on track to commence within the next 10 days
  • Marcy Kiesman stated, “The NMX East property is one that Durango has been interested in for some time due to its green energy potential and that it is located along the Route Nord not too far away from the Decouverte project in northern Quebec…”

In addition to the Decouverte property, Durango owns projects related to LNG, nickel and lithium which are all green energy related projects located within stable political and mining friendly jurisdictions. Durango holds a 100% interest in a lithium property tied to Nemaska Lithium Inc.’s (TSX.V-NMX) Whabouchi property in Quebec. The NMX East property was staked by management in December of 2014 and has an all season road access via the Route Nord. The property is 400 hectares and is located within a few kilometres of Nemaska’s proposed mining pit. Nemaska Lithium is developing the world’s newest lithium mine in Quebec and has signed agreements with its key stakeholders, gained the required permits and was recently awarded both Federal Environmental Approval and the Province of Quebec Mine Approval.

Marcy Kiesman stated, “The NMX East property is one that Durango has been interested in for some time due to its green energy potential and that it is located along the Route Nord not too far away from the Decouverte project in northern Quebec. The Company is committed to providing shareholders with alternative green energy related mineral exploration projects in the areas of investor interest.”

About Durango

Durango is a natural resources company engaged in the acquisition and exploration of mineral properties. The Company has a 100% interest in the Mayner’s Fortune and Smith Island limestone properties in northwest British Columbia, the Decouverte and Trove gold properties in the Abitibi Region of Quebec, and the NMX East lithium property near the Whabouchi mine in Quebec and three sets of claims in the Labrador nickel corridor.

For further information on Durango, please refer to its SEDAR profile at www.sedar.com.

Marcy Kiesman, Chief Executive Officer

Telephone: 604.428.2900

Facsimile: 888.266.3983

Email: [email protected]

Website: www.durangoresourcesinc.com

Forward-Looking Statements

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs, execution of a definitive agreement, raising of funds, obtaining regulatory approvals and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties relating to Durango, please refer to the Company’s prospectus filed on its SEDAR profile at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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INTERVIEW: Avalon VP Discusses Lithium Markets and Separation Rapids Project

Posted by AGORACOM-JC at 11:00 AM on Thursday, October 22nd, 2015

Avalon VP Discusses Lithium Markets and Separation Rapids Project

Why Lithium?

  • Lithium has been used in ceramics and glass for many decades.
  • The largest use for lithium is in rechargeable batteries and this use for lithium was invented in the 70’s.
  • The use of lithium in batteries has tripled since 2008 (20,026 t LCE in 2008 to 64,398t LCE in 2014) and the forecasted growth rate of lithium demand growth is 8% per year to 2025 and the predicted growth rate for li in battery use is 13% (CAGR).

About Our Guest

  • Pierre brings leadership and international marketing, sales and trading experience in London Metal Exchange (LME) traded metals, industrial chemicals and industrial minerals to Avalon.
  • Has over 25 years of experience in LME and non-LME traded commodities.
  • At Avalon, responsible for understanding the markets and creating strategic partnerships with potential customers and investors.

Hub On AGORACOM / Corporate Profile / Watch Interview

 

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5 Basic Lithium Facts

Posted by AGORACOM-JC at 9:48 AM on Wednesday, October 21st, 2015

With gold and silver prices still under pressure, more and more investors are starting to look at the critical metals space, and at lithium in particular.

Lithium-ion batteries power everything from cellphones to laptops to electric vehicles, and demand for the metal is certainly on the rise. Many companies and investors have been drawn in by news of Elon Musk and Tesla Motors’ (NASDAQ:TSLA) lithium-ion battery gigafactory.

However, Tesla’s isn’t the only lithium-ion battery megafactory out there, and there’s more to lithium and the lithium market than electric vehicle batteries.

Here’s a look at five basic lithium facts investors should know.

1. It’s the lightest metal on the periodic table

Lithium is the lightest, or least dense, elemental metal. It is about half as dense as water.

The metal also has a high specific heat, making it useful in the production of heat-resistant glass, while its electrochemical potential makes it useful in batteries.

2. It can be found in brines, hard-rock deposits and clays

Lithium is found all over the world, in both hard-rock deposits and evaporated brines.

The world’s largest hard-rock mine is the Greenbushes mine in Australia. Most of the world’s lithium brine production comes from salars in Chile and Argentina. Bolivia is thought to hold the world’s largest lithium reserves, and the prolific lithium triangle spans all three South American countries.

Several companies are also looking to develop clay-based lithium deposits. For example, Western Lithium (TSX:WLC) holds the King’s Valley lithium deposit in Nevada, while Bacanora Minerals (TSXV:BCN,LSE:BCN) and joint venture partner Rare Earth Minerals (LSE:REM) are advancing the Sonora lithium project in Mexico.

3. It’s not just for batteries

While batteries have been getting most of the attention in the lithium space lately — and while demand for lithium from the battery sector is certainly on the rise — it’s worth noting that other sectors continue to account for a healthy proportion of lithium demand.

Citing data from Roskill, a report from Stormcrow Capital notes that in 2013, rechargeable batteries made up 29 percent of lithium demand, while the remainder of the market was mostly made up by various industrial end uses. That includes ceramics (14 percent), glass-ceramics (12 percent), greases (8 percent) and metallurgical powders (6 percent).

Lithium is also used in pharmaceuticals, lubricants and heat-resistant glass.

4. Lithium hydroxide vs. lithium carbonate?

After lithium is extracted from a deposit, it is often processed into lithium carbonate, lithium hydroxide or lithium metal. Battery-grade lithium carbonate and lithium hydroxide can be used to make cathode material for lithium-ion batteries. Most contaminants must be removed in order for either material to be considered battery grade.

Hydroxide tends to be more expensive, but can produce cathode material more efficiently and is actually necessary for some types of cathodes, such as nickel–cobalt–aluminum oxide (NCA) and nickel-manganese-cobalt oxide (NMC).

In addition to battery-grade materials, there is also a market for technical-grade lithium. Technical-grade lithium products, such as technical-grade lithium concentrate, sell for a cheaper price than battery-grade products, and are used in applications such as glass and ceramics. Technical-grade lithium products must have very low concentrations of iron.

Nevada Sunrise Gold (TSXV:NEV), a company that has earned a spot on the 2015 TSX Venture 50, and has quality gold properties in the prolific jurisdiction of Nevada where mining infrastructure and services are well developed. Nevada Sunrise Gold recently acquired the Neptune Lithium Property in Nevada, which has the potential to host lithium-bearing brines in subterranean aquifers beneath the Clayton Valley floor. Learn more about this company today!

5. Prices can be hard to find

Like most critical metals, lithium is not traded on any public exchange, and major lithium producers don’t often give out stats. For a long time, most of the world’s lithium was produced by an oligopoly of producers often referred to as the “Big 3,” which included Rockwood Lithium (now owned by Albemarle (NYSE:ALB)), Sociedad Quimica y Minera de Chile (NYSE:SQM) and FMC (NYSE:FMC).

Producers in China have grabbed a larger share of the lithium market in recent years, but the lack of information on pricing has continued.

However, interested investors can look to experts in the lithium space for market reports and price forecasts. For example, the report from Stormcrow Capital mentioned above includes a detailed forecast for lithium prices.

Source: http://investingnews.com/daily/resource-investing/energy-investing/lithium-investing/five-basic-facts-about-lithium/?mqsc=E3814106&utm_source=WhatCountsEmail&utm_medium=INN_FullList+INN%20Daily+INN%20Daily&utm_campaign=INN%20Daily%20Automated

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Lithium demand from Electric Vehicles, “EVs,” alone could grow 30% annually for years to come

Posted by AGORACOM-JC at 12:38 PM on Thursday, July 23rd, 2015

Lithium demand from Electric Vehicles, “EVs,” alone could grow 30% annually for years to come

Jul 17, 2015 | Posted by: Peter Epstein

 

  • Conventional wisdom seems to say that overall lithium demand will grow by 8%-12% annually
  • Everything’s going electric, lithium-ion batteries large & small will reign supreme

A short time ago, manufactures released hybrid gasoline-electric cars so that they could claim to be green companies. That has completely changed, now the race is on for market share, volumes and profits.

I’m on record as stating that demand for lithium will grow faster than most believe. Conventional wisdom seems to say that overall lithium demand will grow by 8%-12% annually. I understand why that range has been adopted, it’s already a fast growth rate by historical standards. Commodity and natural resource demand is frequently said to increase at, “the rate of GDP growth.” I wonder which country’s GDP rate is being referred to, hopefully not the U.S. A prime reason for my bullishness on lithium demand, with overall growth closer to 20% a year, is that Tesla is attracting A LOT of attention and competition. I will spare readers the obligatory rattling off a list of Tesla’s growing competition. But there’s much more to the story than Tesla.

I believe that hybrid and plug-in hybrid vehicles will be phased out sooner rather than later. Any manufacturer that can’t deliver a full EV within the next 2-4 years might as well start working on flying cars, previously known as airplanes. This paradigm shift to EVs is not 5-10 years away, it’s right around the corner. Hundreds of millions or even billions of dollars are deployed on new car platforms, why would it be any different for the builders of EVs? A short time ago, manufactures released hybrid gasoline-electric cars so that they could claim to be, “green” companies. That’s completely changed, now the race is on for market share, volumes and profits.

RANGE ANXIETY!!

“Range anxiety.” That’s the cool way of saying that prospective buyers of EVs are on the fence, until they’re confident that a massive infrastructure of electric charging stations is in place. Guess what? That’s nonsense. According to the U.S. Department of Transportation, average daily driving per capita is about 40 miles. Commuters that drive 100-150 miles or more round trip are the exception, not the rule. Does 40 miles per day sound too low? That’s the U.S. average, the range around that average is probably fairly large. Take for example city dwellers that don’t drive daily.

If one were talking about natural gas stations, “range anxiety” would be a serious concern. Recall that T. Boone Pickens has been calling for the replacement of gasoline and diesel fueled cars with cleaner burning natural gas. In that highly unlikely scenario there would have to be a huge build out of natural gas stations. Not so with EVs. Electric Vehicles won’t require an epic rollout of thousands upon thousands of charging stations. As EVs evolve, there will be dozens of models with driving ranges in excess of 100 miles. By then, range anxiety will disappear. Instead of searching for a charging station, one’s garage electricity outlet will do the trick.

Everything’s going electric, lithium-ion batteries large & small will reign supreme

Admittedly there are occasions when long distances are called for. In this circumstance, let’s assume that a gasoline powered vehicle remains the best alternative. That still allows for EVs to potentially become 1 of the 2 vehicles in a suburban family. That equates to a staggering amount of lithium demand without the need of ubiquitous charging stations. The same will be the case for bikes, motorcycles, mail delivery vehicles and buses, (among others). That’s why I believe that the annual growth rate of lithium demand for EVs alone could be as high as 30%, a tripling in 5 years. If the fastest growing segment were to triple (30% growth annually from 2016-2020), that suggests 20% overall demand growth for lithium is not a crazy assumption.

Without range anxiety, EVs will become ubiquitous, not charging stations! This is especially true given that Nissan, Ford, GM and Toyota, (among others) will be coming out with a number of inexpensive EVs with price tags in the $20k-$25k range sooner rather than later. That’s before considering favorable State and/or Federal tax treatment. Importantly, the lower price point EVs will not necessarily use less lithium. Not if they want to achieve high milage per charge. Miles per charge will be a key determinate of customer preference. Note that inexpensive EVs will benefit as much as high end EVs, from lower annual operating expenses by plugging in instead of filling up.

Dajin Resources Corp. (DJI.V) / (DJIFF) a high risk / high return opportunity

While the available supply of lithium is difficult to forecast, and will come on-stream unevenly, demand growth for EVs alone could be two or three times that of today’s consensus. Clearly, the demand for lithium will be lower or higher than expected. Readers probably know which side of the coin I’m betting on. That’s why I like a small cap, pure-play lithium company named Dajin Resources Corp. (DJI.V) (DJIFF). Combined U.S. and Canadian trading volume is averaging roughly 625,000 shares per day. The company has no debt and a solid balance sheet. Warrant exercises have been helping to maintain adequate cash balances.

Taking a contrarian view by being substantially more bullish on lithium demand from EVs, calls for an investment approach that differs from those who follow the crowd. Following the crowd is prudent if conventional wisdom prevails. However, for those like me who believe overall demand for lithium could grow by 20% annually, (30% for EVs alone), a way to articulate a bullish position is through juniors such as Dajin Resources. Taking a contrarian view entails both higher risk and higher reward. Unlike following the crowd though, an investment in Dajin Resources could play off quite handsomely. With properties in both Nevada’s Lithium Hub, located approximately 12 km northeast of Rockwood’s decades long Nevada operations and a very large land position in Argentina’s, Lithium Triangle. This company’s tock is strongly positioned to move considerably higher upon an increase in lithium prices and/or a rebound in the morbid TSX Venture Exchange.

Disclosure:

Dajin Resources (ticker DJI.V) (DJIFF) – Mr. Epstein owns shares of this company. Investors should consult with their own advisors before making investment decisions. Mr. Epstein is not an investment advisor. The article on this company on EpsteinResearch.com should be viewed in this context. This company is highly speculative and not suitable for all investors. As of [5/1/15] Dajin Resources is a Sponsor of EpsteinResearch.com on a month-to-month basis.

Read more at: http://www.miningfeeds.com/2015/07/17/lithium-demand-from-electric-vehicles-evs-alone-could-grow-30-annually-for-years-to-come/#sthash.qvlZyaHW.dpuf

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Lithium Demand Will Grow Faster Than Bulls Imagine

Posted by AGORACOM-JC at 3:20 PM on Tuesday, May 19th, 2015

By Editing NAI
05/13/2015 2:11 a.m.

It all started with Tesla Motors’ (NASDAQ:TSLA) announcement of its battery gigafactory in February 2014. That news was discussed endlessly with breathless excitement. The news sparked a revival in lithium, cobalt and graphite juniors. For example, Western Lithium USA (TSX:WLC), based in Nevada, more than doubled that month. At the time, I wrote a few articles saying that the gigafactory was great news for select graphite companies. I didn’t mention lithium or cobalt, simply because I was less fluent in those. Today, I’m better prepared to articulate the lithium story, one of the hotter sectors in the natural resources space. Why now? I think that the lithium-ion battery might be reaching a “tipping point,” the phrase made famous by Malcolm Gladwell. Please note, I don’t use catchphrases loosely — lithium’s spike in demand is no “black swan” event, and we’re not near “peak lithium,” although we could see supply shortages on the horizon. Tesla’s gigafactory not only caught everyone’s attention, but also caught on so well that there are already five to six announced or in-construction gigafactories (Tesla’s is the largest).

Lithium demand “is spiking” for several reasons, again heavily influenced by the $5-billion Tesla facility. Interestingly, the original concept was that the Tesla facility would be completed by 2020. Now conventional wisdom says 2017 to 2018, another bullish data point. Tesla’s fully electric car was way too awesome for its own good. It guaranteed that new competition would enter the space, and it has. Here’s an abbreviated list of 15 automakers in the plugin-EV (hybrid) or fully EV market: BMW, Mitsubishi, Toyota, Nissan, Honda, Tesla, GM, Ford, Kia, Fiat, Mercedes, Porsche, Volkswagen, Audi and Hyundai. This list probably doesn’t even contain all of the well-known brands. Many of these automakers had no offerings of plugin-EV (hybrid) or fully EVs until after Tesla’s. Here’s another fact, not my opinion: there are dozens of less-well-known brands diving into the race. China and Europe have plenty of them. China is trying mightily to cut down on air pollution and European cities are small enough to be quite amenable to EVs. Check out this article if you don’t believe me! And just wait until ALL hybrids become full EVs. A certainty in my mind.

So many uses, hard to follow demand, harder to forecast

So far I’ve mentioned Tesla’s new paradigm introduction of a “real” EV and the fact that it is attracting MANY competitors. I’ve also pointed to the multiple gigafactories spurred on by Tesla’s. But wait, there’s more. About a week ago, Tesla announced a much-ballyhooed home lithium battery storage system that can run one’s home for up to eight hours. This product is thought to be especially attractive to homes with solar panels. This is yet another shot across the bow warning of another leg up in lithium demand. I guarantee that Elon Musk’s home storage units will attract a lot of competition (some superseded Tesla), and perhaps the need for more battery gigafactories? Tipping point or not, lithium demand is moving substantially higher by the day. By the time analysts come around to forecasting a 12- to 15-percent CAGR from 2015 to 2020, the growth rate could be more like 25 to 35 percent. I have no scientific backing for my projection of 25 to 35 percent, I’m just saying that extrapolating 2012 to 2015 growth factors forward will not work. Don’t make me mention the 200 million electric bikes in China alone, because I will if I have to. Another factoid mentioned far less often is the widespread adoption of hybrid buses, taxis and forklifts (and similar equipment in warehouses around the globe). Is anyone contemplating the replacement lithium batteries that will be required by many electronic devices, power tools and more?

Above, I mentioned Western Lithium, which has a well-deserved market cap of $105 million. Lithium Americas (TSX:LAC) has a $70-million market cap. Before moving down the list, please also consider ASX-listed Orocobre (ASX:ORE), which has a market cap of $425 million and is a pure-play, producing lithium company. Of course, Orcobre is several years ahead of small-cap companies like Dajin Resources (TSXV:DJI) (which trades a combined 365,000 shares per day) and Pure Energy Minerals (TSXV:PE). However, we’ve seen this movie before. When a commodity is in high demand, this is what happens. Small companies acquire or get options on prospective deposits, they stake new ground and they explore and develop as available capital prudently allows.

Time is money. Do new entrants really want to start a greenfields project? Or might they prefer to save two, three, four years’ worth of money and leg work provided by a well-run junior? I believe that in a strong market — or dare I say a bull market — in lithium, companies with the lowest market caps, solid management teams and highly prospective deposits will be sought after. I submit that lithium companies with market caps of $5 to $15 million today have stocks more likely to double, triple, quadruple, quintuple, sextuple, septuple or octuple than some of the abovementioned plays. Sorry, I had to use the word “septuple” at least once in my life.

For example, for Dajin Resources, a return of 10 times on its market cap would still place it at a discounted valuation to Western Lithium. Don’t get me wrong, Dajin has considerably more risk, but also considerably more upside, at least if one shares my bullish view on lithium. Even though Dajin and Pure Energy are behind their peers in reaching initial production, they are actually well ahead of new entrants in terms of permitting, environmental studies, seismic, drilling, community relations, access to infrastructure and mining officials.

Peter Epstein, Founder of epsteinresearch.com

Source: resourceinvestingnews.com

Source: http://www.nai500.com/intelligence/show_article/133053

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Tesla launches Powerwall home battery with aim to revolutionize energy consumption

Posted by AGORACOM-JC at 11:55 AM on Friday, May 1st, 2015

Larger version of battery has been tested in pilot program

The Associated Press Posted: May 01, 2015 12:35 AM ET Last Updated: May 01, 2015 9:54 AM ET

Tesla Motors CEO Elon Musk unveils large utility scale home batteries at the Tesla Design Studio in Hawthorne, Calif. on Thursday night.

Tesla Motors CEO Elon Musk unveils large utility scale home batteries at the Tesla Design Studio in Hawthorne, Calif. on Thursday night. (David McNew/AFP/Getty Images)

Tesla CEO Elon Musk is trying to steer his electric car company’s battery technology into homes and businesses as part of an elaborate plan to reshape the power grid with millions of small power plants made of solar panels on roofs and batteries in garages.

Musk announced Tesla’s expansion into the home battery market amid a party atmosphere at the company’s design studio near Los Angeles International Airport. The festive scene attended by a drink-toting crowd of enthusiasts seemed fitting for a flashy billionaire renowned for pursuing far-out projects. For instance, colonizing Mars is one of Musk’s goals at Space X, a rocket maker that he also runs.

Now, he is setting out on another ambitious mission. “Our goal here is to fundamentally change the way the world uses energy,” Musk told reporters gathered in Hawthorne, Calif.

Although Tesla will make the battery called “Powerwall,” it will be sold by a variety of other companies. The list of partners includes SolarCity, a solar installer founded by Musk’s cousins, Lyndon and Peter Rive. Musk is SolarCity’s chairman and largest shareholder.

I don’t believe this product in its first incarnation will be interesting to the average person.– Peter Rive, CTO of Tesla partner SolarCity

As with Tesla’s electric cars, which start around $70,000 US, the battery might be too expensive for most consumers. When it goes on sale, the system will carry a suggested price of $3,000 to $3,500, depending on the desired capacity. That could discourage widespread adoption, especially for a product that may only have limited use.

“I don’t believe this product in its first incarnation will be interesting to the average person,” conceded Peter Rive, SolarCity’s chief technology officer. Rive, though, still expects there to be enough demand to substantially increase the number of batteries in homes.

Hopes to ship internationally next year

Musk is so encouraged by the initial demand that he believes Tesla and other future entrants in the market will be able to sell two billion battery packs around the world — roughly the same number of vehicles already on roads. Although that may sound like a “super crazy” goal, Musk insisted it “is within the power of humanity to do.”

TESLA-MOTORS/BATTERIES

Tesla Energy batteries for businesses and utility companies are pictured providing energy for the Tesla Motors Powerwall Home Battery on Thursday. (Patrick T. Fallon/Reuters)

It will take a long time to get there. Tesla hopes to begin shipping a limited number of Powerwall batteries this summer in the U.S. before expanding internationally next year.

The long-term goal is to reduce the world’s reliance on energy generate from fossil fuels while creating regional networks of home batteries that could be controlled as if they were a power plant. That would give utilities another way to ensure that they can provide power at times of peak demand.

For now, the battery primarily serves as an expensive backup system during blackouts for customers like David Cunningham, an aerospace engineer from Foster City, California. He installed a Tesla battery late last year to pair with his solar panels as part of a pilot program run by the California Public Utilities Commission to test home battery performance.

Can be recharged with solar panels

Although Cunningham’s home has not endured a blackout in the six months that he has had the battery, it’s capable of running critical home appliances like lights and refrigeration and can be recharged by solar panels during the day.

“As long as a person has solar panels, it’s just a natural fit for the two to go together,” Cunningham, 77, said. “I consider it to be a whole power system right here in my home.”

Tesla Battery Power For Homes

In this April 20, 2015 photo, David Cunningham shows a prototype Tesla battery system that powers his Foster City, Calif. home. Cunningham installed the battery late last year to pair with his solar panels as part of a pilot program run by the California Public Utilities Commission. (Jeff Chiu/The Associated Press)

The battery Cunningham got had a whopping sticker price of $18,300, but he took advantage of state incentives that reduced the battery’s price to $7,500.

“The value proposition now is around reliability and backup power more than it is around savings, but over time that may change,” said Shayle Kahn, an analyst at GTM Research.

The batteries are likely to become more useful if, as expected, more utilities and regulators allow power prices to change throughout the day based on market conditions. That way, the software that controls the solar and battery system will allow customers to use their home-generated power — and not expensive grid power — when grid prices spike.

Many commercial customers already buy power this way, and Tesla also announced battery systems designed for them, along with bigger battery packs that utilities can use to manage their grids. Analysts say these utility and commercial markets will probably be more promising for Tesla during the next few years than residential customers.

Several businesses, including Amazon.com and Target, plan to use Tesla’s battery storage system on a limited basis. Southern California Edison is already using Tesla batteries to store energy.

Tesla is building a giant factory in Nevada that will begin churning out batteries in 2017, so Musk needs to begin drumming up customers now. The spotlight may help Musk push policy makers and utilities to consider reshaping regulations so solar and battery storage could be more easily incorporated into the larger electric system, Kahn said.

Tesla’s ambitions already have intrigued homeowners like Mike Thielen, who installed one of the prototype batteries with SolarCity panels on his Redondo Beach, Calif., home last year. Although he hasn’t needed the backup power yet, he has embraced the concept.

“I think it’s brilliant,” he said. “I would consider upgrading to a more powerful home battery if they could figure out a way to get me totally off the grid.”

Source: http://www.cbc.ca/news/business/tesla-launches-powerwall-home-battery-with-aim-to-revolutionize-energy-consumption-1.3056587

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Clean Energy Revolution Is Ahead of Schedule

Posted by AGORACOM-JC at 11:16 AM on Wednesday, April 8th, 2015

By Noah Smith

The most important piece of news on the energy front isn’t the plunge in oil prices, but the progress that is being made in battery technology. A new study in Nature Climate Change, by Bjorn Nykvist and Mans Nilsson of the Stockholm Environment Institute, shows that electric vehicle batteries have been getting cheaper much faster than expected. From 2007 to 2011, average battery costs for battery-powered electric vehicles fell by about 14 percent a year. For the leading electric vehicle makers, Tesla and Nissan, costs fell by 8 percent a year. This astounding decline puts battery costs right around the level that the International Energy Agency predicted they would reach in 2020. We are six years ahead of the curve. It’s a bit hard to read, but here is the graph from the paper:

battery efficiencyThis puts the electric vehicle industry at a very interesting inflection point. Back in 2011, McKinsey & Co. made a chart showing which kind of vehicle would be the most economical at various prices for gasoline and batteries:

competitive
Looking at this graph, we can see the incredible progress made just since 2011. Battery prices per kilowatt-hour have fallen from about $550 when the graph was made to about $450 now. For Tesla and Nissan, the gray rectangle (which represents current prices) is even farther to the left, to about the $300 range, where the economics really starts to change and battery-powered vehicles become feasible.

QuickTake Batteries

But in the past year, the price of gasoline has fallen as well, and is now in the $2.50 range even in expensive markets. A glut of oil, and a possible thaw in U.S.-Iran relations, have moved the gray rectangle down into the dark blue area where internal combustion engines reign supreme.

Still, if battery prices keep falling, the gray rectangle will keep moving to the left. The Swedish researchers believe that Tesla’s new factories will be able to achieve the 30 percent cost reduction the company promises, simply from economies of scale and incremental improvements in the manufacturing process. That, combined with a rebound in gas prices to the $3 range, would be enough to make battery-powered vehicles an economic alternative to internal combustion vehicles in most regions.

But this isn’t the only piece of good energy news. Investment in renewable energy is powering ahead.

The United Nations Environment Programme recently released a report showing that global investment in renewable energy, which had dipped a bit between 2011 and 2013, rebounded in 2014 to a near all-time high of $270 billion. But the report also notes that since renewable costs — especially solar costs — are falling so fast, the amount of renewable energy capacity added in 2014 was easily an all-time high. China, the U.S. and Japan are leading the way in renewable investment. Renewables went from 8.5 percent to 9.1 percent of global electricity generation just in 2014.

That’s still fairly slow in an absolute sense. Adding 0.6 percentage point a year to the renewable share would mean the point where renewables take half of the electricity market wouldn’t come until after 2080. But as solar costs fall, we can expect that shift to accelerate. In particular, forecasts are for solar to become the cheapest source of energy — at least when the sun is shining — in many parts of the world in the 2020s.

Each of these trends — cheaper batteries and cheaper solar electricity — is good on its own, and on the margin will help to reduce our dependence on fossil fuels, with all the geopolitical drawbacks and climate harm they entail. But together, the two cost trends will add up to nothing less than a revolution in the way humankind interacts with the planet and powers civilization.

You see, the two trends reinforce each other. Cheaper batteries mean that cars can switch from gasoline to the electrical grid. But currently, much of the grid is powered by coal. With cheap solar replacing coal at a rapid clip, that will be less and less of an issue. As for solar, its main drawback is intermittency. But with battery costs dropping, innovative manufacturers such as Tesla will be able to make cheap batteries for home electricity use, allowing solar power to run your house 24 hours a day, 365 days a year.

So instead of thinking of solar and batteries as two independent things, we should think of them as one single unified technology package. Solar-plus-batteries is set to begin a dramatic transformation of human civilization. The transformation has already begun, but will really pick up steam during the next decade. That is great news, because cheap energy powers our economy, and because clean energy will help stop climate change.

Of course, opponents of the renewable revolution continue to downplay these remarkable developments. The takeoff of solar-plus-batteries has only begun to ramp up the exponential curve, and market shares are still small. But it has begun, and it doesn’t look like we’re going back.

To contact the author on this story:
Noah Smith at [email protected]

To contact the editor on this story:
James Greiff at [email protected]

Source: http://www.bloombergview.com/articles/2015-04-08/clean-energy-revolution-is-way-ahead-of-schedule

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400% Growth Predicted For China’s Lithium-Ion Automotive Battery Market By 2017

Posted by AGORACOM-JC at 12:18 PM on Monday, February 9th, 2015

Market research firm CCM predicts that the lithium-ion battery market is beginning to enter its golden era in China following high growth of electric car sales.According to CCM data, in 2014 manufacturers in China produced 78,499 EVs (including tiny vehicles), which is 250% more than in 2013. In 2015, sales will grow even faster to 250,000!In such a case, the lithium-ion battery industry should jump by 400% by 2017.

CCM expects it to grow from 4 billion Ah a year to 20 billion Ah a year. Times 3.5 V (cell voltages differences among different chemistries), that would be 70 GWh (twice the size of the Tesla Gigafactory and two times more than world production in 2013).

“This rapid growth is sparking similar growth in demand for power lithium-ion batteries, Chinese EV brand BYD has already encountered difficulties meeting orders due to a shortage of batteries, according to CCM.

Samsung, LG, and Foxconn all invested more than RMB 2 billion (US$325 million) in China’s lithium-ion battery market in 2014, and CCM expects to see similar levels of investment in 2015.

Most domestic Chinese battery manufacturers currently lag behind their competitors in Japan, South Korea, and the US in terms of their ability to manufacture high performing EV batteries, though this gap is narrowing gradually, so there is a large opportunity for international players to gain market share in China’s power lithium-ion battery market in the coming years, the firm suggests.”

Source: http://insideevs.com/400-growth-predicted-for-chinas-lithium-ion-automotive-battery-market-by-2017/

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