I would like to share with you the very interesting summary from Seeking Apha on this subject. It confirms my personal observations of the investment and M&A trends in our Lithium industry today. I will share with you few quotes and links which will help you to understand International Lithium strategy and, what is very important, how our strategic partner Ganfeng Lithium sees this megatrends from the ground of the world's biggest auto market in the world in China.
"Mr. Kirill Klip, President, International Lithium Corp. comments, "The recent acquisition of the Taca Taca copper deposit by First Quantum Minerals confirms our strategic view that mining investment in Argentina will increase. Both Taca Taca and Mariana are located in Salta, Argentina, a mining friendly province and heart of the South American Lithium Triangle. Both Taca Taca and Mariana have rail and road access, in addition infrastructure development work at nearby Taca Taca will also benefit the Mariana project.
Now that we have secured 100% of the mineral rights to the project for our J/V with Ganfeng Lithium, an accelerated program to develop a pilot plant can commence. Subsequent feasibility studies will allow us to use Ganfeng Lithium's technological expertise and research facilities that we anticipate will reduce costs and improve efficiencies. The recently signed trade agreement between China and Argentina provides state-level support for our joint venture. Together we strive to become a primary source of lithium to meet the increasing demand of our strategic partner Ganfeng Lithium."
"Mr. Kirill Klip, President, International Lithium Corp. comments, "We are excited to spearhead this international collaboration and program that sets a precedent for sourcing metals that are imperative to the advancement of mobile devices, electric vehicles and alternative energy. The demand for Lithium is continually on the rise and there are shortage concerns which could impede on the growth of the green technology sector worldwide. The Irish government has taken this risk very seriously and pledged to facilitate the advancement of lithium production as part of an initiative to improve strategic metal supply chains. Together with Ganfeng Lithium, ILC has the opportunity to be part of this development and we are optimistic that we have a new potential source for the lithium battery supply chain".
Mr. Wang Xiaoshen, Vice Chairman/ VP, Ganfeng Lithium Corp. notes, "Recent news that corporations such as Tesla and Panasonic are making significant commitments to build gigafactory battery plants will significantly impact the demand for Lithium. Similarly the Chinese market will become increasingly more important to companies like Tesla in the near future. These two reasons make BLL an ideal prospect for the lithium industry."
Elon Musk To Occupy Mars, But First He Opens The Doors For Tesla To The World's Biggest Auto market.
Elon Musk moves very fast and now the doors to the world's biggest auto market are wild open. Superchargers will make Tesla Model S capable to compete with ICE cars and Chinese government will do the rest. Air pollution is the nation wide issue and now government in China has announced the war on pollution. Electric cars are the very big part of this battle plan. Now one thousand fast chargers are being built in Beijing along and all new residential development must be wired for the electric cars. The new mandate is in place calling for 30% of all state owned cars to be electric.
China has escalated electric cars to the status of strategic industry and is building the supply chain of Strategic Commodities for the electric cars, mobile devices and alternative energy. LG Chem has announced its own Megafactory in China to produce 100,000 lithium batteries for electric cars per year.
International Lithium becomes the part of the vertically integrated lithium business in the huge market in China with its strategic partner Ganfeng Lithium.
International Lithium: Presentation Of Our Strategic Partner - Ganfeng Lithium May 2014 from Kirill Klip
As we have discussed here numerous times, China moves electric cars with its state-level plan into the strategic industry status. While West is still looking what is wrong with Tesla Motors and Tesla Model S Chinese companies are searching the globe and buying the best deposits of Lithium, Copper and REE. These will be the materials driving the next industrial rEvolution - electrification of our transportation systems. High-speed railway network will solve the problem of mass transit in the future when Oil will be gone. China is building this network by thousands of miles per year and it is going to reach .... Singapore. Electric cars will solve the problem of mobility in the highly populated megalopolises.
Elon Musk goes Open Source with electric cars now and Tesla Motors patents are available for all. It is not just charity, but rather carefully calculated move. And it is not the attempt to diminish our leader-in-chief altruistic incentives behind this move. Reality is that Elon Musk targets the Chinese market now with Tesla Model S and what is more important - with the new mass market model of electric car from Tesla Motors. It would be re-engineered in any case in China, but now if you can make that car cheap and in mass numbers, your strong partners in Asia will help Tesla Motors to fight counterfeit and people will not by the sub par quality.
Can I put the name Foxconn again here?