Monday, 26 September 2016

Lithium 2.0: "New Lithium Top 5" Consolidation And Security Of Supply: FT "China's Tianqi Moves On Chile's SQM."

  


  FT reports that further round of competition for the security of lithium supply is driving the new wave of consolidation among our "New Lithium Top 5". With all political troubles in Chile Argentina is rising to the top lithium destination in the world now. Chinese Tianqi and Ganfeng were competing for the stake in SQM. Now we can see that Tianqi will pay 51% premium to get 2.6% for more than $200 million dollars in SQM. This move opens the doors to acquire more than 20% stake in SQM. I will be following on more details of this deal.

"Now you can better understand why the security for lithium supply becomes crucial for the industry leaders. Ganfeng Lithium and Tianqi have made it to the "New Lithium Top 5" this year and even pushed FMC down in the 5th place, according to Joe Lowry. Tianqi controls with Albemarle Talison  Lithium - a source of lithium raw material from hard rock mining in Australia. Now with Tianqi front running for the 23% stake at SQM - a source of lithium raw material from brine in Chile, we will have a new round of competition for the security of lithium supply. Reflecting on its political problems in Chile SQM moves to Argentina in J/V with Lithium Americas and Albemarle has just announced plans for the lithium exploration in Argentina. 
  International Lithium is building the vertically integrated lithium business with $4.5 Billion market cap giant from China Ganfeng Lithium, which is financing J/V operations in Argentina and Ireland. Below you can find more links on the Lithium Battery and raw materials space to make your own conclusions."


Security Of Lithium Supply: Battery Maker Helping Power China Electric Car Boom Plans IPO.

 


  "While we are all (apart from short sellers) enjoying the news coming out from Tesla about its Gigafactory progress the real Lithium Race and cut-throat competition are happening in China. Warren Buffett's BYD is going after Panasonic with its aggressive plans for lithium battery Megafactories all over the world and now Bloomberg reports that CATL is going after BYD. 
  This competition will bring the prices for lithium batteries down to the Holy Grail for electric cars of $100 per KWh. Then battery for Tesla Model 3 or GM Bolt will be costing just $6k and we can start seriously talking about all cars becoming electric. We will have now the entry into the mass market for EVs with the first two electric cars with over 200 miles range and priced under 40k: GM Bolt and Tesla Model 3. Next step we can talk about my magic formula for all cars to become electric 20/200: when $20k buys you BMW 2 series type electric car with 200 miles range.
  Even without this coming lower prices for the electric cars based on mass volume production of lithium batteries we are pushing 1,000,000 sales of EVs this year alone already! Bloomberg provides the new insight into Lithium Battery market and I will have to update a lot of numbers in my Lithium 2.0 Launch, starting with Tesla which now will produce at Gigafactory 1 50 GWh of lithium batteries already in 2018 and 150 GWh by 2022!
  Now you can better understand why the security for lithium supply becomes crucial for the industry leaders. Ganfeng Lithium and Tianqi have made it to the "New Lithium Top 5" this year and even pushed FMC down in the 5th place, according to Joe Lowry. Tianqi controls with Albemarle Talison  Lithium - a source of lithium raw material from hard rock mining in Australia. Now with Tianqi front running for the 23% stake at SQM - a source of lithium raw material from brine in Chile, we will have a new round of competition for the security of lithium supply. Reflecting on its political problems in Chile SQM moves to Argentina in J/V with Lithium Americas and Albemarle has just announced plans for the lithium exploration in Argentina. 
  International Lithium is building the vertically integrated lithium business with $4.5 Billion market cap giant from China Ganfeng Lithium, which is financing J/V operations in Argentina and Ireland. Below you can find more links on the Lithium Battery and raw materials space to make your own conclusions. Read more."








"The New Lithium Top 5": EV Race At Ludicrous Speed - 200 Companies Are Developing 4,000 Models Of Electric Cars In China.






  "People are still choking up when I casually drop my line that there are 25 companies which are making 51 models of electric cars in China right now. Bloomberg is writing about another EV maker from Japan nobody-knows-about, but the real Lithium Bomb is coming with the line that around 200 companies are developing estimated 4,000 models of electric cars in China now!
  Should we all check together the lithium demand again? You can find the links below with more information about Tesla Gigafactory 1 and another dozen of Lithium Megafactories  all over the world. I was very cautiously pointing out to the 17 start-ups in China started in 2015 alone and trying to make lithium batteries before.  Bloomberg has brought us all on another page of understanding of this state-level crafted and carefully planned military operation called New Energy in China. Should we start talking about rumored 500 Lithium Batteries factories in China rising up right now?
   In our Lithium Universe, according to Robert Baylis,  Albemarle is number 1 getting 25% after its latest deal in China with Jiangli. SQM is struggling to hold the 2nd place with 19%, with all its political problems.  FMC was left behind by Tianqi now with 16% claiming place number 3 and announcing the End of "Old Big 3". Ganfeng Lithium is challenging FMC as well and they both are sharing places number 4 and 5 in the "New Lithium Top 5". International lithium is building the vertically integrated lithium business with $4.5 billion giant from China. Ganfeng Lithium is a strategic partner of ILC and financing our J/V projects in Argentina and Ireland.
  Joe Lowry has pointed out that this recent move by Albemarle in China is expanding its margin, but not increasing the amount of LCE produced. I am following the comments on this chart below from Robert Baylis as well. Read more."





Robert Baylis.



Update September 5th, 2016:

Thank you, Joe, for your comments!




Copyright Global Lithium LLC, used with permission.



FT:


China’s Tianqi Lithium makes move for Chile’s SQM




Seeking Alpha:


China’s Tianqi Lithium to invest more than $200M in Chile’s SQM


Sociedad Quimica y Minera (SQM +5.3%) pops higher at the open as China's Tianqi Lithium says it plans to invest ~$209M for a 2.6% stake for the Chilean company, in a deal that could pave the way for a larger stake in one of the world’s largest producers of the battery material.
Tianqi says it will buy shares for $38 each from SailtingStone Capital Partners, which currently holds 20% of SQM's NYSE-listed shares.
Tianqi reportedly already has signed a non-binding offer to bid for a 23% stake in SQM."