Reuters. BYD weld line in Shenzen, China.
As Tony Seba has mentioned before: "Green Energy is green also because it is the colour of money." Lithium Technology is out of the labs and is coming into the mass market phase with electric cars. Tesla in the US has just turned a profitable quarter and another set of record numbers. BYD backed by Warren Buffett is the largest EV maker in the world, moving very fast into the energy storage business and will sell 100,000 EVs this year. For your reference: it took GM 7 years from 2009 to sell 100,000 Chevy Volts. And they are making money already and Reuters reports that BYD profit will rise 84% this year with all R&D and CAPEX allocated to Lithium Megafactories and numerous production facilities all over the world for electric cars, buses and trucks. This Electric rEVolution is the serious business now and the incredible growth of the new lithium majors like Ganfeng Lithium and Tianqi are showing the rapidly changing business landscape in the 21st century. We can have 1,000,000 EVs sold only this year and we are on track to have 2,000,000 EVs on the roads by the year end. It is the lithium catalyst I am talking about: during all our history only just over 1,000,000 EVs were sold before.
"If and when China will ban fuel-burning cars remains the speculation at this moment, but it will change the geopolitical landscape overnight making many Trillions of dollars in assets in the West worthless and some major companies literally shrinking in size within a year or two. We will have more Chinese names at the top of the World's largest companies for sure and size of the Chinese economy will jump reflecting the new growth based on the manufacturing base of the 21st century. This Energy rEVolution will be very fast and brutal to those unprepared. It is time to check your portfolios in order not to get caught in "The Death Spiral" - like Fitch is predicting for the oil companies. And whoever would like to start new trade wars should be thinking twice and long term in advance, like China is doing building secure lithium supply to power new Energy Plan and Electric rEVolution. Read more."
International Lithium and Ganfeng: Major Catalyst For Electric rEVolution And Security Of Lithium Supply.
"We have discussed before the fast changing geopolitical landscape in the world and why New Energy Plan in China can change the balance in our world's economic system just in a few very short years. For more than 100 years oil was our only major source of energy powering the economic growth. Oil means power and power means oil - this sentence can determine the politics of all 20th century. But not anymore. We are just at the tipping point of the major tectonic shift from the centralized energy systems to the distributed electricity generation and its consumption when we want it. Electricity is the most efficient form of energy known to us. Now, thanks to "The Learning Curve", we can produce it very cheap with solar and wind and we can store it very efficiently using lithium batteries. Cheap lithium batteries change everything here. We are in the catalyst stage of moving from 2 to 7000. 2 is the number of batteries in your farther's first remote control, 7000 is the number of lithium batteries in Tesla Model S.
Tesla is making the headlines demonstrating the potential of lithium technology. Elon Musk has proved that electric cars are just better. Here comes the China's New Energy Plan in the picture as the major driving force for The Switch with its state-level military style planning and execution - you can find more details about it in my previous posts.
Two major Chinese companies Ganfeng Lithium and Tianqi are part of this state-level plan to build the Electric rEvolution from top to bottom, including the secure supply chain for the critical metal Lithium which is at the very heart of this technology. This year they have broken "The Old Lithium Big 3" and now we have "The New Lithium Top 5". Albemarle is in the first place and SQM is holding now to the second. Ganfeng Lithium and Tianqi have pushed FMC into the 5th place and are chasing each other between 3rd and 4th. Ganfeng Lithium is a $4.5 Billion MC company and strategic partner of International Lithium. We were very fortunate after two years of due diligence to strike the major deal with Ganfeng for International Lithium in 2011. This business demands a long term planning and stamina just to stay with the game. This year, after 7 years of building our business, we are celebrating with Ganfeng the 5th anniversary International Lithium's IPO. Read more."
"We are talking a lot about Tesla these days and groundbreaking achievements of lithium-based technology for electric cars - now they can drive themselves. I do understand Elon Musk's push for self-driving cars as a much safer option on the road than the majority of drivers, but the ability to produce millions of electric cars is even more important. The self-driving technology has a far-reaching legal and moral issues which our society will have to address in order to fully embrace it. A lot of vested interests will try to kill the whole idea of self-driving cars hitting on the electric ones. The latest report from Fitch on the "Death Spiral" for the Oil industry due to the fast improvements in lithium batteries for electric cars will open the new lines of attacks on "dirty electric cars."
I do hope that Elon Musk can really do everything and deliver Tesla Model 3 next year. But we are not alone, tectonic shift in the geopolitical situation is now driving "The Switch". China is fully charged with its New Energy Plan leaving in the dust firing the last cylinders of the corrupted lobbying institutions in the West. InsideEVs reports from the Center of Lithium Universe and the largest market for electric cars. BYD backed by Warren Buffett has delivered again for the 4th month in a row more than 10,000 EVs sold. The company is on track to sell more than 100,000 EVs in one year! It will be the first one in the world to do so and, for the reference, Tesla will, hopefully, have 80,000 - 90,000 in sales this year. It took GM 7 year to sell 100,000 Chevy Volts from 2009! We are getting to the exponential part of the S-curve for the adoption of EVs now. Read more."
Chinese automaker BYD Co Ltd (1211.HK) (002594.SZ), backed by Warren Buffett's Berkshire Hathaway Inc (BRKa.N), on Sunday said 2016 full-year profit was likely to rise as much as 84.17 percent, as rapid growth of the green car market eases.
The Shenzhen-based manufacturer, which has invested heavily in making electric and hybrid petrol-electric vehicles, forecast a 77.09 percent to 84.17 percent increase in net profit for the year, at 5.0 billion yuan ($737.90 million) to 5.2 billion yuan.
For the first nine months of 2016, BYD reported 3.66 billion yuan in profit, an 86.82 percent increase year-on-year. That compared with the automaker's forecast in August of 83 percent to 91 percent for the period.
BYD reported triple-digit profit growth for the previous four quarters. But its earnings expansion in the first nine months of 2016 slipped below 100 percent as the overall market for green-energy vehicles moderates after government support helped it quadruple last year.
Overall sales of electric and plug-in hybrids in China totaled 289,000 vehicles in January-September, according to China's automakers association, far from its target of 700,000 vehicles for 2016. An association official said Friday that sales were now likely to miss that target.
Analysts said China may struggle to meet that target following the revelation that dozens of companies had been cheating the subsidy system.
(Reporting by Jake Spring and Elias Glenn, editing by Larry King)"