Saturday, 18 March 2017

Lithium Race: EV Sales In 2016 Should Scare The Oil Industry, But 2017 Could Be A Death Blow If Tesla Can Deliver.

Brilliant video and analysis from Teslanomics by Ben Sullins. You can find my analysis on far-reaching geopolitical consequences of this Megatrend in the article below and now you can compare the growth of EV sales all over the world. China is leading Lithium Race with 85% rise in electric cars sales in 2016. There were 351,000 electric cars sold, but also 150,000 new electric buses and trucks have hit the road, so the total sales of EVs have surpassed 501,000 in 2016 in China! 

"Maybe you have missed it, but China became the Centre of the Lithium Universe. BYD, the Chinese company backed by Warren Buffett, is the largest EV manufacturer in the world, thus the Chinese companies are producing the largest amount of lithium chemicals for the batteries required to make them. The market is booming and there are currently more than 25 companies making more than 70 models of electric cars in China. Over 500,000 EVs were sold in China last year alone. By comparison, it took GM 7 years to sell 100,000 Chevy Volts since 2009 which was eclipsed by the EV sales by BYD in just the last year!

Still unknown for the mainstream investors, the Chinese companies have taken over supply of the critical commodity powering Energy rEVolution. Lithium is the magic metal at the very heart of China's New Energy Plan. We all are following Tesla with its Gigafactory and the coming tide of electric cars with Tesla Model 3 entering into the mass market production this July. However, there are already more than 70 models of Electric Cars on sale in China. Lithium battery demand is following up the trend and there are Megafactories rising all over China to produce the much-needed lithium batteries with more than $20 Billion dollars in allocated investments.
Demand for batteries is driving lithium market. According to Benchmark Mineral Intelligence, batteries were driving only 22% of the global lithium demand in 2006 but by 2016 this number has jumped to 42%. Now the best electric cars are becoming more affordable and this demand is expected to increase rapidly. Next stage will be coming with the exponential growth of Solar and Wind Energy Generation which is driving the demand for home and utility-scale energy storage systems." Read more.

Energy rEVolution: Who Will Be Left Holding The Bag? Oil And Gas Companies Are Facing Major Technological Disruption.

You can spin a lot of things around in this day and age, you can even try to "Make Coal Clean Again". But once a technology is developed to address the particular problem, the magic of mass production is taking place and costs are going down fast in accordance with Moore's law for chips and "The Learning Curve" laws for the other industries.  Watch the video.

We are at the major bifurcation point for our civilization, Energy rEVolution is unstoppable now. We can produce Renewable Energy cheaper than any other fossil alternatives. And now we can store it and use when we want it with Lithium Energy Storage Technology. You can build some walls to protect some fossils in business, but when Reds are going Green this process is making a truly tectonic geopolitical shift

When China is going full ahead building the new Manufacturing Base of the 4th Industrial rEVolution with its New Energy Plan, the West is better to take notice.We are not just talking here about the largest in the world Solar and Wind generation capacity in China or its largest market for Electric Cars in the world. 

We are talking about Oil becoming less and less important in terms of being like Blood for The Economy when everything just stops without it being pumped through The Economic and Financial System every single day. Suddenly, one society can live without burning it every day just to get around the block. It will have its place in the military, air transportation and chemical industries, but it is not as precious as Blood anymore. 

Now, let's think about the most important subject here. What will happen to all other societies? To those ones which are built all around Oil? When their military power suddenly becomes irrelevant. When they are left with Trillions of dollars in stranded assets glued to Oil. This is the real disruption and asymmetric warfare. Who needs war when you are building Steam Engines just to "Make America Great Again"?

The last insult will come when the best brilliant scientific minds will start following the best technology in the Transfer of The History to China as well. We still have some time to make The Switch, but this time is running out very fast. Who will be left holding the bag with Trillions of dollars worthless stranded assets after this energy rEVolution will claim its victims?

Back Into The Future: Lithium Will Power Us For The Next 50 Years And Then Robots.