Sunday, 22 October 2017

The Switch And Lithium Race: Tesla Strikes Deal With Shanghai To Build Gigafactory In China.



We have a confirmation from Wall Street Journal that Tesla has reached an agreement to set up its own manufacturing plant in Shanghai. A new push for Electrification of Transportation which is happening in China is making this particular timing very important for Tesla: now Tesla seems to be allowed to have its "own" Gigafactory in China, not just JV with a local partner. Transfer of the best EV technology will be the major concern for Elon Musk, but I think that it is really the price to be paid for the access to largest EV and auto markets in the world in China. 

Transfer of technology cannot be prevented anymore. Now Elon Musk has a chance to conquer the very significant part of upper range market for electric cars in China. Tesla's electric cars are the best in their class and now China can become the largest market for Tesla. For China, it is just another piece of the New Energy Plan coming into its place: Lithium supply chains are already under control, Lithium batteries Megafactories are mushrooming all over China and now the best technology for electric cars from Tesla will become available very soon. We are entering the new era of the mass market for electric cars and The Switch when millions of new customers are switching to electric cars becomes a reality.

Lithium is the magic metal at the very heart of this Energy rEVolution. Our starting point for electric cars is just over 1% of total auto sales in the world against only 200,000 tonnes of LCE produced in 2016. International Lithium JVs with Ganfeng Lithium provide an entry point in the vertically integrated lithium business. The dramatic increase in demand for lithium will require accelerated production from all known reserves of lithium and new resources will need to be found and put into production, this being crucial to the Energy rEVolution.

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Chasing Tesla: Who Controls The Supply Chain For The Energy rEVolution - 20 Lithium Megafactories Are Coming.





Benchmark Mineral Intelligence has launched another blockbuster event covering the Lithium rEVolution - Cathodes 2017. Simon Moores and his team are the best in connecting the rapid growth of Electric Cars and Energy Storage industries with in-depth analysis of supply chains which are making this Energy rEVolution happening. Tesla has brought the earthquake to the auto industry, Elon Musk is "thinking hard about new Gigafactories number 3, 4, 5 and 6"; but there are already another 19 are in the making. Read more.



The Switch And Lithium Race: Tesla Has Reached An Accord With Shanghai To Explore Production In China.




It is happening! Tesla comes to China, now the security of lithium supply will be in the headlines for the rest of the summer. We are at the tipping point for the lithium industry, the supply is not there to accommodate the exponential growth in EVs and Energy Storage space. Read more.





Wall Street Journal:

Tesla Strikes Deal With Shanghai to Build Factory in China




"Arrangement could enable electric-car maker to slash production costs, but would still likely incur 25% import tariff



Electric-car maker Tesla Inc. has reached an agreement to set up its own manufacturing facility in Shanghai, according to people briefed on the plan, a move that could help it gain traction in China’s fast-growing EV market..."