Whether you follow energy metals or just read the news, you can't help but see the ever growing news about lithium related products, they are dominating headlines. The driving force, without a doubt, is what has been dubbed "the battery revolution." Battery factories are in the works and the one grabbing the most headlines is Tesla's Reno, Nevada, gigafactory.
Tesla and Elon Musk
Elon Musk had us all on the edge of our seats in early April with a statement that on the 30th of that month, a new groundbreaking product would be announced. And it certainly was groundbreaking. The Tesla Powerwall is an energy storage battery that is powering the renewable energy boom and what's in each of these batteries? Lithium.
"As you can see, Panasonic continues to dominate the market — with Tesla’s strong showing being a major factor. The company supplies Volkswagen as well, though, it should be remembered — giving it some growth potential beyond the Tesla association."
According to Benchmark Mineral Intelligence, the lithium battery megafactories for electric vehicles and other storage are coming and production is set to triple by 2020. Visual Capitalist has prepared the following chart. Please click chart for full information.
Headlines that dominated industry news:
"Tesla is already building a 5-million-square-foot battery factory. It's not big enough. That was the message from Tesla Chief Executive Officer Elon Musk this week while discussing, for the first time, the early response to his new product line of storage batteries designed for use in homes and businesses. The numbers are impressive. In the first few days of reservations since the battery announcement on April 30, Tesla took orders worth roughly $800 million in potential revenue, according to figures compiled by Bloomberg Business."
"Five hundred thousand electric vehicles per year, a steady supply of household energy storage devices to be coupled with residential solar, and a doubling of global lithium ion battery production from current levels. That's the reality the Gigafactory now under construction by Tesla Motors promises to usher in when it reaches full-scale production in 2020. As demonstrated by the company's nearly $27 billion market cap, investors overwhelmingly approve of the growth plans."
"BYD Co., the Chinese carmaker partially owned by Warren Buffett’s Berkshire Hathaway Inc., said it expects to double deliveries of energy-storage products this year amid rising global demand."
“There’s no way that we can possibly satisfy this demand this year,” Musk said. “We’re basically sold out through the middle of next year, in the first week.”
Since energy storage and electric car batteries have been dominating the headlines, it's easy to forget that lithium-ion batteries are also powering our every day devices. Below is chart based on data from signumBOX that show the amount of lithium used in each device.
Peter Epstein - In this article I present a bullish thesis on the demand for lithium, but not by naming the usual suspects of batteries & large scale grid storage.
Early adopters of new technologies propelling major economic revolutions are historically the ones that stand to benefit from it the most.
Lithium brine deposits typically outperform hard rock and clay lithium sources on cost, sustainability and permitting. This gap is becoming more pronounced when we take into account technological advancements in brine processing.
Brought to you by Dajin Resources