Email Facebook Twitter

Member Info for 1LEO

Member Since: Mon, 27th Jul 2009

Number of Share Chat Posts (all time): 142
Number of Share Chat Posts (last 30 days): 14

Last Posted: Sat 10:39

Post Distribution over the last 30 days

Sat 10:39

The agreement with the two companies gives Tesla access to below-market-rate lithium in exchange for minimum purchase amounts over a five-year period, according to a statement.

The first phase of the battery factory, under construction near Reno, is expected to be completed next year. When the battery factory is fully built out, it will be capable of making 35 gigawatt-hours of battery cells, which is more than all of the current lithium-ion battery plants in the world today combined.

Read more:

Fri 11:57

The big rise will come at 2pm when Tesla announces where it is buying its Lithium from and some one calculates 50,000 tons per year times £7,000 plus all the other customers i.e. Ford etc
Fri 11:52

The big rise will come at 2pm when Tesla announces where it is buying its Lithium from and some one calculates 50,000 tons per year times £7,000 plus all the other customers i.e. Ford etc.
Wed 07:42

You are all youngsters I'm in my 80s and expect to travel the world with my winnings next year.
18 Aug '15

It’s headline-grabbing stuff - Elon Musk says that his Tesla Corporation (NASDAQ:TSLA) aims to accelerate technological and market development by up to ten years in the roll-out of electric cars.

The cars will be powered by lithium batteries built in Tesla’s facility in Nevada, which is known colloquially as the “gigafactory” and is costing a cool US$5bn.

One question remains: where will all the lithium come from?

Because it’s not just Tesla advancing lithium-powered battery technologies even though it does get the most headlines.

Duke Energy is now replacing the lead-acid batteries at its 36 megawatt (Mw) energy storage facility in west Texas. The new batteries are exclusively lithium.

And the list goes on.

“Every manufacturer in Europe is bringing out electric and hybrid vehicles,” says Steve Kesler, the chief executive of European Lithium, a company that’s planning to list on the Aim market of the London Stock Exchange shortly.

He’s clear that there is going to be a huge spike in demand when Tesla and its ilk start to manufacture in earnest and that the spike is coming sooner rather than later.

Supply will almost certainly struggle to keep up.

To support that view, Kesler cites recent analysis conducted by Canadian research house Stormcrow Capital, which argued that in order for lithium supply to keep up with projected demand there will need to be a new mine constructed every year.

“Overall lithium demand will more than double from present levels through 2025,” says Stormcrow.

No wonder that Steve Kesler is excited.

“We believe that lithium really is the commodity for the future,” he says. “It really is a seismic shift.”

Over in Canada, somewhat closer to the Tesla action, Guy Bourassa of Nemaska Lithium (TSX:NMX) agrees.

“We’re confident that the market’s going to grow,” he says. “And the capacity of existing producers to increase production is nil.”

New projects will eventually come on stream, but it will take time. Only one will be ready this year: Orocobre’s (TSX:ORL) Olaroz and even that’s had its issues.

Aside from Olaroz, new supply is limited, so those projects that are more advanced, like Nemaska’s Whabouchi property in Quebec, look to be in pole position when Tesla suddenly comes into the market with its huge appetite for supply.

The likelihood is that Tesla and its peers will help Nemaska and other lithium hopefuls with up-front capital in return for certainty of supply, and that dynamic means that the usual market uncertainty about any given company’s ability to secure development funding are greatly mitigated.

At UK broking house SP Angel, Bonnie Hughes points out that Tesla has undertaken to source all of its raw materials from North America.

That has its good and bad points as far as global suppliers are concerned, but itR

Sign up for Live Prices
Top Recommended
Hot Chat Topics
Top recommended posters in the last 30 days
Share Price Spacerriddler431 
Share Price SpacerN902420 
Share Price SpacerBarksy1399 
Share Price Spacersawadee339 
Share Price Spacertidd83334 
Share Price SpacerBladderman308 
Share Price Spacersmokinjoe304 
Share Price Spacersurprised298 

Member Login

Forgotten your password?


Don't have an account? Click here to Register Free!

Home  |  Contact Us  |  About Us  |  Careers  |  Advertise with Us  |  Sitemap  |  Terms & Conditions  |  Cookies  |  Privacy

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.