Lithium market: GS Yuasa venture to build lithium battery plant TNR.v, CZX.v, LMR.v, RM.v, SQM, FMC, ROC, HEV, AONE, WLC.v, CLQ.v, ORE.ax, F, NSANY, B

Japanese and Chinese companies are aggressively making stakes in the new economy and Green Mobility: Nissan Leaf relies on NEC Lithium batteries and GS Yuasa will supply Mitsubishi. Price competition was opened by very aggressive Nissan Leaf pricing 25000 USD after all rebates in USA. More competition in electric car place and in battery supply chain will bring green mobility into the mass market stage, when Lithium supply will be a very crucial element of success. Magic number to remember is 1% - it is the cost of Lithium metal itself in the end price of Lithium battery. Doubling of price of Lithium Carbonate can become reality very fast with battery and electric car makers rushing to secure access to the strategic commodity and it will not affect the end user - buyer of the EVs.

"Lithium ABC: Rick Mills has put together a very good overview of the Lithium sector, production cycles and basic economics for Lithium Brines and Hard Rock Lithium mining. For us it is interesting to use his check lists to evaluate properties of International Lithium Corp. in Lithium Brines and Hard Rock Lithium. Mariana project in Argentina fits very well into described model for Lithium Brine Deposit. Company has put in a new presentation its own exploration models for Mariana Salar in Argentina and its Brine Lithium projects in Nevada."

Reuters:

GS Yuasa venture to build lithium battery plant
Wed Apr 14, 2010 2:33pm IST

TOKYO, April 14 (Reuters) - Japan's GS Yuasa Corp (6674.T: Quote, Profile, Research) said its joint venture with Mitsubishi Motors Corp (7211.T: Quote, Profile, Research) would spend 37.5 billion yen ($400 million) to build its third lithium ion battery plant in Japan, anticipating growing demand for electric vehicles.
The move by the venture between GS Yuasa -- the world's third-largest car battery maker -- Mitsubishi Motors and trading house Mitsubishi Corp (8058.T: Quote, Profile, Research) will boost its annual output capacity by the equivalent of batteries for 50,000 Mitsubishi Motors' i-MiEV electric vehicles.
That, along with other planned investments, will bring the venture's total annual output capacity to the equivalent of batteries for 67,800 i-MiEVs a year by 2012, from the current 2,300 vehicles.
The venture, Lithium Energy Japan, is 51 percent owned by GS Yuasa, with Mitsubishi Corp holding 34 percent and Mitsubishi Motors 15 percent.
While sceptics abound, major automakers are developing battery-run cars for use mainly in urban areas, to meet stricter emissions and mileage regulations being introduced around the world.
Mitsubishi Motors, to which the joint venture is supplying lithium ion batteries, has raised its annual sales target for the i-MiEV by 10,000 vehicles to more than 40,000 by 2012.
Nissan Motor Co (7201.T: Quote, Profile, Research) will start selling its Leaf electric vehicle by the end of this year. [ID:nTOE62T038] ($1=93.59 Yen) (Reporting by Nobuhiro Kubo; Editing by Chris Gallagher)"