Sunday, July 25, 2010

China's Electric Car Revolution will drive Lithium market. TNR.v, CZX.v, LIT.v, TSLA, RM.v, LI.v, LAT.v, WLC.v, CLQ.v, HEV, AONE, BYDDY, NSANY, F, GM,

This presentation from Booz&C0 provides more insight into the Chinese plan to Electrify their transportation system. As we have wrote before, please, make no mistake it is a long term plan with a serious geopolitical implications, they have committed resources and executing it now step by step.

The Chinese Electric Bike SurpriseImage by jurvetson via Flickr

"Main message for us from Shai Agassi this time is that "China gets it". "Ones China does it - it is bound to happen everywhere" We expect now Chinese companies to be more aggressive in Argentina and Chile making M&A deals to get access to Lithium Brine developers. Japanese and Koreans were first to step in, but competition for supply of strategic resources will be intensifying now between Asian Tigers.

"We have another hint into the recent M&A activity in Lithium space. Talison deal with Salares Lithium confirms real Chinese appetite for Lithium. Now it is time for Lithium Supply - China already controls 97% of Rare Earths market. Lithium output will be increased fivefold in Chinese Lithium province, but the real news is below from Reuters - it is only half of previously expected output and now Chinese companies are on the shopping spree among lithium developers. Who will be at the boardroom table next - only a few lithium brines plays are left without J/V partners and we are following here two of them: International Lithium and Rodinia Lithium. We expect M&A activity in lithium space to be continued during this summer months."

Slideshare: China's Electric Car Revolution

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