Sunday, August 29, 2010

Lithium Drive: A Chinese Truck Maker’s Electric Dreams TNR.v, CZX.v, RM.v, TSLA, LIT, LIT.v, LI.v, WLC.v, CLQ.v, HEV, AONE, SQM, FMC, BYDDY, NSANY, F, FCX, RTP, BHP

  China has the strength of allocating all necessary resources in order to achieve a clearly defined goal: to leapfrog all of the 20th century technology which is based on Oil and move straight into the future of Electric Transportation system, which will support its economic growth, internal consumption and low cost manufacturing base.
  We expect Chinese companies to be active with M&A activity in our lithium junior mining sector this Fall.

"China to Invest Billions in Electric and Hybrid Cars. Nothing will be left to a chance in this methodical execution of state-level plan in China: transformation of the country's transportation system into the base of 21st century clean tech industrial revolution to further power its rise. China has already surpassed Japan as a second largest economy in the world and it is the largest auto market now.

Now you can see a few details of state level planing in China: they have capital to invest with reserves over Two Trillion US Dollars, thousands of engineers with annual salaries compared to monthly ones in the West and, the most important, political will to implement the far going geopolitical plan to get rid off the Oil Hook. We are out of the politics and our idea is to define Macro trends and position ourselves early enough to capitalise on it.

The last piece in this game against Peak Oil (or fading American domination connected to the control of Oil in the world) is to have secure supply of strategic commodities for this technological advance. Here China already controls 97% of market in Rare Earth Elements and now it is time to build up position in Lithium. If in the beginning of Lithium Bull last year mostly Japanese companies were very active in junior mining space where small companies are controlling resources, now more and more reports from the juniors suggesting that Chinese companies are on the road."


What’s behind a relatively unknown Chinese truck and SUV manufacturer called Anhui Jianghuai Automobile Co.’s huge ambitions to get into electric cars?

Anhui Jianghuai AutomobileJianghuai Auto, known also as JAC Motors, announced Tuesday it plans to invest around 30 billion yuan ($4.43 billion) in new energy cars via a local joint venture. The new company, set up with Tianjin Zhengdao Stock Investment & Management Co., plans to build 1 million new-energy vehicles over a period of eight years after building a plant, Jianghuai Auto said in a statement. The joint venture has registered capital of 700 million yuan ($103.4 million).

Jianghuai Auto’s impending foray into “new-energy” vehicles, such as gasoline-electric hybrids and all-electric battery cars, reflects a looming battle among Chinese auto makers over government money, as they jockey to become one out of “three to five” new-energy auto makers China’s central government is aiming to foster, industry executives say.

According to a report last week by the Shanghai Securities News newspaper, China plans to invest more than 100 billion yuan over the next 10 years and is aiming to produce and sell 15 million energy-efficient vehicles annually by 2020. Under the plan formulated by the Ministry of Industry and Information Technology, China will have three to five major manufacturers of new energy cars and two to three internationally competitive parts suppliers, including battery makers, the report said.

The ministry will finalize its plan and seek approval from the Chinese cabinet by the end of this month, the state-run newspaper said, citing unnamed sources.

Another less obvious motive for Jianghuai Auto to invest so hugely in new-energy vehicles could be to signal to the government it has no plans to merge with Chery Automobile Co., also in Anhui province. Auto-industry insiders have said the government wants Jianghuai Auto with its strength in trucks and Chery in passenger cars to merge and form a more comprehensive auto maker as part of the government’s push to consolidate China’s fragmented auto industry with more than 80 registered auto makers.

To indicate its reluctance to merge with Chery, Jianghuai Auto recently began focusing on coming up with a more complete lineup of passenger cars. Its latest move to invest in new-energy vehicles can be interpreted as yet another signal of unwillingness to merge with Chery, which also has made a sizable investment recently to set up a new-energy car unit.

Jianghuai Auto didn’t immediately return a request for comment.

– Norihiko Shirouzu and Shen Hong

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