Friday, September 17, 2010

Warren Buffett: China's BYD buys stake in Tibetan lithium miner TNR.v, CZX.v, RM.v, LIT, LIT.v, TSLA, WLC.v, LI.v,,,,, RES.v, NSANY, RNO,, FMC, SQM, ROC

  Now Chinese BYD  backed by Warren Buffett moves to secure supply of Lithium. It looks like every major lithium end user would like to participate in Lithium mining company to ensure supply of this strategic commodity. As you can guess, there is not so many Lithium developers left to chose from.

"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."


(AP) – 15 hours ago

SHANGHAI — Chinese battery and autos maker BYD Co. said Friday it has agreed to buy an 18 percent stake in a Tibetan-based lithium and boron miner, moving to secure a strategically vital asset for its future growth.

BYD will pay 201.2 million yuan ($30 million) for its stake in Tibet Shigatse Zhabuye Lithium High-Tech Co., with Tibet Jinhao Investment Co. taking a 4 percent stake and BYD 18 percent, BYD said in a statement to the Hong Kong Stock Exchange.

Tibet Shigatse Zhabuye Lithium, based in Shigatse, Tibet, is a miner of lithium, boron and salts, it said. It has assets worth 431 million yuan ($64.3 million), the statement said.

The acquisition is aimed at improving the competitiveness of BYD's rechargeable battery business, it said.

BYD, which stands for Build Your Dreams, has backing from billionaire investor Warren Buffett, whose MidAmerican Energy Holdings Co., the utility division of his Omaha, Neb.-based flagship Berkshire Hathaway, has a 9.9 percent stake in the Hong Kong-traded company.

The company started out as a battery maker and has successfully branched into automaking, launching mass production of a plug-in hybrid electric vehicle — the F3DM — that's sold in China and can be charged off a standard home outlet."

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