Powered By Lithium: Elon Musk - Tesla Gets Infinite Mile Warranty. $TSLA $ILC.v $TNR.v $LIT

Kirill Klip.:

Powered By Lithium: Elon Musk - Tesla Gets Infinite Mile Warranty.

  Elon Musk disrupts auto-making industry again and will make a lot of boardrooms unhappy next week. Electric car lithium technology is the game changer for our mobility, it is not just about our ability to Dump The Pump, it is about the totally different business model. As you know, all auto-makers are making money on the car maintenance and spare parts. Now this part of the industry will be under to cost scrutiny as well.

Lithium Batteries Gigafactory: Why Morgan Stanley Is Betting That Tesla Will Kill Your Power Company

  

  "Morgan Stanley is very vocal about the coming disruption to trillion dollar industries. Cheaper lithium batteries will enable not only mass market for electric cars, but the distributed power generation. Wind and solar power can be used with the existing grid. Every household potentially becomes the power plant and you can use this power for your own electric car.
  China is the leading wind and solar power generation country in the world now and moving fast to secure the supply for strategic commodities for this green economy: Lithium and REE. Read more."

Elon Musk With Tesla Gigafactory Starts The Race To Secure Supply Of Lithium Batteries And Lithium.

International Lithium Presentation May 2014 from Kirill Klip

 "I would like to share with you the very interesting summary from  Seeking Apha on this subject. It confirms my personal observations of the investment and M&A trends in our Lithium industry today. I will share with you few quotes and links which will help you to understand International Lithium strategy and, what is very important, how our strategic partner Ganfeng Lithium sees this megatrends from the ground of the world's biggest auto market in the world in China. Read more"

Tesla Motors:

August 15, 2014

INFINITE MILE WARRANTY

By Elon Musk, CEO

The Tesla Model S drive unit warranty has been increased to match that of the battery pack. That means the 85 kWh Model S, our most popular model by far, now has an 8 year, infinite mile warranty on both the battery pack and drive unit. There is also no limit on the number of owners during the warranty period.

Moreover, the warranty extension will apply retroactively to all Model S vehicles ever produced. In hindsight, this should have been our policy from the beginning of the Model S program. If we truly believe that electric motors are fundamentally more reliable than gasoline engines, with far fewer moving parts and no oily residue or combustion byproducts to gum up the works, then our warranty policy should reflect that.

To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.

– Elon"

Please Note our Legal Disclaimer on the Blog, including, but Not limited to:

There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.

We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.  

Lithium Batteries Gigafactory: Why Morgan Stanley Is Betting That Tesla Will Kill Your Power Company $TSLA $ILC.v $TNR.v $LIT

Kirill Klip:

Lithium Batteries Gigafactory: Why Morgan Stanley Is Betting That Tesla Will Kill Your Power Company

  

  Morgan Stanley is very vocal about the coming disruption to trillion dollar industries. Cheaper lithium batteries will enable not only mass market for electric cars, but the distributed power generation. Wind and solar power can be used with the existing grid. Every household potentially becomes the power plant and you can use this power for your own electric car. 

  China is the leading wind and solar power generation country in the world now and moving fast to secure the supply for strategic commodities for this green economy: Lithium and REE.

Elon Musk With Tesla Gigafactory Starts The Race To Secure Supply Of Lithium Batteries And Lithium.

International Lithium Presentation May 2014 from Kirill Klip

 "I would like to share with you the very interesting summary from  Seeking Apha on this subject. It confirms my personal observations of the investment and M&A trends in our Lithium industry today. I will share with you few quotes and links which will help you to understand International Lithium strategy and, what is very important, how our strategic partner Ganfeng Lithium sees this megatrends from the ground of the world's biggest auto market in the world in China. Read more"

Powered by Lithium: Clean Electric Cars - Renewables to Get Most of $7.7 Trillion Power Investments

Is Tesla, Apple and Foxconn A Match Made In Heaven To Make Electric Apple iCar Under $15k?

Where On Earth All The Lithium Will Come From?

Motherboard:

Why Morgan Stanley Is Betting That Tesla Will Kill Your Power Company

"ENERGY STORAGE, WHEN COMBINED WITH SOLAR POWER, COULD DISRUPT UTILITIES IN THE US AND EUROPE TO THE EXTENT CUSTOMERS MOVE TO AN OFF-GRID APPROACH"

There's a reason that power companies are attacking rooftop solar across the nation: They see those silicon panels as nothing short of an existential threat. As the cost of solar continues to fall, and more people opt for the distributed power offered by solar, there will be less demand for big power plants and the utilities that operate them. And one major investment giant has now released three separate reports arguing that Tesla Motors is going to help kill power companies off altogether. 

Earlier this year, Morgan Stanley stirred up controversy when it released a reportthat suggested that the increasing viability of consumer solar, paired with better battery technology—that allows people to generate, and store, their own electricity—could send the decades-old utility industry into a death spiral. Then, the firm released another one, further emphasizing the points made in the first. Now, it's tripling down on the idea with yet another report that spells out how Tesla and home solar will "disrupt" utilities. 

“There may be a 'tipping point' that causes customers to seek an off-grid approach," the March report argued. "The more customers move to solar, the [more the] remaining utility customers' bills will rise, creating even further 'headroom' for Tesla’s off-grid approach.”

Yes, Tesla Motors, everyone's favorite electric car company. And that's where the controversy comes in. Morgan Stanley breathlessly pegged Tesla as “the most important auto company in the world" in part because its electric car business was pushing it to develop better energy storage technology, and then mass manufacture said batteries. That's exactly what Tesla CEO Elon Musk and company will be doing at  its forthcoming Gigafactory, which it is building in the Southwest with Panasonic. 

With the new manufacturing facility, Morgan Stanley reasons, Tesla stands to double its business (adding another $2 billion in revenue) by selling the lithium ion batteries it typically ships under the hood of a Model S to homeowners with solar panels, too. If consumers can store energy the panels generate during the day for use at night, it would ostensibly render the need for utilities to pipe in faraway power—and their electric bills—obsolete. Read more on Motherboard."

Please Note our Legal Disclaimer on the Blog, including, but Not limited to:

There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.

We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.  

Elon Musk With Tesla Gigafactory Starts The Race To Secure Supply Of Lithium Batteries And Lithium.

Kirill Klip.:

Elon Musk With Tesla Gigafactory Starts The Race To Secure Supply Of Lithium Batteries And Lithium.

  

  I would like to share with you the very interesting summary from  Seeking Apha on this subject. It confirms my personal observations of the investment and M&A trends in our Lithium industry today. I will share with you few quotes and links which will help you to understand International Lithium strategy and, what is very important, how our strategic partner Ganfeng Lithium sees this megatrends from the ground of the world's biggest auto market in the world in China.

International Lithium Corp. Completes Payments on Mariana Lithium Brine Project, Argentina.

"Mr. Kirill Klip, President, International Lithium Corp. comments, "The recent acquisition of the Taca Taca copper deposit by First Quantum Minerals confirms our strategic view that mining investment in Argentina will increase. Both Taca Taca and Mariana are located in Salta, Argentina, a mining friendly province and heart of the South American Lithium Triangle. Both Taca Taca and Mariana have rail and road access, in addition infrastructure development work at nearby Taca Taca will also benefit the Mariana project.

Now that we have secured 100% of the mineral rights to the project for our J/V with Ganfeng Lithium, an accelerated program to develop a pilot plant can commence. Subsequent feasibility studies will allow us to use Ganfeng Lithium's technological expertise and research facilities that we anticipate will reduce costs and improve efficiencies. The recently signed trade agreement between China and Argentina provides state-level support for our joint venture. Together we strive to become a primary source of lithium to meet the increasing demand of our strategic partner Ganfeng Lithium."

Mr. Wang Xiaoshen, Vice Chairman/VP, Ganfeng Lithium Corp. notes," The Mariana project has a high Potasium-Lithium ratio that gives the project a potentially high credit from the Potasium. This will make the cost of the Lithium resource very competitive. We believe this project will have a bright future considering the fast growing lithium demand for electric vehicles and plug-in hybrid electric vehicles ."

International Lithium and Ganfeng Lithium Move to Advance the Blackstairs Lithium Project, Ireland.

"Mr. Kirill Klip, President, International Lithium Corp. comments, "We are excited to spearhead this international collaboration and program that sets a precedent for sourcing metals that are imperative to the advancement of mobile devices, electric vehicles and alternative energy. The demand for Lithium is continually on the rise and there are shortage concerns which could impede on the growth of the green technology sector worldwide. The Irish government has taken this risk very seriously and pledged to facilitate the advancement of lithium production as part of an initiative to improve strategic metal supply chains. Together with Ganfeng Lithium, ILC has the opportunity to be part of this development and we are optimistic that we have a new potential source for the lithium battery supply chain".

Mr. Wang Xiaoshen, Vice Chairman/ VP, Ganfeng Lithium Corp. notes, "Recent news that corporations such as Tesla and Panasonic are making significant commitments to build gigafactory battery plants will significantly impact the demand for Lithium. Similarly the Chinese market will become increasingly more important to companies like Tesla in the near future. These two reasons make BLL an ideal prospect for the lithium industry."

International Lithium Corp. A Potential Source For Green Technology Minerals.

International Lithium Presentation May 2014 from Kirill Klip

Elon Musk To Occupy Mars, But First He Opens The Doors For Tesla To The World's Biggest Auto market.

  

  Elon Musk moves very fast and now the doors to the world's biggest auto market are wild open. Superchargers will make Tesla Model S capable to compete with ICE cars and Chinese government will do the rest. Air pollution is the nation wide issue and now government in China has announced the war on pollution. Electric cars are the very big part of this battle plan. Now one thousand fast chargers are being built in Beijing along and all new residential development must be wired for the electric cars. The new mandate is in place calling for 30% of all state owned cars to be electric. 

  China has escalated electric cars to the status of strategic industry and is building the supply chain of Strategic Commodities for the electric cars, mobile devices and alternative energy. LG Chem has announced its own Megafactory in China to produce 100,000 lithium batteries for electric cars per year. 

  International Lithium becomes the part of the vertically integrated lithium business in the huge market in China with its strategic partner Ganfeng Lithium.

   

International Lithium: Presentation Of Our Strategic Partner - Ganfeng Lithium May 2014 from Kirill Klip

Lithium Race: China Requires 30% of State Cars Use Alternative Energy.

 Beijing.

   As we have discussed here numerous times, China moves electric cars with its state-level plan into the strategic industry status. While West is still looking what is wrong with Tesla Motors and Tesla Model S Chinese companies are searching the globe and buying the best deposits of Lithium, Copper and REE. These will be the materials driving the next industrial rEvolution - electrification of our transportation systems.  High-speed railway network will solve the problem of mass transit in the future when Oil will be gone. China is building this network by thousands of miles per year and it is going to reach .... Singapore. Electric cars will solve the problem of mobility in the highly populated megalopolises.
  Elon Musk goes Open Source with electric cars now and Tesla Motors patents are available for all. It is not just charity, but rather carefully calculated move. And it is not the attempt to diminish our leader-in-chief altruistic incentives behind this move. Reality is that Elon Musk targets the Chinese market now with Tesla Model S and what is more important - with the new mass market model of electric car from Tesla Motors. It would be re-engineered in any case in China, but now if you can make that car cheap and in mass numbers, your strong partners in Asia will help Tesla Motors to fight counterfeit and people will not by the sub par quality.
  Can I put the name Foxconn again here?

Seeking Alpha:

As Tesla Races Ahead, Big Auto Is Running Out Of Time To Secure Its Own Battery Supplies

Summary

• The Tesla gigafactory is underway and will be ready by 2017.

• With the gigafactory, Tesla will have access to batteries at a cost close to $100 per kWh (at least three times cheaper than anyone else).

• If big auto does not start work on its own gigafactories, they will have gifted the EV market to Tesla.

Tesla (NASDAQ:TSLA) has broken ground on its gigafactory site in Nevada and a deal with Panasonic has been reached.

Thanks to Tesla's previous capital raising efforts and an immediate commitment of roughly $300-500 million from Panasonic, it is clear that close to $2 billion is available for the gigafactory construction over the next year.

By this time next year, Tesla will be producing close to 100,000 vehicles per year (Model S+X) and obtaining further financing to finish the gigafactory will not be difficult (if required at all).

In the most recent Tesla conference call, Elon Musk suggested that "in light of the technical and logistical advances the factory would bring, he would be 'disappointed' if it took Tesla 10 years to make a $100-per-kWh pack, suggesting it could happen before the end of the decade."

"It's heading to a place of no contest with gasoline," Musk said. "In the absence of the Gigafactory, this progress would be much slower."

Since the gigafactory is not expected to reach full production before 2020, one can only conclude from Mr.Musk's words that he expects the gigafactory to be able to get battery costs down to $100 per kWh or below.

The best estimates place Tesla's current per kWh battery cost somewhere between $250-$300, while the rest of the auto industry is believed to be paying well over $400 per kWh for their EV batteries.

If the gigafactory is capable of reducing battery costs to $100 per kWh or below, Tesla will hold all the cards when it comes to the Electric Vehicle market.

One must remember that the gigafactory will only produce enough batteries for 500,000 vehicles and that to do this it must produce more lithium ion batteries under one roof than the entire world produced in 2013.

As I have written in my previous articles, nobody in the auto industry will be close to being able to produce as many Electric Vehicles as Tesla unless they embark on building their own battery gigafactories in the very near future.

For example, Nissan (by far the leader in terms of pure EV production within the mainstream auto business) has only enough battery capacity to produce 200,000 Leaf's per year -- and that's when its battery plant is eventually running at full production.

Of course we must remember that a Leaf has less than half the range of the base 60 kWh Tesla Model S, which means that currently, Nissan only really has the ability to produce less than 100,000 long range EV's per year. That's assuming they plan on challenging Tesla's 200+ mile range, $35k Model III (expected in 2017) and halting production of the current Leaf.

The rest of big auto has virtually no battery supply on which to draw. GM, with the Chevy Volt, is in a distant second place behind Nissan with its battery plant able to produce enough for just 60,000 Volt's per year at max capacity (or maybe less than 15,000 long range EV's).

These battery capacity figures are taken from my own research which can be found here (with original sources). Seeking Alpha."

 Please Note our Legal Disclaimer on the Blog, including, but Not limited to:

There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.

We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.