Toyota and Tesla: games around Lithium: Why the Japanese automaker is looking for an electric boost. TNR.v, CZX.v, RM.v, LMR.v, WLC.v, CLQ.v, SQM, FMC

"It is a very significant development not only for Tesla, but for Toyota and EV mass market evolution. Tesla has gained more credibility with this move and it is all about Tesla S model mass production. Roadster was making headlines, but not sales numbers. Tesla S promised to be a 5 seater with more than 200 miles range and price tag of 50000USD. It will not be able to compete with Nissan Leaf at USD25000 after federal tax rebate, but it is the move into right direction. Now apart from Mercedes, Tesla can count on Toyota's expertise in safety, mass production and cost control. Toyota way into EV space is not straight forward, it is the case when actions are more significant than words and sometimes words could be misleading. Toyota announced last September that after years of research they do not see Lithium batteries as a commercial choice for Hybrids at the moment. Lithium juniors crashed with the news hitting the wires. After that surprisingly Toyota place on display a few advanced models of Hybrids and plug-ins with lithium batteries an Frankfurt Motor show 2009. Toyota engineers at the show were talking about clear advantage for use of Lithium batteries. Later 2009 Toyota trading house took a stake in upcoming Lithium developer Orocobre Resources with lithium brine salar in Argentina. Now they have quickly moved into Tesla buying the time and expertise on lithium battery side and controlling systems. It has happen just weeks after the usual bashing of EVs and that Hybrids are the only way in the future."

Now we have another EV in the picture - it is Toyota's concept Plug-In EV with lithium battery. Lithium based battery chemistry is an industry adopted standard now in EV space and Nissan Leaf is the price leader with its price as low as 20000USD after federal and state rebates in some markets. Nissan spent more than 16 years and 5 billion dollars developing with NEC lithium batteries and Electric Cars - Toyota was concentrating on soft hybrids with small batteries and has lost advantage of first mover into the hybrid space. Tesla could bring the battle back close to the US market - where place will be for Tesla S and Toyota EV following the market leaders (as we think) Nissan Leaf and GM Volt.

Forbes:

Inside Toyota's Tesla Play

Joann Muller, 05.21.10, 06:32 PM EDT
Why the Japanese automaker is looking for an electric boost.

It's tough to say which company will benefit most from the new partnership between Japanese automotive giant Toyota Motor and American electric car upstart Tesla Motors.
In a surprise announcement the companies said they will cooperate on the development and production of electric vehicles and components, and that Toyota will buy a $50 million stake in Tesla when it goes public in the near future. Tesla also said it had purchased Toyota's former NUMMI factory near Silicon Valley.
The partnership undoubtedly boosts the credibility of Palo Alto, Calif.-based Tesla. Despite lots of hype about its battery-powered sports cars, many people have doubted whether Tesla has the capital or know-how to become anything more than a niche manufacturer. "Toyota must have conducted substantial due diligence before making this investment," said John O'Dell, senior editor of GreenCarAdvisor.com.
Toyota, meanwhile, gets to tap into Tesla's "coolness" factor--a quality sorely missing from the maker of stodgy Camrys and Corollas--and recapture some of its entrepreneurial legacy. "Toyota would like to learn from the challenging spirit, quick decision-making, and flexibility that Tesla has," said President Akio Toyoda, who has said one reason for Toyota's current quality woes is that the company has grown too big and sluggish. "By partnering with Tesla, my hope is that all Toyota employees will recall that 'venture business spirit,' and take on the challenges of the future."
Odd as it might seem for the world's leading manufacturer of hybrid vehicles, Toyota also has some catching up to do when it comes to fully electric cars. Both Nissan and General Motors plan to introduce plug-in EVs in the U.S. before the end of this year. Toyota, meanwhile, intends to offer a short-range, electric commuter car and a plug-in Prius hybrid in the U.S. in 2012. By teaming up with Tesla, whose current roadster can go 245 miles on a single charge, Toyota said it will have more options. Like other large automakers, Toyota is required in places like California to offer some vehicles that emit little or no tailpipe pollution.
Perhaps even more important, however, is how the Tesla deal helps Toyota politically.

First, it softens the public relations blow Toyota suffered in California when it closed the NUMMI factory last month. The plant used to be a joint venture between Toyota and General Motors, but Toyota got stuck with it after GM filed for bankruptcy and a judge terminated their contract. Toyota said it could no longer afford to operate the factory alone.
"Toyota obviously made a wise political move there," said Sean McAlinden, chief economist for the Center for Automotive Research.
United Auto Workers President Ronald Gettelfinger applauded the decision to revive NUMMI, which once employed nearly 5,000 people. "Our union's hope is that this venture will give first hiring preference to former NUMMI employees who are already trained and highly skilled," said Gettelfinger.

Of course, a few thousand electric cars won't make up for the 400,000 Toyotas and Pontiacs that used to come out of that factory annually under the GM-Toyota joint venture, but it's a start. "The new Tesla factory will give us plenty of room to grow," said Chief Executive Elon Musk, without indicating whether UAW workers would get first dibs on newly created jobs.
Musk said Tesla will ramp up to about 1,000 jobs when it starts production in 2012.
Toyota's deal with Tesla ought to play well in Washington, too, where the carmaker is under siege for its handling of sudden acceleration complaints.
U.S. policy makers have been pushing electric-car technology as a way to reduce the nation's oil use and its dependence on foreign energy sources. By giving a hand up to an American maker of EVs, Toyota is furthering that objective."

Germany to Euro Shorts: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.” TNR.v, CZX.v, GBN.v, ASM.v, GRC.to,

Nothing is for certain, but our reversal in USD is well under way. With US Debt close to 13 Trillion all Euro situation is just an aberration in the History of US Dollar Collapse. US budget deficit is projected for years ahead to stay above 1 Trillion dollars with Gross Federal Debt well over 70% of GDP assuming it at 14 trillion, can you even imaging in U.S. German rules:

"Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016."

On a weekly chart US Dollar is very close to finish this week with a very strong Bearish reversal candle.

Do not burn your Euros yet, US Dollar was appreciating on Europe worries, but the weaker Euro is exactly what Europe needs in Competition for Export to Emerging markets and China first of all.

After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:

FT:

Bundestag backs eurozone rescue

By Quentin Peel in Berlin
Published: May 20 2010 12:52 Last updated: May 21 2010 11:37
Germany’s lower house of parliament on Friday approved Berlin’s contribution to a €750bn stabilisation package for the eurozone.
After fraught talks with parties in the Bundestag on Thursday, it became clear that Angela Merkel, chancellor, would win a majority in favour of German credit guarantees of up to €150bn ($187bn, £130bn) from her centre-right coalition but fail to win cross-party support from the opposition Social Democrats and Greens.
The Bundestag passed the bill with 319 votes in favour, 73 against and 195 abstentions. The Bundesrat upper house is expected to pass the bill later on Friday.
Ms Merkel’s promises of tougher rules for the eurozone and action to curb speculation in the financial markets have been part of the price to win parliamentary support for the loan guarantees. A move to ban naked short-selling of eurozone debt was also seen in Berlin as a clear political gesture to win the parliamentary majority
On Thursday Ms Merkel stepped up pressure for a global agreement on tighter financial regulation, a banking tax or levy and a financial transaction tax, while spelling out the rules it wants members of the eurozone to adopt to curb their public debts and deficit spending.
George Osborne, UK chancellor, was separately expected to tell EU finance ministers in Brussels on Friday that Britain would resist attempts to improve economic governance that require a change to the European Union treaty.
The new UK government is committed to a referendum on any treaty that transfers new powers to Brussels. Mr Osborne has said he will oppose suggestions that he should show his Budget to the European Commission before presenting it to parliament.
Thomas De Maizière, Germany’s interior minister, said Berlin would increasingly seek to defend its own interest in the EU while shedding its role as passive paymaster. “Germany is going to act just as other European countries do in Brussels and this will not make it automatically anti-European,” he said.
Wolfgang Schäuble, finance minister, published a nine-point programme of proposals for more rigorous policing of the budgetary policies of eurozone members, including a proposal to draw up a procedure for “orderly state insolvencies” for countries that cannot service their debts.
Other points in his plan, to be presented on Friday at the first meeting of a task force in Brussels charged with rewriting the rules of the common currency area, include stripping countries of their votes if they persistently break stability and growth pact limits on deficit spending, and cutting them off from regional investment funds.
Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016.
Ms Merkel and Mr Schäuble are adamant that more action must be taken at the level of both the EU and the Group of 20 economies to regulate financial markets, in addition to adopting much more rigorous budget controls within the EU.
Ms Merkel called on financial institutions to give “honest advice” about how their activities should be regulated, warning they would face political measures to regulate the markets whatever happened.
Mr Schäuble appeared more sceptical. Challenged to defend Germany’s ban on naked short selling in light of the hostile reaction in the markets, the minister said: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.”
Additional reporting by Joshua Chaffin in Berlin and George Parker in London

Toyota Motor Corp. is buying a $50 million stake in electric-car maker Tesla Motors Inc. TNR.v, CZX.v, RM.v, LMR.v, WLC.v, CLQ.v, SQM, FMC, ROC, TTM,

It is a very significant development not only for Tesla, but for Toyota and EV mass market evolution. Tesla has gained more credibility with this move and it is all about Tesla S model mass production. Roadster was making headlines, but not sales numbers. Tesla S promised to be a 5 seater with more than 200 miles range and price tag of 50000USD. It will not be able to compete with Nissan Leaf at USD25000 after federal tax rebate, but it is the move into right direction. Now apart from Mercedes, Tesla can count on Toyota's expertise in safety, mass production and cost control. Toyota way into EV space is not straight forward, it is the case when actions are more significant than words and sometimes words could be misleading. Toyota announced last September that after years of research they do not see Lithium batteries as a commercial choice for Hybrids at the moment. Lithium juniors crashed with the news hitting the wires. After that surprisingly Toyota place on display a few advanced models of Hybrids and plug-ins with lithium batteries an Frankfurt Motor show 2009. Toyota engineers at the show were talking about clear advantage for use of Lithium batteries. Later 2009 Toyota trading house took a stake in upcoming Lithium developer Orocobre Resources with lithium brine salar in Argentina. Now they have quickly moved into Tesla buying the time and expertise on lithium battery side and controlling systems. It has happen just weeks after the usual bashing of EVs and that Hybrids are the only way in the future.

We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to deflation war scenario. It is time for Lithium to come into picture.

Bloomberg:

"Toyota Buying Tesla Stake for Electric Car Tie-Up

May 21 (Bloomberg) -- Toyota Motor Corp., the world’s largest automaker, is buying a $50 million stake in the Californian electric-car maker Tesla Motors Inc. as automakers compete to offer low-polluting models in the U.S.
Tesla will also buy a closed Toyota joint-venture factory in California to build its Model S and other vehicles, Tesla Chief Executive Officer Elon Musk said yesterday. The companies said they’ll cooperate in developing electric cars, parts, production systems and engineering support.
The deal may help Toyota, the world’s biggest carmaker, compete with Nissan Motor Co. and General Motors Co. in selling electric cars in the U.S., where regulations on greenhouse gas emissions and fuel efficiency are pushing them to offer advanced vehicles. It may also help the Toyota City, Japan-based company’s image, battered by recalls, by reviving the New United Motor Manufacturing Inc. plant in Fremont, California, known as NUMMI.
“This seems like a good deal for both parties, especially Toyota, from being able to avoid the political fallout from shutting NUMMI down to being able to offer a new electric vehicle with just a low initial investment cost,” said Jeremy Anwyl, Chief Executive Officer at auto industry researcher Edmunds.com in Santa Monica, California.
Joining Daimler
The size of Toyota’s stake in Tesla hasn’t been fixed ahead of a share sale by Tesla, Musk said in an interview. Daimler AG in May 2009 invested about $50 million in Tesla, which is supplying battery packs to the Stuttgart, Germany-based company for a test fleet of electric Smart minicars.
In July, Daimler sold a portion of its share of Tesla to the German automaker’s largest investor, Aabar Investments PJSC, reducing its stake to about 5 percent.
Daimler “welcomed” Tesla’s partnership with Toyota, which “likewise has the goal of advancing electric vehicles,” said Brigitte Bertram, a Daimler spokeswoman for the automaker in Stuttgart, Germany. The Toyota-Tesla linkup “doesn’t impede” Daimler’s cooperation with the California automaker.
Toyota fell 1.9 percent to 3,355 yen in Tokyo, while Nissan dropped 3.4 percent and Honda Motor Co., Japan’s second-largest carmaker, declined 2.5 percent.
The tie-up brings Toyota, the world’s biggest seller of hybrid autos, together with Tesla, the only company now selling U.S. highway-legal battery-powered cars. Electric-car technology has been supported by U.S. policy makers including President Barack Obama as a way to reduce the nation’s oil use and dependence on foreign energy sources.
Obama set a goal of getting 1 million plug-in hybrids and electric cars on U.S. roads by 2015.
Nissan, GM
Nissan is preparing to introduce its Leaf electric hatchback, powered by a lithium-ion battery pack, in Japan and the U.S. this year. Nissan Chief Executive Officer Carlos Ghosn has set a goal of leading sales of rechargeable vehicles, which he estimates may make up 10 percent of global auto demand by 2020, and is spending more than 500 billion yen ($5.5 billion) developing electric cars.
GM plans to introduce its Volt plug-in car in October. The car will initially be marketed to drivers in California, which requires large automakers to offer some vehicles that emit little or no tailpipe pollution.
Toyota intends to offer a short-range, “urban commuter” electric car in the U.S. in 2012 and begin retail sales of a plug-in Prius hybrid the same year.
Toyota, which will continue to develop its own electric vehicle, said Tesla’s long-distance models give the Japanese automaker more options. Toyota said hybrids should remain a more practical option for most customers until electric cars become more popular.
Share Sale
Palo Alto, California-based Tesla has 2,000 reservations for the Model S sedan and intends to begin “volume” production of the car in 2012, with a projected annual output of as much as 20,000 a year. The company has delivered about 1,000 of its $109,000 Roadster electric sports cars, while losing more than $230 million.
Tesla hasn’t posted a profit in the six years since it was founded. The company plans to use proceeds from an initial share sale and a $465 million government loan to help produce the Model S, an electric car that is to cost less than $50,000 after a federal tax credit.
Fund Raising
Tesla aims to raise about $100 million from its share sale and has said it may use proceeds to pay for factories and equipment estimated to cost as much as $125 million this year, and for acquisitions.
“I’ve felt an infinite possibility about Tesla’s technology,” said Akio Toyoda, chief executive officer of Toyota, founded by his grandfather. “By partnering with Tesla, my hope is that all Toyota employees will recall that ‘venture business’ spirit.”
The company is backed by investors including Mountain View, California-based Google Inc.’s co-founders Larry Page and Sergey Brin, and the government of Abu Dhabi. Daimler, the world’s second-biggest maker of luxury vehicles, invested last May. Tesla said Musk told Daimler about the Toyota partnership on May 19.
The revival of NUMMI, for 25 years a joint venture between Toyota and the former General Motors Co., will create 1,000 jobs, California Governor Arnold Schwarzenegger said. The plant closed in April.
To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net Last Updated: May 21, 2010 05:57 EDT"

China goes Electric: BYD electric car to be sold in US for $40,000 TNR.v, CZX.v, RM.v, LMR.v, WLC.v, CLQ.v, SQM, FMC, ROC, HEV, AONE, VLNC, F, BYDDY,

BYD claim a very impressive range on one charge with 300 km. "Super-iron battery is a Lithium Fe one. Nissan Leaf with price around 25000USD after federal tax rebate seems to be the leader on the pricing side. Its range will be around 160 km.

Competition for Oil is heating up and aggressive move by China into Electric Cars leaves no other options for US than to follow. In order to keep power China needs gradually improve standard of living, it will bring upside pressure on labor cost. Electrification will not only provide Energy Security to China, but will significantly reduce the cost of its transportation element and provide another opportunity to stay among low cost producers. Situation is completely different to U.S. - they have capital to invest in Electric Mobility CAPEX now and rip the rewards of lower cash cost on transportation side later.

People's Daily Online:

BYD electric car to be sold in US for $40,000

Chinese automaker BYD Auto officially delivered 30 pure electric E6 vehicles to the Shenzhen-based Pengcheng Electric Taxi Company on May 17, 2010. As the world’s first pure electric taxis, BYD E6 taxis have attracted wide attention and support from the public. BYD will start selling the E6 in the United States in 2010 for around 40,000 U.S. dollars.
A BYD E6 electric taxiXia Zhibing, general manager of BYD Auto, said preparations for the BYD E6's entry into the U.S. market are well under way. One of the tasks of the recently-established BYD North American sales headquarters is to sell the alternative-energy vehicles. Du Guozhong, BYD’s public relations manager, said that BYD E6 has passed all necessary tests including battery safety tests in the United States, and will go on sale in U.S. markets in 2010 for around 40,000 U.S. dollars.BYD E6 is a high-performance SUV-MPV crossover vehicle independently developed by BYD. The car is 4,560 millimeters long, 1,822 millimeters wide and 1,630 millimeters in height, with a wheelbase of 2,830 millimeters. There are only five seats in the spacious car body to ensure passengers plenty of room to sit comfortably. BYD E6 can run up to 300 kilometers on one charge, taking the lead among electric vehicles. Meanwhile, it is the pioneer of eco-friendly vehicles using a rechargeable super-iron battery and a starter battery. The super-iron battery will not cause any harm to the environment and all its chemical substances can be decomposed and absorbed harmlessly in nature, solving environmental problems including secondary resource recovery. Therefore, it is an eco-friendly battery. The super-iron battery can be charged in slow-mode with a 220V power adapter and a 3C adapter in fast charge, filled to 80 percent within 15 minutes. In terms of energy efficiency, BYD E6 consumes around 20 kWh of electricity per 100 kilometers, making it only one-third to one-fourth the cost of fuel-powered cars. In security, the super-iron batteries installed in the E6 have been proven to have excellent safety and will not cause an explosion in high temperatures, high pressure and accidents. Using penetrable side rails, it has good anti-collision performance. In terms of performance, it has a start-up time of less than 10 seconds and its maximum speed is 140 kilometers per hour.Its entry into the U.S. market in 2010 will be a historic moment for BYD Auto. The selling price is expected to decrease once the production and sales volume increases. By People's Daily Online"

US Dollar Collapse: Potential Reversal GDX, HUI, XAU, FXI, TNR.v, CZX.v, GRC.to, GBN.v, EPZ.v, ASM.v, CUU.v, CPG.v, RM.v, LMR.v, GDX, GDL, SLV

Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.

The real drama is here above, It is Long Treasuries daily chart and it looks nervous, nobody even talks here about cuts, fiscal discipline and austerity measures. Once Europe is engaged in QE and ECB starts buying sovereign bonds from banks, attention will come back home. Recent spike in prices can be very short lived in a big picture frame.

Nothing is for certain in these days, but that candle on the chart above can mean reversal and that Green Buck Party is over. Less bad in the end is still bad. Market is ready to forget the Greece and remember California. With all investment banks discounting euro and providing parity forecast, counter rally can be very sharp. Euro below 1.2 means Europe disintegration, there are means to prevent it and intervention is already in the cards.

On the weekly chart US Dollar looks tired as well and with intervention in Japan and Europe reversal can easily tip the scales - remember in the end it is game to debase all FIAT currencies.

"It was second Deflationary Test with sudden drop in liquidity this time driven by sovereign debt crisis. Call it Run On The Bank among Big Guys. Fifteen minutes made no mistake about the state of the market and economy in deflationary environment - we have seen the future and it is ugly. Deflation spiral means death of financial market by thousand cuts - financial system is insolvent and the only way to run it is to keep liquidity high enough that nobody is testing it to deliver. QE will provide flood of money, debt will be rolled over and by destroying the value of FIAT currencies Debt will be Inflated out in the end. This time it is different - it is not only our theory, but confirmed market action. This time the most important here is that Gold was at almost all time high at the moment of test, Gold was moving up against all currencies and this time in a sharp contrast to the events of 2008 it was sharply up and over 1200 on the day of Market Crash. This new round of QE (when Europe has not even started!) will be going already from this very high base in Gold value and rising Inflation in Commodity and Growth driven economies. We will not go into the debt issue today in details and will only point out that it is a notch under 13 Trillion and in dangerously close proximity to 100% of GDP of U.S.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?"

Los Azules: TNR Gold Files Full Response to Minera Andes' Statement of Claim TNR.v, MAI.to, CZX.v, NG.to, LUN.to, ABX, AUY, AEM, BVN, VALE, RTP, FCX,

"In our quest for the new Bulls ignited by Peak Oil and new disruptive transformational technologies we can not avoid old solid Copper play. Electricity is the most convenient form of energy available to us, it could be generated by using different sources, it could be transported and it could be transformed in another form of energy or to power different devices from A/C to iPod. Now we have means to store it, game has been changed in Energy Business with development of lithium batteries powerful enough for mobility applications. Electric cars is the new game in town and we have defined our Lithium Bull on supply side for Energy Storage applications."

"More on Los Azules

Value of the prise in the ground at Los Azules is rising with every drill hole. It is very important to see that the best grade was in a step out hole 300m to the North - we have a very big chances of increasing size of the deposit at Los Azules. The step out hole 51 and majority of the High Grade Core of the deposit are located on Xstrata's part of the property, back in right into which is now the subject of legal dispute between TNR Gold, Xstrata and Minera Andes."

Interesting - it is the only comment we can make...now we can finally see the legal position of TNR Gold in this litigation process, history of relationship between Xstrata and Minera Andes and what has happened according to lawyers of TNR Gold behind the curtain. We guess that TNR Gold litigation team with George K. Macintosh, Q.C, from Farris, who signed the Statement of Defence, will not allow any baseless conclusions and they have discovered some evidence to the actions described in article 15. These actions give an interesting interpretation to the true intentions and motivations of the different parties involved in the case if provided statements will be proven to be true in the court. Logic of waiving feasibility study and 5 million dollars in trust account to exercise the back-in right are described in details as well. We will refer you to the legal disclosure in the News Release.

We have a position in this company, please, do not consider anything as an investment advise, as usual, on this blog.

TNR Gold Files Full Response to Minera Andes' Statement of Claim

Press Release Source: TNR Gold Corp. On Monday May 17, 2010, 11:29 am
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2010) - TNR Gold Corp. (TSX VENTURE:TNR - News) and its wholly-owned subsidiary, Solitario Argentina S.A. (collectively, "TNR"), have filed an Amended Statement of Defence and Counterclaim in the Supreme Court of British Columbia responding in detail to the Statement of Claim filed by Minera Andes Inc. and certain related entities (together, "Minera Andes").
As disclosed in our April 23, 2010 press release, TNR notified Minera Andes that it was exercising its back-in right for 25% of certain of the properties constituting the Los Azules project in Argentina (the "Los Azules Project"). Minera Andes is contesting TNR's ability to exercise its back-in right.
The Amended Statement of Defence sets out, among other things, TNR's position as to why the back in clause in the May 2004 Exploration and Option Agreement should be rectified to remove reference to a feasibility study being completed within 36 months, and why the condition linking the timing of the back-in right to the production of a feasibility study was for the sole benefit of TNR and, therefore, could be waived by TNR. TNR has brought a Counterclaim which seeks a positive declaration from the court that TNR's April 23, 2010 back-in notice is valid and enforceable.
We encourage interested parties to review the Amended Statement of Defence and Counterclaim in their entirety on our website for a better understating of our position. The link for this information is as follows:
http://media3.marketwire.com/r/Counterclaim
ABOUT TNR GOLD
TNR and International Lithium Corp ("ILC") are diversified metals exploration companies focused on exploring existing properties and identifying new prospective projects globally. TNR has a portfolio of 18 active projects, of which 9 will be included in the proposed spin-off of International Lithium Corp. For further details of the spin-off please refer to TNR's April 12, 2010 press release or visit http://www.internationallithium.com/.
The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the companies' commitments to generating projects, diversifying its markets, and building shareholder value.
On behalf of the board,
Gary Schellenberg, President
Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that TNR expects, including the outcome of pending and current litigation, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. In particular, there are no assurances that TNR will be successful in the current litigation with respect to the Los Azules Project and its back-in right. Accordingly, readers should not place undue reliance on forward-looking statements. This press release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.
In addition, it should be noted that the Statement of Defence and Counterclaim are not intended to be, and should not be interpreted as, sources of factual, business or operational information about TNR or any of its affiliates. The Statement of Defence and Counterclaim contain assertions that have been prepared solely for use in connection with the legal dispute with Minera Andres, have not been proven and should, therefore, not be relied upon.
CUSIP: #87260X 109
SEC 12g3-2(b): Exemption #82-4434
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release."

Lithium market: Rockwood calls for Electrification of U.S. Transportation ROC, TNR.v, CZX.v, LMR.v, RM.v, WLC.v, CLQ.v, HEV, AONE, GM, NSANY, F, FMC,

Competition for Oil is heating up and aggressive move by China into Electric Cars leaves no other options for US than to follow. In order to keep power China needs gradually improve standard of living, it will bring upside pressure on labor cost. Electrification will not only provide Energy Security to China, but will significantly reduce the cost of its transportation element and provide another opportunity to stay among low cost producers. Situation is completely different to U.S. - they have capital to invest in Electric Mobility CAPEX now and rip the rewards of lower cash cost on transportation side later. We will refer you to the Economics of Electric Cars.

Rockwood Holdings Chairman and CEO, Seifi Ghasemi, Urges Further Electrification of U.S. Transportation to Ensure National, Economic and Environmental Security

PRINCETON, N.J., May 17, 2010 (BUSINESS WIRE) -- Seifi Ghasemi, chairman and chief executive officer of Rockwood Holdings, Inc. /quotes/comstock/13*!roc/quotes/nls/roc (ROC 27.70, -0.18, -0.65%) ,speaking at an alternative energy conference in Washington D.C., urged policymakers and others to recognize that "electrification of our transportation system is essential for the future ."
Mr. Ghasemi made his comments at a panel, "Vehicle Electrification, Laying the Groundwork for Mass Adoption," at the Deutsche Bank Alternative Energy Conference, which included other members of that Coalition. Following is the text of his opening statement:
"The first point I want to make is why we are convinced electrification of our transportation system is essential for the future," Mr. Ghasemi said. "Our current way of life, and to some extent, our day-to-day existence is totally dependent on a transportation system which is powered by the internal combustion engine. To maintain this means of transportation, we are dependent on imported oil. This dependence, especially in the last 40 years, has created three significant problems for the United States and the western world in general. They are:
-- national security
-- economic security
-- "environmental sustainability."
Mr. Ghasemi's went on to explain, "On the national security front, we are dependent on oil from very unstable and hostile regions of the world. Therefore, to secure the flow of oil, we are spending billions of dollars to have a military presence in the Persian Gulf and other strategic parts of the world to ensure security of supply. To fuel our current transportation system based on the internal combustion engine, we are paying in treasure and blood. This cannot go on forever.
"Second, on the issue of economic security, the United States alone spends close to $300-400 billion a year on imported oil to fuel our transportation system. This is a gigantic transfer of wealth to other, mostly hostile regions of the world. Considering our current national debt, this cannot continue for much longer either.
"The third issue of environmental sustainability is obvious. Gasoline driven cars do pollute," Mr. Ghasemi said.
He concluded, "We believe, strongly, that electrification of our transportation system is the only logical solution to the above problems. Nuclear energy, wind power or solar energy alone will not make us free of imported oil. As long as our transportation system is based on the internal combustion engine we will be dependant on imported oil.
That is why we think electrification of the transportation system is the right way to move forward. Thus, we are very supportive of the actions taken, and policy proposals put forth by the Electrification Coalition.
"As a leading producer of lithium, we at Rockwood will do our best to ensure an adequate and secure supply of lithium to power the lithium ion batteries for electric cars of the future."
Rockwood Holdings is a global producer of specialty chemicals and advanced materials and the largest producer of lithium and lithium compounds. The company is also a founding member of the Electrification Coalition, a nonpartisan group of business leaders committed to promoting policies and actions that facilitate the deployment of electric vehicles on a mass scale in the United States.
Rockwood Holdings, Inc. is a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 9,500 people and annual net sales of approximately $3 billion. The company focuses on global niche segments of the specialty chemicals, pigments and additives and advanced materials markets. For more information on Rockwood, please visit http://www.rocksp.com/.
The information set forth in this press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc. and its subsidiaries and affiliates ("Rockwood"). Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "predicts" and variations of such words or expressions are intended to identify forward-looking statements. Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. "Forward-looking statements" consist of all non-historical information, including any statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood's forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood's 2009 Form 10-K on file with the Securities and Exchange Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
SOURCE: Rockwood Holdings, Inc.

Gold in South America: Cornerstone Reports Significant Progress on Ecuador Permits CGP.v, AUY, NEM, ABX, TNR.v, BVN, HUI, XAU, GDX, FCX, GG, MAI.to,

Macara

Related News

Cornerstone and Newmont Propose to Form a Strategic Exploration Alliance in Southern Ecuador
Primary TargetGoldLocationThe Macara concessions is approximately 75 km2 located near the Ecuador-Peru border. The Strategic Alliance area of influence encompasses approximately 2000 km2.Property InformationThe property hosts gold bearing quartz-tourmaline veins and breccias associated with an intrusive body. Recent work by Sierramin has returned assay values from channel samples up to 23.8 g/t Au over 1.0 m and 7.3 g/t Au over 1.8 m. Chip samples collected during reconnaissance prospecting returned assays of 13.0 g/t Au over 2.0 m (incl. 44.2 g/t Au over 0.5 m) and 8.3 g/t Au over 0.65 m from sulphide bearing quartz veins within shear zones cutting granites.

"Cornerstone Reports Significant Progress on Ecuador Permits

Press Release Source: Cornerstone Capital Resources Inc. On Monday May 17, 2010, 8:00 am
MOUNT PEARL, NEWFOUNDLAND--(Marketwire - May 17, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP - News; FRANKFURT:GWN - News; BERLIN:GWN - News; PINK SHEETS:CTNXF - News) reports that it has been issued a number of key permits needed to re-start exploration activities in Ecuador. During the first two weeks of May, Cornerstone received new titles under the January 2009 mining law to 13 of its mineral concessions including the 10 Shyri properties under option to Intrepid Mines Ltd. (see news release October 29, 2009).
Also issued by the Ecuador Ministry of Environment during this period were the approval of the Environmental Management Plan for the Gama property, part of the Shyri project, and a water permit for drilling at Gama. Cornerstone representatives are meeting with the regulators this week to determine any final steps required to initiate exploration work and will provide updates of further developments. While the permitting process has been a lengthy one under an array of new laws and regulations in Ecuador, the company is encouraged that it is progressing within the current legal framework and expects to have its final permissions in the near future.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please see contact information.
Cautionary Notice:
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
Colin B. McKenzie, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Life after Oil: Copper, Energy Efficiency and Green Mobility Revolution TNR.v, MAI.to, FCX, BHP, RTP, LUN.to, CZX.v, CS.to, QUA.to, CHD.to, AUY, NEM,

"Peak Oil and Lithium: Joint Operating Environment 2010
Please pay attention, this report is written by those who knows the Real Price of Oil. If you account all military needed to protect Oil supply lines and cost of wars to get more oil, price will be well above 150 USD/barrel already. Now we all have another problem: there is simply no more oil enough for all. Will future wars for oil be the only answer?"

Electric Cars is the only commercially viable technology today to sustain mobility world wide with rising Oil prices. Lithium is at the heart of Green Mobility revolution - it is an industry adopted standard for batteries and billions of dollars are invested into battery technology and upcoming by the end of this year Electric Cars on a mass market scale. This Bull market is still very young - only a year or so from the beginning after the crash of 2008."

In our quest for the new Bulls ignited by Peak Oil and new disruptive transformational technologies we can not avoid old solid Copper play. Electricity is the most convenient form of energy available to us, it could be generated by using different sources, it could be transported and it could be transformed in another form of energy or to power different devices from A/C to iPod. Now we have means to store it, game has been changed in Energy Business with development of lithium batteries powerful enough for mobility applications. Electric cars is the new game in town and we have defined our Lithium Bull on supply side for Energy Storage applications. In a sharp contrast to Hydrogen proposition you do not have to invest first billions in the Hydrogen infrastructure - electric infrastructure is here already and it is relatively easy to extend and upgrade it for EV mass market use. Our argument here is that once we moved from high energy density fuel like Oil for mobility applications, we have really revolutionary development in batteries for energy storage and it will be always cheaper and safer to produce electricity at industrial scale plant than on board of the vehicle, when it should be safe, light, cost efficient and with high specific power. Here where Copper come into play as a "Green metal". We will need to provide the "Last Mile" - to build charging points. Copper is at the heart of every electric motor and electric motors are all around us providing necessary conversion of electricity into mechanical power. Now in this space the focus is on energy efficiency and Copper is taking the central stage.

"About Copper & Energy Efficiency

There's no better solution than copper when it comes to improving the energy efficiency of electrical products.
Copper is one of the most reliable and efficient media for transmitting electric power. Electricity flowing through copper wires meets far less resistance than it would in aluminum or steel wires of the same width. In fact, copper is a better electrical conductor than any other metal except silver, making it the most economical and efficient electrical conductor available. Using copper wires results in lower electrical transmission losses, thus conserving energy and reducing demand on generating capacity, which ultimately benefits us all!
As demands for electrically operated machines grow, consumers worldwide will naturally seek more energy efficient devices. Apart from saving on electricity bills, extensive use of copper in home construction will maximize safety, security and efficient energy management.
Conserve for tomorrow
Wasted energy needlessly depletes natural resources. It is expensive. It negatively impacts on the pocket books of people, companies, and national economies.
And it requires fossil-fueled power plants to work harder, thereby emitting more greenhouse gases and contributing to climate change. For all of these reasons, it is critical to find new ways to improve energy efficiency.
Switching to energy-efficient equipment, such as high- and premium-efficiency motors, high-efficiency transformers, and appliances requires only a modest additional investment. But that investment will more than pay for itself in reduced energy bills, usually within a short time.
Outstanding conductivity aside, copper possesses a number of other advantageous qualities as well. Copper is easy to work with and far more corrosion resistant than aluminum.
Sustainable Energy Efficiency Programs
ICASEA recognizes the need to continuously promote and tap Copper's limitless potential for electrical applications. We highlight the importance of the maintaining the economic efficiency of the energy systems so that society is aware that copper is an excellent conductor of electricity, and that increases the efficiency of electrical products. This in turn translates into lower operating cost, increased reliability, longer lifespan, and lower risk of brownouts, increased safety and more capital for business investments.
Our programs cover the entire chain of electrical systems - from electrical power generation to the transmission, distribution and end use of electricity. The benefits reaped include less waste and less heat generated when electrical systems are utilized for serving mankind.
We do this through sharing information and best practices in developing countries on the benefits of upsizing to the correct gauge of copper wires used throughout the construction industry to reduce heat loss and increase energy efficiency.
It is apparent in power generators, high efficiency motors, power distribution transformers, and magnetic ballasts. Copper also offers the most substantial electrical and energy efficiency benefits over other materials. We have co-organized and co-sponsored intra-Asian programs that have unlocked opportunities within the intra-ASEAN network to share knowledge and gain a position of influence in strategically important forums of the industry. Our programs have laid the foundation for future expansion of markets for the members of our centre."

Nissan’s Lithium-ion Battery Costs Less Than $370 per kilowatt-hour TNR.v, CZX.v, RM.v, LMR.v, WLC.v, CLQ.v, SQM, FMC, ROC, F, NSANY, BYDDY, GM, RNO,

"Electric Cars is the only commercially viable technology today to sustain mobility world wide with rising Oil prices. Lithium is at the heart of Green Mobility revolution - it is an industry adopted standard for batteries and billions of dollars are invested into battery technology and upcoming by the end of this year Electric Cars on a mass market scale. This Bull market is still very young - only a year or so from the beginning after the crash of 2008.
We will provide you with few links to study the subject further:"

It will be all about the price in the end: mass market in EV space will be driven by affordability. Aggressive pricing by Nissan brought first pricing wars in the sector. Nissan Leaf will go on sale with little bit over 25000USD after federal tax rebate price tag. In some states like California additional state tax rebate will lead to even lower prices around USD20000. GM was talking about target USD400 per kWh capacity in a few years time, Nissan already talking about USD370 per kWh capacity. Our own estimation is that within next five years we will have double the capacity and 50% price reduction for the Lithium batteries.

TopNews:



Nissan’s Lithium-ion Battery Costs Less Than $370 per kilowatt-hour

The leaf electric cars by Nissan Motor Co. will be soon come in market, which aim to cut the cost of the vehicle's lithium-ion battery pack to less than $370 per kilowatt-hour to make a profit from the model. The target is compared with the Japanese government's industry wide estimate of about 150,000 yen ($1,600) per kilowatt-hour.
The partnership of Nissan, NEC Corp. and NEC Tokin Corp. is making the battery for Nissan and the price depends on factors including the scale of production as well as resale value for salvaging. "Our target is a lot tougher than $370" said Masahiko Otsuka, President of Automotive Energy Supply Corp.
The lithium-ion battery is the most costly component of the Leaf, which will sell for $32,780 in the U. S. and 3.76 million yen in Japan before government enticements for consumers. Nissan, which doesn't sell a mass-market gasoline-electric hybrid car, is now launching the Leaf in reaction to government emissions rules and potentially elevated oil prices.
Currently the cost of Nissan's battery is about 1.05 million yen, or $472 per kilowatt-hour and other components cost about 1.4 million yen, labor and other indirect costs must be contained to 35 % of the sticker price to secure a profit.
Nissan's Chief Executive Officer, Carlos Ghosn said this week that he plans to have capacity to build 500,000 electric cars a year by 2012. He estimates demand will reach 10 percent of the global car market by 2020."

Gold in Africa: Sunridge Gold and Antofagasta Minerals Exploration Joint-Venture Update, Asmara Project, Eritrea SGC.v, NGQ.to, NSU.to, LUN.to,

Company is putting another project under drill in its J/V with Antofagasta. Results from Daero Paulos drilling are disappointing so far. Asmara project is the most promising asset of the company now and recent development by Nevsun Resources with commissioning of mining equipment for mine in Eritrea will bring some tail wind with the exploration news.

Sunridge Gold Corp. (SGC-TSX-V) is a junior company that has successfully defined four independently estimated 43-101 mineral deposits on the Asmara Project, Eritrea in East Africa. A positive scoping study on the large Emba Derho copper-zinc-gold deposit was completed in June 2009.The four deposits have total indicated 43-101-resources containing:
1.28 billion pounds. of copper,
2.5 billion pounds of zinc,
1.05 million ounces of gold, and
31.2 million ounces of silver Sunridge recently entered into a strategic partnership with Antofagasta Minerals S.A. whereby Antofagasta has agreed to fund US $10,000,000.in exploration work on areas of the Asmara Project and has become the Company's largest shareholder through a US $5.0 million private placement.
Management: Sunridge is managed by an experienced team with a successful track record of discovery and development of precious and base metals projects with companies such as Bema Gold and Nevsun Resources.

Sunridge Gold and Antofagasta Minerals Exploration Joint-Venture Update, Asmara Project, Eritrea

Press Release Source: Sunridge Gold Corp. On Wednesday May 12, 2010, 8:30 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 05/12/10) - Sunridge Gold Corp. ("Sunridge") (TSX-V:SGC - News) is pleased to announce that Sunridge and Antofagasta Minerals S.A. have commenced a new drilling program at the Adi Rassi copper-gold prospect within the Asmara Project, Eritrea, which is within the Exploration Areas and part of the joint-venture exploration funding agreement with Antofagasta Minerals announced October 2, 2009. The Adi Rassi copper/gold prospect is located about 8 kilometers southeast of the company's Debarwa high-grade copper/gold VMS deposit. The program will consist of at least four holes totaling 1,200 meters of diamond drilling.
The copper and gold mineralization at the Adi Rassi prospect is associated with quartz veins and breccia zones along a major shear zone that trends northeast and dips steeply to the west. This mineralization is mainly hosted in strongly foliated and distorted altered mafic volcanic tuff and flows. Alteration associated with copper mineralization can be seen at surface in a zone that measures about 80 meters wide along a strike length of approximately 500 meters.
From 1971 to 1974 the prospect was evaluated by the Ethio-Nippon Mining Company and a drill program of 11 diamond drill holes comprising 2,170 meters of core were completed over a 550 meters of strike length. The best results from this historic drilling were 41.3 meters of 1.77% Copper (DDH EN-7) and 33.6 meters of 1.5% copper (DDH EN-4).
Note: The above drill results are taken from the report "Adi Rassi Copper Prospect - Ore Resources Evaluation" by D.J. Toogood, December 1997, Phelps Dodge Exploration Corp. While the above historical data appears to be complete and the procedures followed appear reliable, Sunridge has not completed the work necessary to verify the reported results.
DAERO PAULOS DRILLING:
All results have recently been received from the drilling of the large Daero Paulos copper target also part of the Antofagasta joint-venture exploration funding agreement. Twelve widely spaced diamond drill holes were drilled over an area of surface alteration measuring approximately 500 meters wide and 2.5 kilometers long. The program returned only a few narrow zones of mineralization.
REGIONAL TARGET GENERATION
In addition to the above drilling programs a regional target generation program is underway covering all parts of the Exploration Areas as defined in the joint-venture exploration funding agreement with Antofagasta. Stream geochemical sampling, satellite imagery analysis and local geological mapping are the main tools being used and it is hoped that this work will result in the generation of new drill targets over the next few weeks.
ABOUT SUNRIDGE:
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
Sunridge has approximately 76 million shares outstanding and approximately $5.5 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at http://www.sunridgegold.com/ or call Don Halliday or Greg Davis at the numbers listed below.
NOTES:
1. A Quality Assurance/Quality Control program was part of the samplingprogram on the Daero Paulos copper prospect. This program includes chainof custody protocols as well as systematic submittals of standards,duplicates and blank samples into the flow of samples produced by thesampling.2. Samples were prepared at African Horn Testing Services (Eritrea) andanalyzed at Genalysis Laboratories (a NATA registered laboratory) inPerth, Western Australia.3. The results of the Daero Paulos copper prospect drill program have beenreviewed by Michael J. Hopley the Qualified Person for Sunridge. Mr.Hopley is also the person responsible for preparation of the technicalinformation contained in this news release and is President and ChiefExecutive Officer of Sunridge.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer"