Originally posted by findinggems
This may be correct if the PV system itself had zero capital cost, my PV system cost $12,000 for a 4.2 kW system nearly a decade ago and has an opportunity cost associated with it as I feed my grid electricity at $0.44 per kWh under the QLD Solar scheme.
It is a lot cheaper now. I have a 6.6kW system for $5,800 just recently in NSW. Still, point is, PV systems are now common, most would have them. Maximise it via self-consumption, charging your EV from PV, instead of feeding to the grid.
Even 8 years will be a stretch, I bet there will be range reductions written into the fine print of the warranty.
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You can try asking your local Hyundai dealer.
The future is uncertain this is true but my comparison was a very tidy look at the CURRENT economics of that one choice between an ICE and a PEV. This is the decision many people across Australia will have to make, the whole cost benefit analysis of a new breed of car.
The future is actually quite certain. EV adoption WILL increase. Therefore, where will you invest in ?
Granted, price parity has not been achieved yet, but it will come with better battery technology, mass production and competition, economies of scale. When that happens, you may be investing too late.
A slightly different question to ask is, would you buy an ICE vehicle now given that they will be "outdated" in a few years by EVs ?
The capital cost of the system is only one aspect, there is the opportunity cost of not feeding your electricity cost into the grid. Using an average market rate of $0.25 per kW avoids both issues of calculated asset costs and forgone opportunity cost from usage, storage, feed-in tariffs.
The future is actually quite certain. EV adoption WILL increase. Therefore, where will you invest in ?
Maybe GXY is approaching fair value at 10 times earnings but bare in mind that the lithium price is still falling, I would have to assume that once the lithium price stabilizes we may see a repricing back to 15 times earnings but by this stage the wildcard will be the grand battle between hardrock and brines for marginal supremacy.
In all honesty I know SFA about the economics of hardrock over brines but the preference of the worlds second largest lithium miner for Australian hardrock assets over Chilean brine ponds tells me there is a competitive advantage here, hence PLS is my main lithium play now.
Australian producers, who extract lithium from hard rock, are increasingly viewed as the cheapest producers of lithium hydroxide, reversing the traditional industry dynamic which has ensured the lowest cost producers are those in Chile and Argentina who turn briny water into lithium carbonate.
https://www.copyright link/business...ustralian-projects-over-chile-20181109-h17p4y
