CATL has been aggressively expanding its lithium battery production capacity.
Although currently we face with short term oversupply, but more likely turning into a shortage in around two years, then will be a big shortage as electric vehicle revolution accelerates as CATL chairman predicts 70% of car sales will be electric in 2035. That's about 70 million cars per year, requiring 3.5 million tons LCE, that's very bullish prediction. And where to source lithium from? By 2035, Greenbushes mine will be gone, and that's probably why Tianqi spent USD$4.1B just to acquire 23.77% of SQM.
AVZ management should have learnt a hard lesson from Pattersons, gladly they turned back to cornstone investors like Lithium Plus (its recorded shareholder is a director of CATL' North American Lithium) and Huayou. If a CR is required, I'd expect it would be done from cornstone investors.
CATL was interested in fully funded Manono Project two years ago. As electric vehicle revolution is much more clearer than two years ago and CATL has been expanding its business, will they let the world's largest high grade lithium project go? Especially it is valued at over 90% discount.
Always DYOR.
CATL chairman Zeng Yuqun: The electrification rate will exceed 70% in 2035
Electric pick
4 July 2019 11:46
On July 2, Zeng Yuqun, Chairman of CATL, stated at the 2019 World New Energy Vehicle Conference that "In 2035, we judge that the electrification rate will be greater than 70%, because by 2025, the basic electric Cars are more economical than fuel cars, and the market drive will be very good."
CATL increased its capital by 10 billion yuan, but shortage of raw materials is still a worry.
Future Auto Daily 2019-07-02
Demand surges, shortage of raw materials
Image from Ningde Times official website
Recently, the Ningde era announced a capital increase plan for its German battery production plant , which will increase the original investment of 240 million euros to not more than 1.8 billion euros (about 13.946 billion yuan), which will be self-raised by the company. The capital increase plan was passed by the company within the company. The German factory from achieving the world's largest battery factory of the target and taking a step forward.
The Ningde era is the world's largest supplier of power batteries, accounting for 22.64% of the global market share. In July last year, it signed an agreement with the German government and started the construction of its first overseas factory. The plant is mainly engaged in the research and development and production of lithium-ion batteries. It is expected to be put into operation in 2021. The initial planned production capacity is 14GWh. It is estimated that theannual production capacity will be 60GWh in 2026. This figure exceeds the total installed capacity ofChina's power battery (57.35Gwh) in 2018 .
Tesla is rumored to be working on a battery factory in Indonesia, local official says
Fred Lambert
- Jul. 23rd 2019 7:23 pm ET
@FredericLambert
Comments
Tesla is rumored to be working on some sort of battery factory in Indonesia, according to comments made by a local official.
Local news in Indonesia is reporting that the country’s Maritime Affairs Coordinating Minister Luhut Binsar Pandjaitan is stating that Tesla is amongst several companies looking to build battery manufacturing facilities in Indonesia’s Morowali Industrial Park (IMIP) in Central Sulawesi.
Antara News reported (in a poorly translated article):
“CATL (Contemporary Amperex Technology) is the one that entered Morowali, then it and LG were the major players. Tesla also joined it, but how much, I did not know… I do not know about Tesla’s role, as their consortium is the one regulating it,”
CATL, the largest battery manufacturer for electric vehicles in China, is apparently in the most advanced stages of the project, but LG and Tesla are also involved, according to the official.
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