Simply put, Tesla Battery Day involves larger battery cells, with greater energy density. The increase in size saves on production costs. Improved energy density means less cells per battery pack to achieve the same result. Plus a few other battery tweaks.
Some expectation that these improvements will smash the US$100kWh threshold. Therefore, TBD heralds the advent of the affordable EV.
However Musk has lamented the problem is Nickel. Lower costings will be achievable as production is scaled, which Nickel may not be able to meet. The use of iron for LFP batteries (rather than superior, longer range high Nickel Cathode batteries) will alleviate this problem.
High Nickel Cathode batteries will still be made but for higher end markets, like trucking and price inelastic EV buyers.
Spodumene miners cost advantage is in producing LiOH. LFP batteries only use about 2% LiOH.
http://www.pilbaraminerals.com.au/site/PDF/025d1e97-a9f3-4701-a85f-550661aa2dc6/CorporatePresentation Page 18
While I feel the Battery Day announcement will be good for Brines, it will be so for Hard Rock too.
LTR hit 23c on the ChiX monday. That's up some 70% on no news, in the past 3 weeks.
GXY hit $1.62 monday. That's up some 45% on no news, in the past 26 days.
ALB hit US$101 last friday. That's the highest its been since 2Nov18. PLS was trading at around 85c then.
Good to see PLS up at 38.5c now but that's only an increase of just over 10% in the past month.
Tesla Battery Day is rousing interest in all things EV. There is now worldwide interest in upstream EV chain investment. Tesla, Europe, Korea and even Russian interest recently (planning to secure 10% of world supply by 2030). Ganfeng and CATL with further upstream investment expansion plans.
I can't help but feel PLS is a little bit undervalued. Although, LTR and GXY project values are coming off a very low base. Still given the complexities of any mining operation, here we are with a Tier One resource and a proven low cost, efficiently running plant, with plans in place to expand upon quickly.
Expand
(20min delay)