Interesting read. I have a few issues with it. Back in the day when I used to lead a consulting firm, one of the things I changed was how we did SWOT analysis, and the problem with that paper arises directly from that issue. We changed SWOT to SWOTC where the C represented "Constraints". One big constraint is electricity generation, another is resource development timeline, another is supply associated (non-battery) resources (like copper) and another is political impact of environmental degradation (although this last could be considered a threat instead).
All the processes from mining through to use and ultimately recycling are power hungry, Their plan should have directly addressed the need to increase electricity generation and distribution capacity significantly, secondly the resource development timeline is long with little chance to shorten it - but addressing that is kind of the purpose of the entire paper, so Ok. The power supply issue is going to be a constraint however, because building more power stations and upgrading distribution networks to deliver the substantially increased electricity needed is going to take as long as a new mine. Lastly copper is needed in the wiring to carry electricity and is used heavily in the turbines/motors and it is also in shortish supply.
However the minimal attention being paid (1 page) to the recycling issue is a mistake. They should be planning for recycling now, not in a few year time. They should be setting asside storage capacity for old battery packs, planning collection and distribution systems and determining the location of recycling hubs, because in 10 years time there is going to be a significant volume of material ready for recycling and it will eventually become the primary Li and materials resource. If they wait until then there will be a huge amount of material lost to the system and a longer pay-back period for the recycling systems development.
GXY Price at posting:
$3.92 Sentiment: Buy Disclosure: Held
