A lot to think about Dazed... Not much point having a "green"...

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minoil

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03/08/19

05:46

Post #: 39841423
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Originally posted by Dazedandconfused ↑

Anyone up for a discussion about the 'EV revolution'? If so I will kick it off...

Things I am finding...

* As the rollout of EV cars proceeds it will gradually impose greater demands on the production of electricity... so does that mean greater investment in nuclear power? [to avoid coal based generation?]... more wind-power?... more household PV? Taking ICE cars off the road means the base load power grid has to take up the slack.

*The charging station infrastructure has to precede the mass production of the EV's... this requires huge upfront investment and long term sunk costs... is anybody fronting the necessary cash [apart from China?]

* At the moment, the lithium market is minuscule compared to the oil market... on top of that every deposit is different and conversion into lithium hydroxide/carbonate can require individual tweaking. The emerging business model is offtake is being married to particular end uses... which means to understand the viability of any particular primary producer you have to also investigate the business case of the downstream partner.

*The current situation seems to be that the emerging lithium industry is not easily receiving investment funds from the big banks... needs vigorous government support... is that happening?

*The battery tech is still evolving... that creates uncertainty and slows down investment decisions.

In short... the potential market for lithium is huge but it is going to need massive, massive investment decisions... so far only China seems to be doing it [with the EU making the necessary regulation changes but not putting in much cash]. From a retail investor point of view I think it is the early movers which will go on to become the big companies... the late comers, I think, will be takeover targets as the industry grows. Transitioning away from fossil fuels has to happen... so in the next couple of years, if it is going to happen, we must see some really big numbers of $$$'s flooding in... As far as I can see, until that comes along the lithium sector is not going to prosper as a whole... only the current established players will be investable and they are the ones which might be the only growth companies in the sector.

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A lot to think about Dazed...
Not much point having a "green" car if you use coal fired power to charge it
A left field thought......charging stations are currently free but when they become established/ commonplace, then no doubt fees will come in......then smart metering would surely come into play?.... mobs like SIS??
Just the ramblings of a fool

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