toyota and lithium

--Toyota announced today it would aim to develop new Lithium-ion batteries to replace the Nickel Metal Hydride batteries currently used in the Prius. Lithium-ion batteries last longer and deliver more electricity.

--“That resource benefitted the former of Sons of Gwalia Mining in WA (Herbert Hoover’s old outfit). That outfit is now defunct (more on it below). And though (thanks to Greenbushes) Australia has the fourth-largest Lithium reserves in the world, the nature of those reserves means than Greenbushes may not benefit from the boom in Lithium that may come from increased lithium-ion battery production.

--“Spodumene deposits are not economically viable for the production of Lithium-ion batteries. But the brine lakes and salt pans of South America are. That is where Lithium’s investment future lies. There is so much Lithium carbonate in Bolivia, Argentina, and Chile that the whole region has been called “the Middle East of Lithium.” In a world full of plug-in-hybrid cars, you can see why the comparison is apt.”

--“Lithium-brines are rich in Lithium chloride. There are several major sources of these brines: in the U.S. state of Nevada (Sliver Peak and Clayton Lake), in Chile (Salar de Atacama), and in Argentina (Salar de Hombre Muerto).

--“Chile was the world’s largest producer of Lithium last year, followed by Australia, Argentina, China, and Russia. For that reason, Chile’s Sociedad Quimica y Minera (NYSE:SQM) is probably the most direct lithium “play” in the market. The company produces lithium carbonate, iodine, and potassium nitrate

--“But for my money, the most interesting plays are “upstream” in pure lithium producers. And even though they are all in South America, there are at least three Australian companies worth having a closer look at.” --More on this story—and all the macro news that’s fit to challenge—next week.