It still amazes me that almost every day I get out of bed a major news piece appears that reinforces that the world is indeed embracing the age of e-mobility, and a lot sooner than most people think.
This morning I see that LG Chem have announced that they will increase their 'Battery Sales Fivefold By 2024'
Now if this represents the norm for the expected rate of growth for existing Global EV Battery manufacturers, then a Fivefold increase amounts to @2000GWh by 2024.
However, we still need to factor in all of the new players' factories (new announcements from June 2019 - to say 2022) that are planned to come online by 2024.
Then there's Real Estate giant Evergrande's push to become the largest EV company in the world. Last month Evergrande announced that they intend to 'invest $23 billion to construct three factories in the city of Guangzhou. One factory will be capable of producing a million electric cars a year while the other two will manufacture battery cells, electric motors, and the other bits and pieces that go into making an electric car. It says the battery factory will have a capacity of 50 GWh of batteries per year.'
Folks, these are only two examples of brand new players (= rapidly increasing interest) who are doing their bit to ensure that e-mobility has adequate battery capacity that the world is yearning for.
An additional 170Gwh by just 2 new players is astounding, and when you add these to the growing pipeline of Megafactories (now 91 and up from 74 just a few months ago) plus LG's announcement this week, then it is clear to see that the below graph from Benchmark Minerals is already out of date. Thus I've updated it to reflect the data and trends of these latest announcements.
Based on the above (and all IMHO) we're now looking at northwards of 2500GWh Global Battery Capacity by 2024, which is broadly inline with the estimates contained in my previous post on the subject - https://hotcopper.com.au/posts/39414154/single
Now the BIG question is; Where is all this Tier 1 Battery quality Lithium needed to produce literally tens of millions of EV batteries going to come from?? This once in a lifetime Battery Capacity Megatrend will make savvy and patient investors incredibly wealthy IMO.
And who (with a full legal suite of rights and government backing despite the odd smear campaign from no-name / faceless warriors) has the world's largest M&I resource by a country mile to supply imminent exponential demand - and in 'Tier 1' quality abundance for years to come from say 2021?
Hint: she is looking more and more beautiful (think upgraded M&I resource, 5mtpa SS, CDL drill results, upcoming Met Tests and DFS) by the day IMO
GLTA
Cheers
Elpha
AVZ Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
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