SAN FRANCISCO, CA --(Marketwired - June 27, 2017) - James Dines, author of The Dines Letter , discusses in Streetwise Reports the importance of graphite in the manufacture of lithium-ion batteries and highlights one graphite company he expects to have an edge.
"Someday, as sneaky years whisper past, batteries will be seen to have been a crucial wave of the investing future. Uses for lithium ion batteries (LIB) are expanding and will be the main technology for mobility and stationary storage for many years to come. LIB's have been improved over the last 25 years, but it might take that long for any new battery design to pass through the development process to ensure they are safe for consumer use. Electrification of vehicles and the storage of green energy is driving massive growth in LIB cell manufacturing, forecast to increase 170% from today's current capacity of 103 GwH to 278 GwH by 2021 to meet the demands of electrification of automotive vehicles. Also, lithium batteries will be used for stationary storage in houses; they would charge with wind or sunlight present, to be consumed later. Many will buy rooftop solar along with batteries . The 2015 world market value of lithium ion batteries was $18 billion and is forecast to double to $36 billion by 2025 -- which we personally believe will be much larger.
"Auto sales in the US and Europe exceed 30 million and forecasts are that 20% of cars sold will be electric vehicles by 2025. This would require over 350 GwH produced a year by battery. By 2030 the annual sales of electric vehicles could be around 21 million, with an estimated 70-80-million electric vehicles on the road worldwide. Incidentally, China's goal is to have 5-million electric cars by 2020, with each electric vehicle also needing around three times more copper than a regular car. China expects to need 50,000 tons more copper annually for these electric vehicles. Copper's recent prices are now flat, and are at a critical juncture related to its trendlines.
"There are over a half-dozen battery Gigafactories being considered in the US, and a further half-dozen in Europe, far in excess of current capacity. Tesla has built a plant with a 35 GwH capacity, intending to grow it to 150 GwH, while Northvolt is planning a gigaplant in Sweden. This will not be enough to match demand in Europe and America, so a further 50-100 GwH will be required on both sides of the Atlantic."
Continue reading this interview: The Coming Battery Bonanza
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