Lithium Investing: Chinese EV Growth Drives Investment In The Lithium Industry
Jan. 11, 2018 1:18 PM ET
Chinese government mandates 8% new energy vehicles in 2019; 10% 2020.
Battery manufacturers have moved to increase output to meet growing demand.
Tight supply of lithium carbonate has increased prices in China to $18,000 T LCE.
Chinese companies have moved to acquire lithium assets in Argentina to secure supply.
Looking to 2018 and beyond, it is clear that China will play a critical role in advancing the electric vehicle industry as the political landscape is forcing a change within the automotive industry. At the highest level, the government continues to implement policies that will force automakers to offer electric vehicles or purchase credits from other automakers to ensure they are compliant with new standards. These policies have activated a number of events throughout the supply chain, which are assisting to shape the demand for various components required for the building of the lithium batteries that are now in high demand. In December 2017, the Chinese government extended a credit that returns up to 10% of the purchase price back to buyers.
The policy shift towards the widespread adoption of electric and plug-in hybrid vehicles in China has begun to place pressure on the lithium supply chain, which has propelled investment in the space. In December 2017, Ford (NYSE:F) announced a major expansion plan that will see the company offering 15 electric vehicles in China starting in 2019. GM (NYSE:GM) will meet the mandates by offering five crossovers, two minivans, and seven SUVs within the next 18 months and will expand to include 18 electric vehicles over the next five years. The company has disclosed that it is purchasing battery cells at $145 per kWh with a vision to bring pricing below $100 per kWh. Battery cells are packaged to form battery modules, which are then managed by an intelligent battery management system. In 2016, sales of electric vehicles reached a total of 336,000 units and it is estimated to increase to 800,000 in the next few years. China, in the near future, will be the largest global market for new energy vehicles.
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https://seekingalpha.com/article/4136992-lith...m-industry
Jan. 11, 2018 1:18 PM ET
Chinese government mandates 8% new energy vehicles in 2019; 10% 2020.
Battery manufacturers have moved to increase output to meet growing demand.
Tight supply of lithium carbonate has increased prices in China to $18,000 T LCE.
Chinese companies have moved to acquire lithium assets in Argentina to secure supply.
Looking to 2018 and beyond, it is clear that China will play a critical role in advancing the electric vehicle industry as the political landscape is forcing a change within the automotive industry. At the highest level, the government continues to implement policies that will force automakers to offer electric vehicles or purchase credits from other automakers to ensure they are compliant with new standards. These policies have activated a number of events throughout the supply chain, which are assisting to shape the demand for various components required for the building of the lithium batteries that are now in high demand. In December 2017, the Chinese government extended a credit that returns up to 10% of the purchase price back to buyers.
The policy shift towards the widespread adoption of electric and plug-in hybrid vehicles in China has begun to place pressure on the lithium supply chain, which has propelled investment in the space. In December 2017, Ford (NYSE:F) announced a major expansion plan that will see the company offering 15 electric vehicles in China starting in 2019. GM (NYSE:GM) will meet the mandates by offering five crossovers, two minivans, and seven SUVs within the next 18 months and will expand to include 18 electric vehicles over the next five years. The company has disclosed that it is purchasing battery cells at $145 per kWh with a vision to bring pricing below $100 per kWh. Battery cells are packaged to form battery modules, which are then managed by an intelligent battery management system. In 2016, sales of electric vehicles reached a total of 336,000 units and it is estimated to increase to 800,000 in the next few years. China, in the near future, will be the largest global market for new energy vehicles.
There are 7 more pages:
https://seekingalpha.com/article/4136992-lith...m-industry
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