Tuesday 5 August 2014

Lithium Sector......Why Investing in REM and BCN Makes Sense

When BMW start making cars that look as sexy as the i3 powered by a lightweight lithium battery, you just have to take the electric vehicle business seriously. For someone who has spent over 20 years investing and working in the natural resources sector, making the connection between supply and demand is the cornerstone of investment thinking when picking which commodity to back.

 That is why I am backing lithium. Nissan have broken the back of this market, the leaf is the biggest selling highway capable electric car selling over 50,000 units worldwide and has helped spur demand for lithium in the automotive sector.

 I have some personal experience of how technology changes the market in the automotive market. Back in the late 1960's and early 1970's my father was developing catalytic converters and was awarded a US, Japanese and British patent for the use of ceramics in catalytic converters in the 1970's, going on to sell the business he created. He had a vision to make cars clean, he made a lot of money and became very very wealthy off the back of that vision. 

 Over 40 years on, many more people will make millions out of the paradigm shift that is happening in the automotive sector. The vision today is to create vehicles that are less dependant on hydrocarbons for propulsion........its as simple as that and those that will make millions will be those investing, developing and selling materials that sit at the heart of the value chain of this electric vehicle market revolution.

 In the same way catalytic converters realised the vision for smoke free emitting cars. Hybrid electric and full electric vehicles are realising a vision for green fossil fuel free transportation.

 Don't get me wrong as long as we can find oil and make petrol, the market for traditional combustion engines will always be there, but the revolution in lithium demand is here to stay.

 In the same way catalytic converters drove demand for platinum and other speciality metals and components, the electric vehicle market is driving demand for lithium and rare earths.

 The platinum industry has much to thank green minded politicians and innovators like my father for and the lithium mining sector will have much to thank companies like BMW for who are now taking the electric vehicle market to a new upmarket and mass market customer base.

 Its a no brainer. Just look at the list of cars below being developed using battery component technology, then just think of the impact on lithium demand. 

 If you want some evidence of why the lithium market is THE place to be at the moment, then take a look at Western Lithium WLC:TOR, the shares are up 351% so far this year.

 If you are in the UK and want to invest in London quoted lithium play you can really only invest in Rare Earth Minerals REM:AIM and the recent AIM listed Bacanora Minerals BCN:AIM.

 Rare Earth Minerals have a 30% interest in the Suaz Lithium project in Mexico which looks very promising. REM also have 5.45% stake in Bacanora who in turn have significant lithium projects under development in Mexico.

 The automotive sector is the BIG BIG driver of lithium demand.......evidence of that demand is listed below. But finally

 Its BMW..........When the Germans get involved in electric vehicles, you know the market is about to take off..........and so will Lithium stocks. I always back the German's to score and that is why you should back lithium to score some goals in your investment portfolio.

Full-sized cars

Cars and utility trucks of normal size and capable of 100 km/h (62 mph) highway speed that are currently available.

  • Bolloré Bluecar operates as part of the Autolib' carsharing in Paris that began service to the general public in December 2011. The Bluecar was the top selling highway-capable electric car in France in 2012.
  • BMW i3 - Retail sales began in Europe in November 2013. The electric car is available with an optional gasoline-powered range extender that increases the range from 130 to 160 km (80 to 100 mi) to 240 to 300 km (150 to 190 mi). The U.S. release is scheduled for the second quarter of 2014.
  • Chevrolet Spark EV - The Spark EV was released in the U.S. in selected markets in California and Oregon in June 2013. GM also plans to sell the Spark EV in limited quantities in Canada, South Korea and select European markets.
  • Fiat 500e - Deliveries began in California in July 2013.
  • Ford Focus Electric - U.S. Deliveries for fleet customers began in December 2011 and to retail customers in May 2012.
  • Honda Fit EV - Production will be limited to only 1,100 units over the first three years. Deliveries to retail customers in the U.S. began in July 2012 and availability is limited to California and Oregon.
  • Kandi Technologies KD5011 - Pure EV, currently in production and sales in China. Nine other EV models by the manufacturer approved for sale in China.
  • Mitsubishi i MiEV, launch in 2009, is available Asia, Europe and the Americas, lithium-ion battery pack with 130 kilometres (80 mi) range, and a top speed of 130 kilometres per hour (80 mph). The i MiEV was the first electric car to sell more than 10,000 units, including the models badged in Europe as Citroën C-Zero and Peugeot iOn. According to Guinness World Records, the record was reached on February 2011, but several months later, the Nissan Leaf overtook the i MiEV as the best selling all-electric car.
  • Nissan Leaf introduced in the United States and Japan in December 2010, followed by several European countries throughout 2011 and 2012. and available in in 35 countries as of January 2014. The Leaf is the world's top selling highway-capable all-electric car ever, with global sales of over 100,000 units by mid January 2014, capturing a 45% market share of worldwide pure electric vehicles sold since 2010.
  • Renault Fluence ZE, introduced in Israel in 2011 and to be introduced worldwide in 2012.
  • Renault Zoe, retail customer deliveries began in limited number in France in December 2012. With cumulative sales of 4,442 units through September 2013, the Zoe is the top selling all-electric car in France accounting for registrations since 2010.
  • Smart ED, available for leasing in the United States since early 2011. Originally converted by Zytek from 100 Smart Fortwos. Now on sale the third generation in the U.S. and Europe.
  • Tesla Model S, deliveries of the 85  kW·h premium limited edition model in the U.S. began in June 2012. Since its introduction, cumulative sales in North America reached 12,700 units through June 2013, with most units delivered in the U.S.
  • Wheego Whip LiFe, sales began in the U.S. in April 2011. A total of 34 units have been sold by March 2012.

Microcars

Aixam e City & e Coupé

Low-speed vehicles

These vehicles have a top speed less than many highway speeds, and may not be street-legal without restrictions. They are known as quadricycles in Europe and asNeighborhood Electric Vehicles (NEVs) in the US.

  • Renault Twizy Z.E.; a two-seat electric car with a 4 or 13 kilowatts (5.4 or 17.4 hp) electric motor. Top speed is 80  km/h and range is up to 100 km. Launched in Europe in March 2012, became the top selling plug-in electric vehicle in Europe during the first half of 2012 with more than 6,000 units sold in just three months on the market.
  • Columbia ParCar Corp <http://www.parcar.com
  • CityEl three-wheeled EV, produced in Germany.
  • citEcar produced by Road Rat Motors in Gainesville, Florida <http://www.RoadRatMotors.com> with vehicles ranging from 2 to 29 passengers.
  • Dynasty EV a neighborhood electric vehicle
  • Organic Transit ELF a pedal-assisted, electric, velomobile of "tadpole" format. <http://www.organictransit.com/> Manufactured in Durham, North Carolina, USA.
  • EuAuto Mycar manufactured in Southern China, sold in Hong Kong, limited to roads with speed limit at or below 50  km/h
  • Global Electric Motorcars, LLC (GEM) quite common in California.
  • Kenguru - pronounced "kangaroo" is a 4-wheeled 1-person electric vehicle designed for disabled use: with no seat, drivers drive from their wheelchairs, and enter/exit from the rear door (the only door). The maximum speed of the Kenguru is 45  km/h. Steering is via motorcycle-style handlebar or joystick and a 5-inch-diameter steering wheel in a future model. It is designed by Hungary-based company Kenguru Car Ltd, and is currently manufactured in USA by Community Cars, after Kenguru Car Ltd stopped manufacturing the car.
  • Mahindra e2o, launched in the Indian market in March 2013.,[ range of 100 km (62 mi) and a top speed of 80 km/h (50 mph).
  • Miles Electric Vehicles LSVs for fleet and neighborhood use
  • Oka NEV ZEV Low Speed Electric Vehicle made in Russia, sold in USA.
  • Open Since the beginning of this year also sold in Japan as Girasole, with higher speed and wider range as the Open.
  • Star EV a specialist in golf carts who also offers a wide selection of electric vehicles ranging from 2 to 14 passengers. Made by Suzhou Eagle Electric Vehicle Manufacturing Co.,Ltd. in China (www.eagleelectricvehicle.com)
  • Twike three-wheeled EV with pedal assist option. Produced in Germany.
  • Miles XS500 Electric Vehicle Production Electric Vehicle from Miles Electric Vehicles.

Demonstration fleets

Hyundai BlueOn

  • Mini E from BMW, with more than 500 cars leased for field testing in the U.S., the U.K., Germany, and France.
  • BMW ActiveE Field testing in the U.S. began in January 2012, after the Mini E trial ended.Available only in select markets.
  • Toyota eQ/Scion iQ EV - Toyota announced that the iQ EV/eQ production would be still more limited, to about 100 units for special fleet use in Japan and the U.S. only.The first 30 units were delivered to the University of California, Irvine in March 2013 for use in its Zero Emission Vehicle-Network Enabled Transport (ZEV-NET) carsharingfleet. Toyota announced that 90 out of the 100 vehicles produced globally will be placed in American carsharing demonstration projects.

Cars planned for production

Alpha LUJO Electric Vehicle Pty Ltd has a my EV 118 model and is an Australian company with production in China early 2011.

One of the earlier version have passed EEC crash test in early May 2010.
  • Colmach type 1 - Roadster / stainless steel / In development, to be manufactured in Southern California.
  • Callidai Car - A car created by Callidai Motor Works, Chennai, India for wheelchair users - to drive while seated on their wheelchair. This is a Battery powered car and can seat one more passenger besides the driver. Has a maximum speed of 30 Kmph and has a retractable, motorised ramp in the rear to permit entry and exit of driver and passenger. There is a first prototype which will be field tested by a customer. The second and final prototype with better performance should be available in the market in 2013. The price is expected to be about Rs. 3.50 lakhs ex-Chennai.
  • EDay. An Australian designed electric car to be built in China and released in 2012, for less than $10,000
  • Electrovaya plans to sell the Maya 300 a full electric car in Canada and USA by Summer 2009
  • Hybrid Technologies
    • LiV DASH
    • AFS Trinity hybrid prototype is a modified Saturn Vue, estimated cost $33,000-40,000.
  • Hyundai BlueOn will be launched in South Korea late in 2012, with just 2,500 units.
  • Lightning Car Company is currently developing its eponymous Lightning based on a pre-existing internal combustion-powered sports car, and plans to use NanoSafe cells and Hi-Pa Drive in-wheel motors.
  • Mass-EV is developing in Reading, UK by Turbo Electric Ltd. This car is targeted to be on sale 2011 at a price of £7,000 to the public and charges directly from the UK socket. Roughly the size of a Ford Focus C-Max, will do in excess of 100 miles and motorway speeds. With trailer generator was projected to travel in excess of 500 miles on one tank of petrol.
  • Phoenix Motorcars based in Ontario, California, plans to build both a mid-sized SUV and an SUT (Sports Utility Truck) with 130-mile (210 km) range for $45,000 using NanoSafe batteries from Altairnano. 500 cars are planned for delivery in early 2008 to fleet customers. A consumer version is planned for release in late 2008. Over 250-mile (400 km) range version also in development.
  • Rimac Concept One
  • Quimera GT car - scheduled for release in 2012, the first all-electric gt racing car. The car has a top speed of 300  km/h.
  • SIM-Drive - SIM-LEI and SIM-WIL prototypes, 4-seater planned for 2013
  • Subaru Stella Electric Vehicle - Deliveries beginning in Japan in July 2009.
  • Switch Vehicles planned for 2012 delivery as a kit car. Three-wheeled four-seater. Estimated cost $15,000.
  • Tesla Model X - Production was initially scheduled to start by the end of 2013, but later was postponed to commence by late 2014 in order to focus "on a commitment to bring profitability to the company in 2013" and also to achieve their production target of 20,000 Model S cars in 2013.
  • Tesla expects small number deliveries at the end of 2014 with volume production planned for 2015.
  • Veeco RT, a 2 seater reverse trike, planned for 2013 production. Developed in Portugal as a partnership between manufacturer "VE—Fabricação de Veículos de Tracção Eléctrica, Lda. " and the Lisbon Engineering Institute (ISEL).
  • VentureOne Trike with hybrid and EV options. Three-wheeled vehicle registered as a motorcycle in the USA. Not required to be FMVSS tested.
  • Venturi Fétish marketed as the world's first electric sports two-seater. Monaco
  • Volkswagen e-Golf - Retail deliveries in Germany are scheduled to being in the second quarter of 2014.
Posted by at 13:29:00

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)