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The Lithium Revolution

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The Lithium Revolution

The Lithium Revolution

How the shift to clean energy has opened a window of opportunity for energy metals.

“The Lithium Revolution” infographic presented by: Dajin Resources

Commodity investors know that it in recent years, the sector has had a rough ride. Recently, factors such as China’s slowdown have weighed on short-term prices of industrial commodities like fuels and base metals.

However, not all of the energy sector has struggled. The rise of clean energy has continued to gain momentum, which could be a boon for energy metals producers and explorers.

Energy Metals

Simply put, energy metals are metals used in the creation or storage of energy. Here are some examples of energy metals needed to make lithium-ion batteries, which are the storage mechanism of choice for many green energy producers:

Lithium: Lithium is the main ingredient to lithium-ion batteries – the metal’s ions move back and forth to charge and discharge the battery.

Cobalt: Widely used in lithium-ion cathodes

Graphite: The most common anode material for lithium-ion batteries.

Note: Uranium is also used for nuclear power, and copper is fundamental for creating and transporting energy around the world. However, in this infographic we focus on specialty metals.

Electric cars and energy storage for renewable sources have been driving the increases in price and demand for these sectors. Let’s take a look at the specific momentum that has been growing since 2014.

The Momentum

Political and social:
2014

  • Obama reveals clean energy plan: The push will involve more than $1 billion in government funds to back new clean energy and energy efficiency projects along with funding research and development of new energy technologies.
  • Who were the biggest investors in renewable energy in 2014?
    China ($83.3 billion), USA ($38.3 billion), and Japan ($35.7 billion)

2015

  • Volkswagen DieselGate scandal causes uproar, as it becomes clear that millions of the company’s vehicles have cheated emissions tests for years
  • Elon Musk announces a mandate for Tesla Motors to acquire raw materials from the USA when possible.
  • 4,000 people die, each day, of pollution related deaths in China alone.
  • The United States deems lithium as a strategic metal and doesn’t give any statistics of its reserves or production.

Business:
2014

  • Tesla reveals plans to build $5 Billion Gigafactory in the Southwestern US.
  • Tesla announces Nevada as the site of its already-famous Gigafactory project.

2015

  • The 1 millionth electric car is built in September 2015.
  • Report surfaces that Apple plans to ship driverless cars by 2019.
  • Google’s self-driving cars reach the milestone of 1 million miles driven autonomously.
  • Tesla takes $800 million in orders for its new home batteries in just two weeks.
  • A TSX-V traded company was the most recent recipient of an off take agreement to supply Tesla with Lithium Hydroxide.
  • Volkswagen’s stock price gets crushed over 30% in the aftermath of DieselGate.
  • FMC recently announced an “across the board 15% increase in price” in all finished lithium products. Lithium Hydroxide rose from $9,500 per ton, up to $10,870. Lithium Carbonate from $6,500 per ton up to $7,475 USD.

General Trends:

  • Charging stations have increased rapidly around the world.
  • Every major auto manufacture has more than one fully electric car. Some automakers mandate is to have an electric version of every model.
  • The oil price has hit a 6.5 year low, yet electric vehicle sales have held momentum.
  • Lithium battery manufacturing costs are dropping in price while lithium battery technology is getting better.
  • New technology is decreasing the charge time for electric cars. Meanwhile, “miles per charge” is rising, and some cars can even recharge wirelessly.
  • There’s a greater interest in looking after the environment with a continued scare of global warming.
  • Wind and solar storage needed to regulate output of electricity back to the grid.
  • China is a nation now giving priority to EV cars on their highways and parking lots.

Green Shift

The above momentum means energy metals like lithium could continue to buck the general trend of global commodities. So far, the price of lithium has increased steadily since 2011.

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Energy

Tesla is Now the World’s Most Valuable Automaker

Thanks to a surging stock price, Tesla is now the world’s most valuable automaker – surpassing industry giants Toyota and Volkswagen.

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tesla most valuable automaker

Tesla is Now the World’s Most Valuable Automaker

Even in the midst of a pandemic, Tesla continues to reach new heights.

The company, which began as a problem-plagued upstart a little over 15 years ago, has now become the world’s most valuable automaker – surpassing industry giants such as Toyota and Volkswagen.

This milestone comes after a year of steady growth, which only hit a speed bump earlier this year due to COVID-19’s negative impact on new car sales. Despite these headwinds, Tesla’s valuation has jumped by an impressive 375% since this time last year.

How does Tesla’s value continue to balloon, despite repeated cries that the company is overvalued? Will shortsellers declare a long-awaited victory, or is there still open road ahead?

Tesla’s Race to the Top

Earlier this year, Tesla hit an impressive milestone, surpassing the value of GM and Ford combined. Since then, the automaker’s stock has continued it’s upward trajectory.

Thanks to the popularity of the Model 3, Tesla sold more cars in 2019 than it did in the previous two years combined:

tesla auto deliveries by quarter

As well, the company is taking big steps to up its production capacity.

Austin, Texas and Tulsa, Oklahoma are currently rolling out the incentives to attract Tesla’s new U.S.-based factory. The company is also increasing its global presence with the construction of Giga Berlin, it’s first European production facility, as well as completing the ongoing expansion of its Giga Shanghai facility in China.

Battle of the Namesakes

Tesla’s most recent price bump was fueled in part by a leaked internal memo from Tesla’s CEO, Elon Musk, urging the company’s staff to go “all out” on bringing electric semi trucks to the global market at scale.

It’s time to go all out and bring the Tesla Semi to volume production.

– Elon Musk

Of course, Musk’s enthusiasm for semi trucks isn’t coming from nowhere. Another company, Nikola (also named after famed inventor Nikola Tesla), is focused on electrifying the two million or so semi trucks in operation in the U.S. market.

Although Nikola has yet to produce a vehicle, its market cap has surged to $24 billion – which puts its valuation nearly on par with Ford. Much like Tesla, the company already has preorders from major companies looking to add electric-powered trucks to their delivery fleets.

For major brands looking to hit ESG targets, zero-emission heavy-duty trucks is an easy solution, particularly if the vehicles also live up to claims of being cheaper over the vehicle’s lifecycle. The big question is which automaker will capitalize on this mega market first?

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Energy

6 Ways Hydrogen and Fuel Cells Can Help Transition to Clean Energy

Here are six reasons why hydrogen and fuel cells can be a fit for helping with the transition to a lower-emission energy mix.

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Hydrogen and fuel cells

While fossil fuels offer an easily transportable, affordable, and energy-dense fuel for everyday use, the burning of this fuel creates pollutants, which can concentrate in city centers degrading the quality of air and life for residents.

The world is looking for alternative ways to ensure the mobility of people and goods with different power sources, and electric vehicles have high potential to fill this need.

But did you know that not all electric vehicles produce their electricity in the same way?

Hydrogen: An Alternative Vision for the EV

The world obsesses over battery technology and manufacturers such as Tesla, but there is an alternative fuel that powers rocket ships and is road-ready. Hydrogen is set to become an important fuel in the clean energy mix of the future.

Today’s infographic comes from the Canadian Hydrogen and Fuel Cell Association (CHFCA) and it outlines the case for hydrogen.

6 Ways Hydrogen and Fuel Cells Can Help Transition to Clean Energy

Hydrogen Supply and Demand

Some scientists have made the argument that it was not hydrogen that caused the infamous Hindenburg to burst into flames. Instead, the powdered aluminum coating of the zeppelin, which provided its silver look, was the culprit. Essentially, the chemical compound coating the dirigibles was a crude form of rocket fuel.

Industry and business have safely used, stored, and transported hydrogen for 50 years, while hydrogen-powered electric vehicles have a proven safety record with over 10 million miles of operation. In fact, hydrogen has several properties that make it safer than fossil fuels:

  • 14 times lighter than air and disperses quickly
  • Flames have low radiant heat
  • Less combustible
  • Non-toxic

Since hydrogen is the most abundant chemical element in the universe, it can be produced almost anywhere with a variety of methods, including from fuels such as natural gas, oil, or coal, and through electrolysis. Fossil fuels can be treated with extreme temperatures to break their hydrocarbon bonds, releasing hydrogen as a byproduct. The latter method uses electricity to split water into hydrogen and oxygen.

Both methods produce hydrogen for storage, and later consumption in an electric fuel cell.

Fuel Cell or Battery?

Battery and hydrogen-powered vehicles have the same goal: to reduce the environmental impact from oil consumption. There are two ways to measure the environmental impact of vehicles, from “Well to Wheels” and from “Cradle to Grave”.

Well to wheels refers to the total emissions from the production of fuel to its use in everyday life. Meanwhile, cradle to grave includes the vehicle’s production, operation, and eventual destruction.

According to one study, both of these measurements show that hydrogen-powered fuel cells significantly reduce greenhouse gas emissions and air pollutants. For every kilometer a hydrogen-powered vehicle drives it produces only 2.7 grams per kilometer (g/km) of carbon dioxide while a battery electric vehicle produces 20 g/km.

During everyday use, both options offer zero emissions, high efficiency, an electric drive, and low noise, but hydrogen offers weight-saving advantages that battery-powered vehicles do not.

In one comparison, Toyota’s Mirai had a maximum driving range of 312 miles, 41% further than Tesla’s Model 3 220-mile range. The Mirai can refuel in minutes, while the Model 3 has to recharge in 8.5 hours for only a 45% charge at a specially configured quick charge station not widely available.

However, the world still lacks the significant infrastructure to make this hydrogen-fueled future possible.

Hydrogen Infrastructure

Large scale production delivers economic amounts of hydrogen. In order to achieve this scale, an extensive infrastructure of pipelines and fueling stations are required. However to build this, the world needs global coordination and action.

Countries around the world are laying the foundations for a hydrogen future. In 2017, CEOs from around the word formed the Hydrogen Council with the mission to accelerate the investment in hydrogen.

Globally, countries have announced plans to build 2,800 hydrogen refueling stations by 2025. German pipeline operators presented a plan to create a 1,200-kilometer grid by 2030 to transport hydrogen across the country, which would be the world’s largest in planning.

Fuel cell technology is road-ready with hydrogen infrastructure rapidly catching up. Hydrogen can deliver the power for a new clear energy era.

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