Electric Cars May Take an OPEC-Sized Bite From Oil Use says Bloomberg Markets

Like we didn’t know what we were doing would work!

by Jessica Shankleman

December 3, 2016 — 1:00 AM EST

Consultant says EVs may curb demand by 2 million b/d in 2035

Global gasoline demand has all but peaked, says the IEA

A boom in electric vehicles made by the likes of Tesla Motors Inc. could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd.

While battery-powered cars and trucks today represent less than 1 percent of total vehicle sales, they are expected to take off after 2025 as governments move to tackle pollution and costs fall, the Houston-based analyst said. By 2035 so-called EVs may remove 1 million to 2 million barrels a day of oil demand from the market — in the range of the production cut OPEC and its allies agreed this week in order to end a three-year crude surplus.


“Anything that reduces the demand for transportation has an impact on the oil market,” Alan Gelder, vice president of refining, chemicals and oils markets at Wood Mackenzie, said in an interview in London. “The question is how big is it going to be and what’s the time frame.”

For the entire dtory on Bloomberg Markets

Tesla And Other Tech Giants Scramble For Lithium As Prices Double 

Demand for lithium—the hottest commodity on the planet and the only commodity to show positive price movement in 2015—is poised to continue on its upward trajectory, becoming the world’s new gasoline and earning the moniker of “White Petroleum”. And the battle for market share in and around this commodity has everyone from major tech players to trend-setting investor gurus vying for a foothold. 

Driven by the rise of battery gigafactories and game-changing Powerwall and energy storage businesses, the world now finds itself at the beginning of a lithium super cycle that is all about securing new supply, much of which is poised to come from lithium superstar Argentina. 

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We have Tesla in the far corner, building its battery gigafactory in Nevada, for which it needs tons of lithium at a reasonable price, and just last week Tesla announced its plans for the Model 3, which has already hit over 300,000 pre-orders. To give you an idea of just how meaningful this is, Tesla produced less than 50,000 cars last year. Elon himself mentioned during the unveiling that Tesla will be gobbling up much of the world’s lithium supply with plans to produce 500,000 EVs per year. “In order to produce a half million cars per year…we would basically need to absorb the entire world’s lithium-ion production.” Remember – this is one man, one company. Tesla’s soon-to-be-completed gigafactory will produce more lithium-ion batteries than the rest of the world combined. 

And opposite Tesla, we have some other major players shifting gears that will affect the lithium space. 

Chinese billionaire Jia Yueting is stepping onto Tesla’s playing field with its own electric car start-up, Faraday Future, and Apple is planning one too, by 2019. Through its Alphabet holding company, Google is also getting into the game with plans for a self-driving car. 

They are fighting it out not only to be the first to capture the most electric vehicle market share and the best engineers, but they are getting down to the core of this arena, which is lithium—the key element that will make it all work. 

This is D-Day for lithium miners, and it’s all about new entrants to a space that is about to change exponentially. Big investors are definitively standing up and taking notice—and even jumping into the game. 

One of Canada’s most noteworthy investors in the mining sector, Frank Giustra, is the latest to see lithium for what it is—the single-most valuable commodity of our tech-driven future, and one that is already in short supply. 

The investor extraordinaire with a focus on big mining deals has thrown his support behind Lithium X which is exploring in the key “Lithium Triangle” area of Argentina and is the largest land holder in Nevada’s Clayton Valley, the only producing lithium area in the entire United States. Lithium X has over 15,000 acres in Clayton Valley, near Albermarle’s Silver Peak mine, the only American lithium producer right now, and about three hours from Tesla’s gigafactory. 

“Right now, there is a lot of ‘smart money’ getting in on the lithium land rush, and a mining legend like Giustra would never have been late to this party in Nevada—but the big attraction is our lithium plays in Argentina, which is ground zero for the commodity in South America,” Lithium X Chairman Paul Matysek told Oilprice.com. 

“At the end of the day, Frank, likes to get involved in a project if he sees a massive shift in an industry’s fundamentals,” Matysek added. “Lithium— is certainly showing all the right signs!” 

Floored by the ‘White Petroleum’ Fundamentals 

The fundamentals here are impressive, and the catalysts for lithium prices are spectacularly clear—all of which is pushing prices up and creating an aggressively competitive playing field that is likely to see a lot of acquisition talk. 

There are plenty of reasons to be bullish about what Goldman Sachs calls the “new gasoline” that will fuel our technology-driven resource era. 

IMG URL: http://cdn.oilprice.com/images/tinymce/2016/Copy%20of%20lithiumx1204.jpg 

According to The Economist, the ”global scramble to secure supplies of lithium by the world’s largest battery producers, and by end-users such as carmakers”, among other things, has seen the price of lithium carbonate imported to China more than double just in November and December of last year alone, when it reached an amazing $13,000 per ton. Some contracts in China, according to Bloomberg, have seen over $23,000. 

There is no denying that this is a euphorically tight market, with demand rising steadily and expected to spike drastically, and suppliers struggling to keep pace—which means that the door for new lithium supplies is wide open and this is now a fast-paced exploration and exploitation game. 

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And even without the battery gigafactories, a Powerwall and storage revolution or streets lined with electric vehicles—demand for lithium would still remain steady just to keep up with consumer electronics. 

For the electric vehicle industry alone, Goldman Sachs predicts that for every 1 percent rise in EV market share, lithium demand will rise by 70,000 tons per year. Furthermore, Goldman Sachs predicts that the lithium market could triple in size by 2025 just on the back of electric vehicles. 

The Hunt for Lithium Is On… 

The lithium that is currently being mined quite simply is not enough to put a dent in the projected demand dictated by our hunger for consumer electronics and the pending energy revolution. This means that the new market is all about new players. 

Right now, most of the world’s lithium comes from Australia, China and the “Lithium Triangle” of Argentina, Chile and Bolivia. In North America, Nevada is the only player in this game, but more to the point, the U.S. state has the best lithium there is to have—lithium found in the brine. 

Lithium sourced from brines, or salt water, is the most cost-effective on the market, and sourcing enough of it right at home would be a coup for all sides in the battery, storage and EV game. 

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And while lithium has traditionally been controlled by a handful of major global suppliers, spiking demand is changing this landscape drastically. 

The four companies that currently control the lithium space—Albermarle (NYSE:ALB) in Chile and Nevada; SQM (NYSE:SQM) in Chile; FMC (NYSE:FMC) in Argentina; and Sichuan Tianqi in China—are about to make way for the new entrants. 

And when it comes to new entrants, the biggest market share will be scooped up by those who can come up with the most lithium sourced from the brine. That means getting in on the new game in Nevada, but perhaps more importantly, securing positions in the bigger venues, particularly in Argentina. 

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Within the Lithium Triangle, it’s all about Argentina right now. Chile is not granting any new concessions, and opposition in Bolivia has led to a suspension of lithium mining. Argentina has recently announced a deal with creditors to repay debt stemming from the country’s 2001-2002 default, paving the way for Argentina’s return to global financial markets. 

And the Argentina lithium rush is already in full swing, with miners eyeing resources of up to 128 million tons of lithium carbonate. 

Investors have been pouring into this sector, according to Argentine Mining Secretary Jorge Mayoral, who recently noted that “all the big auto makers have been present in Argentina trying to get a foot in lithium development”, including Toyota, Mitsubishi and Posco. 

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For those who come up with the next supply, the industry will come right to them, and the sniffing around has already begun in full force. 

Link to original article:http://oilprice.com/Energy/Energy-General/Tesla-And-Other-Tech-Giants-Scramble-For-Lithium-As-Prices-Double.html 

By James Stafford of Oilprice.com

Crossline on the Green Cars Fort

We are at a point in the evolution of green cars where it is now realistic that at some point in the future, they will be the most widely used car. The quality of these cars is constantly improving and the latest news about these vehicles means we may be closer to the world using predominately environmentally friendly cars than we think.

Electric & Hybrid cars are growing in popularity and even solar powered cars don’t seem as farfetched these days based on the latest news from Ford.

The reasons to buy a green car makes a lot more sense now than it would have 10 years ago. The current batch of vehicles have are more efficient and now have a range of up to 265 miles and are available for as little as $22,000.

Of course, a lot of people don’t have  a green car yet but there is still a lot you can do to have a positive impact on the environment.

For example, car pooling with friends and even leaving your car at home two days a week will reduce greenhouse emissions by an average of two tons per year.

This infographic from Crossline on the Fort explains the progress we are making with environmentally friendly cars and also explains what you can do to help the environment if you don’t have a green car.

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CTEK to develop Wireless Battery Charging

Leading battery charger manufacturer looks to revolutionize the automotive battery charging industry.

Modern vehicles are totally reliant upon their electrical systems, with car manufacturers running everything from GPS navigation to electric power steering, stability control, adjustable suspension systems and so much more from the car’s electrical circuits. Most vehicles also rely on a charged battery to allow vehicle access, so a dead battery can ruin the start to anybody’s day.

With such dependence on the electrical system, the importance of keeping a vehicle’s battery charged and in top condition is crucial to its performance and reliability. This has been recognized for many years, which is why most premium carmakers specify CTEK battery chargers and maintainers to their customers, providing them as approved genuine accessories – some specialized vehicles are even supplied with a CTEK charger as standard equipment.

As the world’s leading automotive battery charger manufacturer, CTEK is always looking for ways to make its products even easier to use. They currently have simple one-button operation, easy-to-connect terminals, battery charge indicators and non-reversible connectors. The next step in this development will be heralded by the advent of wireless power transfer using magnetic resonance, initiating a new era in automotive battery charging.
With an eye to the future, CTEK Corporation has announced a technology and patent license agreement with WiTricity: the industry pioneer in wireless power transfer over distance. The licensing agreement enables CTEK to commercialize WiTricity’s patented technology to create high performance, efficient wireless charging systems for a wide range of battery charging and battery conditioning applications in various automotive and powersports applications.

“CTEK will adopt WiTricity’s technology to revolutionize battery charging by removing the need for cables in a wide range of automotive, industrial and recreational vehicle battery systems, eliminating the need for our customers to plug in,” said CTEK CEO, Jon Lind. “We are excited to be on the forefront of the next generation of battery charging products for consumers and the automotive industry, and look forward to leveraging WiTricity’s ground-breaking technology to bring a new level of convenience and ease of use to market.”

Under the terms of this licensing agreement, CTEK will be able to create wireless charging solutions based on WiTricity technology for a wide range of vehicle battery systems. By providing a flexible and efficient method of wireless power transfer, CTEK will begin to develop a line of products that will bring a new level of convenience and ease to battery charging.

Future applications should make it possible for drivers to simply park over a contact patch in their garage or parking spot, leaving the battery to charge in their absence. Owners who have vehicles for occasional use, such as classic cars or powersports machines that only come out at the weekend, could also take advantage of such a device.

Among the myriad of potential uses for this new technology, emergency vehicles could be among the first to benefit. First responders need their vehicles to start first time, every time, maintaining electrical systems while the vehicle is parked.

Since its founding, CTEK has sold more than 6.2 million battery chargers in 70 countries around the world. CTEK is a trusted supplier to many of the world’s most respected car and motorcycle manufacturers, and has won more than 15 different independent battery charger awards since 2005.

“WiTricity is excited to partner with CTEK, a company that is respected for both its technical prowess and worldwide distribution network,” said WiTricity CEO Alex Gruzen.  “CTEK is a world leader in designing charging systems for a wide range of applications, and has a number of technologies to complement WiTricity’s cutting edge wireless power transfer technology. In addition to its worldwide reach in consumer markets, CTEK is well positioned within Europe to work with WiTricity in providing a variety of customized battery charging solutions for industrial and transportation applications.”

Sources: CTEK and WiTricity

India Lithium-ion Batteries Market to Grow at Over 35% CAGR Till 2020

BURNABY, Canada, February 9, 2015 /PRNewswire

Increasing Demand for Renewable Sources of Energy Coupled With Favorable Government Initiatives for Sustainable Development to Drive Lithium-ion Batteries Sales in India Through 2020

According to the recently published TechSci Research report “India Lithium-ion Battery Market Forecast and Opportunities, 2020” the market for lithium-ion (Li-ion) batteries in India is projected to witness double digit growth at over 35% CAGR during 2015-20. Lower consumer awareness, inadequate investments by companies, and lack of technological innovations curbed the proliferation of lithium ion technology till the past few years. However, rise in technological developments and increasing need for cleaner energy sources have brought Li-ion batteries on the forefront across various industries as well as end-use sectors. As of now, India predominantly depends on China, South Korea and Taiwan for Li-ion batteries since the country does not have indigenous manufacturing operations for these batteries. However, to offset this challenge, companies are planning to start production of advanced Li-ion batteries in India itself.

(Logo: http://photos.prnewswire.com/prnh/20140117/663730)
Under the new policies taken up by the government, adoption of Li-ion batteries is anticipated to grow at a tremendous pace in the coming years. Rising penetration of electric vehicles, substantial investments in clean and renewable energy sources, and the recently launched Make in India campaign are expected to boost the demand for Li-ion batteries in the country through the forecast period. Government of India has launched New Electric Mobility Mission Plan 2020, which projects to have 6-7 million electric vehicles running on Indian roads by 2020. Smart city projects and Green Energy Corridor for power generation from renewable sources would add to the overall installed capacity, thereby increasing the demand for energy storage batteries.

“In the coming years, India is expected to witness substantial investments by various companies to set up their Li-ion battery manufacturing base in the country. Considering the continuous increase in smartphone and electric vehicle penetration in the country, major players like Panasonic and China BAK already have plans to set up their manufacturing units in various parts of the country.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

India Lithium-ion Batteries Market Forecast & Opportunities, 2020” has analyzed the potential of Li-ion batteries market and provides statistics and information on market size, regional analysis for the battery industry. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment decisions. Besides, the report also identifies and analyzes emerging trends along with essential drivers and key challenges faced by the industry.

Source: TechSci Research