SOME INTERESTING FACTS.
This shift, energy storage both in electricvehicles and in ESS is a megatrend that will define the next 100 years.We cannot underestimate the power that highquality, abundant lithium ion batteries in these markets can hold outside ofthe immediate benefits of owning an EV or being able to store and sell powerback to the grid.The wider implications are game changing for theway we live our lives.
This could bring sustainable, renewable power tosome of the poorest countries in the world and eventually bring about 100%pollution-free cities.The technology is now proven and lithium ionbatteries are getting better and cheaper.
The innovation at the pack levels ismaking these cells even more effective.Confidence in the final end product – whetherit’s an EV or an energy storage system – is gaining serious momentum.
The only thing that remains is for the supply tobe there and for the supply chain to scale. The demand side of the equation isno longer a debate.Howmuch extra battery metal supply will be required to feed the megafactories?
They are building a supply chain, an order of magnitudebigger than what has been seen before. Whereas a major battery producer used topurchase say 3,000 tonnes of lithium hydroxide a year, today they are seeking30,000 tonnes a year all in the space of three years. A quite incredible shift.
Benchmark Minerals Battery Megafactory Trackernow stands at 1.1TWh of lithium ion cell capacity by 2028.
This is for plantsthat are already being planned, there are still many more to be announced indue course.However, based on the 1.1TWh of cell capacity,we will need:·
882,000 tonnes of lithium hydroxide·
218,000 tonnes of cobalt·
1.3m tonnes ofgraphite anode
13,000 tonnes of nickel
A great example of what the demand will be. With patience wewill be invited to the greatest party on earth (renewablepower on a grand scale). Receiving big fat pay checks for our financial support,our hard earned dollars have gone in now. To be hopefully pushed back out@10-30 bags (example) in years to come.
What goes around comes around, investors support up andcoming companies in their infant stages (yes without a doubt risk involved). Butwhen the momentum picks up and deals are done, we will all be rewarded. As wetick each box along the way with positive results, we begin to slowly derisk.
Each to their own, always DYOR.
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