From the Wires
Data Shows Lithium Demand is Expected to Double by end of the Decade
FinancialBuzz.com News Commentary
By: PR Newswire
Sep. 14, 2018 09:47 AM
NEW YORK, September 14, 2018 /PRNewswire/ --
Data compiled by Allied Market Research suggests that the global lithium-ion battery market is expected to grow at a compound annual growth rate (CAGR) of 10.8% to reach USD 46.21 Billion by 2022. The increasing application in the electric vehicle industry, growing demand for electronic devices, stringent regulation on pollution levels and the enhanced efficiency of lithium-ion batteries are factors that will drive the growth of the market. Lithium-ion batteries are an alternative to nickel metal batteries and have gained more traction due to their small size and lightweight. Blue Eagle Lithium Inc. (OTC: BEAG), Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), BHP Billiton Limited (NYSE: BHP), FMC Corporation (NYSE: FMC)
According to another report published by Roskill, lithium demand from automotive applications is expected to reach more than 34,000t LCE in 2017 and is expected to more than double by the end of the decade. The report indicated that the capacity of lithium-ion batteries in automotive applications is expected to exceed 1TWh in 2027. The supply of raw material lithium also changed in 2017. Production capacity is increasing as raw material availability for mineral conversion facilities has improved. Refined lithium capacity reached 340ktpy LCE in 2017. Most of the capacity came from China-based mineral conversion facilities and lithium brine operations in South America.
Blue Eagle Lithium Inc. (OTCQB: BEAG) last week, the Company announced breaking news that it, "is pleased to provide a detailed overview on its initial property. The Company's Property covers 4,000 acres (1,619 hectares) within Railroad Valley, Nevada, approximately 100 miles (161 km) northeast of Tonopah, Nye County, Nevada and can be accessed directly from U.S. Route 6. Railroad Valley is one of the largest trapped drainage basins in North America and was first identified as Lithium rich by the US Geological Survey with the potential to host lithium-bearing brines in its extensive subterranean aquifers beneath the valley floor.
As an enclosed, fault-bounded basin valley, centered by a dry lakebed (aka playa) with significant amounts of evaporation and with documented soil samples containing elevated concentrations yielding up to 500 ppm Li2O, Railroad Valley exhibits all the major ingredients for a potential Lithium discovery. The Company's property marks its first move into the lithium-rich region of Nevada. (Further details on the Property can be found at: http://www.blueeaglelithium.com/projects).
Railroad Valley fits the current geological model and understanding of lithium brine deposit occurrences, (as defined by US Geological Survey Open File 2013-1006), and is considered analogous to nearby Clayton Valley, which hosts North America's only Lithium producing mine owned by Albemarle Corp and in production since 1966. Furthermore, the Company's highly prospective green-field brine target area features many of the similarities to Clayton Valley and it believes that an extensive exploration program is warranted.
Within Railroad Valley, the Company's Property is focused within the deep Southern Gravity Low and within the zone of high electrical conductivity. Unlike Clayton Valley, however, this region of Railroad Valley is a relatively unexplored virgin resource that offers opportunities to expand its footprint without competition for water rights and fractious competition from established companies. Furthermore, the size of Railroad Valley is significantly larger than that of Clayton Valley, thus offering the Company substantial potential upside as it progresses forward.
Railroad Valley is essentially the only oil and gas region of any consequence in the state of Nevada. It was home to the first oil and gas field discovered in Nevada, one of the most productive wells in United States history, still in production today. As a result of its historic activity, hundreds of well logs and seismic data are available to provide clues to the basin's structure and geologic picture in light of current lithium brine-formation theories. Many of the wells drilled have penetrated brines, but very few have been analyzed for Lithium. The presence of this data is unique to Railroad Valley and offers a distinctive advantage for a discovery over other prospective Lithium projects, including those within Clayton Valley.
Blue Eagle's Railroad Valley Property highlights include:
"I am incredibly optimistic about the opportunities that lay ahead with this property," commented Blue Eagle's founder and CEO, Rupert Ireland. "When we look at the general surface sampling in Railroad Valley that has indicated economically interesting levels of lithium in sediments, and the published maps and geophysical surveys and proprietary surveys that have enabled a fairly detailed structural interpretation of the valley's basin development, we see that these factors are comparable to the geological factors present in the nearby Lithium-producing Clayton Valley. We look forward to completing our initial analysis of available samples and evaluating well logs and seismic data so we can finalize our plan for a groundwater exploration program. Ultimately, our intent is to discover a reservoir of brine within the sedimentary host basin indicating economically viable concentrations of Lithium."
The Company would also like to highlight that a new corporate overview video is available online on its website. Further, the company can confirm that is has completed the required yearly lease renewal payments on the claims to the BLM due August 31st, 2018. Further details highlighting the Company's exploration program and schedule will be released in the near future.
About Blue Eagle Lithium Inc. - Blue Eagle Lithium is a publicly traded (OTCQB: BEAG) Lithium exploration and development company based in Henderson, Nevada. The company is engaged in identifying, evaluating, and developing early-stage lithium exploration opportunities in North America. Blue Eagle's team comprises experienced leaders that represent over 60 years of industry experience in the energy, financial, and geology fields. Blue Eagle has a 100% Working Interest in 200 placer claims in Railroad Valley, Nevada, a highly prospective green-fields lithium brine target in the heart of the Basin and Range geologic province. The staked claims, covering 4,000 acres (~1,619 hectares) over a large portion of Railroad Valley, are ready for the next phase of Lithium exploration."
Tesla, Inc. (NASDAQ: TSLA) its mission is to accelerate the world's transition to sustainable energy. Since its founding in 2003, Tesla has broken new barriers in developing high-performance automobiles that are not only the world's best and highest-selling pure electric vehicles-with long range and absolutely no tailpipe emissions-but also the safest, highest-rated cars on the road in the world. The Company recently reported its second quarter financial results for fiscal year 2018. Second quarter highlights include: Q2 Automotive gross margin increased to 20.6% GAAP and 21.0% non-GAAP; Model 3 gross margin turned slightly positive in Q2, expecting roughly 15% in Q3; Expecting to produce 50-55k Model 3s in Q3; deliveries should exceed that; Major cost restructuring executed in Q2 USD 2.2 Billion of cash and cash equivalents at Q2-end, expected to grow in Q3 and Q4; Capex projection in 2018 adjusted to <USD 2.5 Billion. Tesla aims to increase production to 10,000 Model 3s per week as fast as it can. Tesla believes that the majority of its production lines will be ready to produce at this rate by end of this year, but it will still have to increase capacity in certain places and the Company will need its suppliers to meet this as well. As a result, Tesla expects to hit this rate sometime next year. The Tesla Gigafactory was born out of necessity and will supply enough batteries to support Tesla's projected vehicle demand of 500,000 cars per year by 2018, which will require today's entire worldwide supply of lithium-ion batteries.
NIO Inc. (NYSE: NIO) is a pioneer in China's premium electric vehicle market, founded in November 2014. NIO's mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. Recently, the Bosch Group and NIO signed a strategic cooperation agreement focused on sensor technology, automated driving, electric motor controls, and intelligent transport systems. The signing ceremony took place in Berlin in the presence of German Chancellor, Dr. Angela Merkel, and Chinese Premier, Li Keqiang. NIO began delivering its seven-seater high-performance electric SUV, ES8, to its users in China in June. The vehicle contains key components from Bosch, such as driver assistance systems, control units, sensors and the iBooster electromechanical brake booster. The components will be further developed for NIO's future models. Bosch pursues the aim of sustainable mobility, which is low in harmful substances and does not rely on fossil fuels. Bosch's vehicles are equipped with an internal combustion engine and an electric motor. They can be operated either individually or simultaneously. The integrated lithium-ion battery is charged before the start of a trip, which gives vehicles a longer range than hybrids with motor generators.
BHP Billiton Limited (NYSE: BHP) is a world-leading resources company. Twelve months ago, in advance of the Company's full year results for the 2017 financial year, an air of cautious optimism was beginning to permeate commodity markets. While many policy and geopolitical challenges remain, some new and others of long standing, happily the global economy has been resilient to this backdrop to date, and has performed well. The result has been a solid price performance by the Company's key commodities. For the year ahead, BHP assess that the directional risks to prices across its diversified portfolio are mixed. BHP anticipates that benchmark prices for steel making raw materials are likely to remain above long-run marginal cost, on average. Within that grouping, metallurgical coal may sustain such a price level deeper into the cycle than iron ore. Quality differentials in both commodities are expected to remain wide, based on durable changes in the operating environment of the Chinese steel industry. The upside and downside risks for oil are balanced. Copper prices remain susceptible to swings in global policy uncertainty. The near-term commodity-specific fundamentals of both the oil and copper markets are sound. Looking somewhat further ahead, EVs are expected to consume around 5% of the world's electricity in 2050, by which time they will constitute around half the fleet and comprise around three-quarters of annual sales. BHP's expectations is that, once the current stability and cost issues are resolved, a nickel-rich lithium-ion 8-1-1 battery will ultimately provide the required energy density and range characteristics needed to power mass-market EV models from the second half of the 2020s.
FMC Corporation (NYSE: FMC), for more than a century, has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products. FMC Corporation recently announced that it will rebrand its lithium materials business as Livent Corporation (pronounced lye-vent) following the previously announced plan to separate FMC Lithium into a publicly traded company. Livent Corporation is one of only a small number of companies with the capability, reputation, and know-how to produce high-performance lithium compounds that are helping meet the growing demand for lithium. "Today's announcement marks another major step in our progress to create two stand-alone leading public companies," said Pierre Brondeau, FMC Corporation Chief Executive Officer and Chairman. "As an independent company, Livent will have the freedom and ability to chart its own course and business strategy. Its leadership and employees will have the flexibility to experiment, thrive and pursue its growth plans with a great new brand. And we are equally excited about FMC's future as one of the largest agricultural technology companies focused on bringing advanced innovation and sustainable solutions to farmers around the world."
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