RETIRE.FUND: Electric car

Showing posts with label Electric car. Show all posts

Friday, November 18, 2011

Jeff Seigel of Energy and Capital, on the Electric Car!

While reading Jeff Seigal's latest blurb I was struck by his comments on recent events in the Electric vehicles market.

Jeff was commenting on the over reaction of the main stream media on a recent electric car fire and mentioned that a Chev Volt was recently hit by a bus and all passengers walked away.

It was his mention of these recent developments that really caught my attention:

Quote:

Here's what the mainstream media has neglected to report:

Developer of electric car networks Better Place, Inc. just closed a $200 million Series C financing, putting the company's new valuation at $2.25 billion.
Nissan now expects cumulative sales of 1.5 million zero-emission vehicles in four years.
Honda will unveil three new electric vehicles at the 2011 Tokyo Motor Show.
Volkswagen has confirmed the 2013 production of the XL1 plug-in hybrid electric. This is the vehicle that boasts 170 miles-per-gallon.
A Citroen electric van has just set a range record of 621 miles on a single charge. This was not in a controlled environment or on some manicured track. The test was conducted on public roads with commercially available batteries (not prototype equipment).
Electrified vehicles are expected to grow at a CAGR of 19.5% between 2011 and 2017.
Nearly 8 million electric vehicle charging locations will be available across the globe in just about five years.
Fifteen electric car models will be available in the United States in just about two years. Today, there are three.

Yes, my friends, that Chevy Volt was on fire. And so is our portfolio, thanks to the rapid development of the electric car market.

The electric car: You can mock it, ignore it or profit from it.

More on electric cars from Jeff Seigal -Colin Powell's Electric Car

Thursday, March 17, 2011

Volvo's New C30 Electric car performs well in Artic conditions!

Image by redgoober4life via FlickrCold weather is the bane of electric cars, or so I've heard from many naysayers (those that don't believe the EV is here to stay). You've heard the arguments! They range from range anxiety to cold weather performance to excessive recharge time etc. etc. These arguments are falling like dominos as the onslaught of electric car manufacturing spreads from California, to China, from Japan to Sweden. Now Volvo, known for making the safest cars in the world, has blasted the cold temperature argument of the naysayers.

Testing it's beautiful, brand new, all electric C30 in artic conditions, Volvo has already knocked down the biggest domino. After this everyone will know that electric cars will no longer be considered the domain of warmer climes. The Artic is a cruel teacher, as this writer can attest from his time spent in the north, but the students at Volvo have learned their lessons very well. 80 to 90 km distance in artic conditions, and that is just the first model.

Click here to watch this northern beauty in action!

Related stories:

Hertz to rent electric cars in Europe
China makes electric vehicles a strategic industry

Friday, January 28, 2011

Lithium investors will prosper in 2011 as EV and energy storage market heats up!

Lithium is one of the most dynamic, useful, and least understood metals. "Metal" as most people know the word, may be a bit of a misconception to investors as this metal, the lightest in the periodic table, can literally be cut with a knife!

Thousands of labs all over the world are working with and studying the properties of lithium at this writing, and the discoveries are lifting this element into a category all its own. On Jan 11th the folks at Argone National Labratory released parts of their study into this wonderous element, and their findings will most likely increase the value of lithium for a number of uses, not the least of which is in the electric vehicle market. See: Lithium surprises!

Here is a brief description of lithium, from Webelements.com

Lithium producers prospering as price, and demand, increases globally.

General Electric is buying 25,000 electric vehicles, from a number of providers, including approx 12,000 Chevrolet Volts from GM.

General Electric wants to own a large chunk of the battery charging market, which is expected to grow expotentially, as the EV and the hybrid electric vehicle, becomes more ubiquitous over the next few years.

How and where to invest in this "second leg" of the Lithium boom!

“One of my top priorities next year is to have an energy policy that begins to address all facets of our over-reliance on fossil fuels,”

Barrack Obama

October 2010:
Goldman Sachs discloses 12.78% ownership of Talison Lithium

Update: Oct 18th:
Our Lithium investments are up 167% in the past 6 weeks!!!

There are four lithium companies currently producing lithium on the world market that can be labelled, essentially, the BIG FOUR. They are:

Salares Lithium stock holders will double their money as Talison Lithium of Australia swallows Salares.

Image by laughlin via Flickr

News: Hertz and Enterprise to rent Nissan leaf starting in January!
This is an update for those of you who took my advice and bought Salares Lithium in early July for around .60 cents per share. While their is a current hold on trading this stock (LIT-TSX-v) it is by no means a time to worry. It is a time to rejoice, because you have just doubled your money, at the very least. Here's why!
About Salares Lithium Inc.
Salares Lithium Inc. is a lithium explorer in Chile that controls the 'Salares 7' lithium project made up of seven salars (brine lakes that are prospective for sub-surface lithium and potassium) and the surrounding concessions in Region III, Chile. Five of the seven salars are clustered within 155 kilometres and are 100% owned by Salares and its Chilean partner.
About Talison Minerals Pty Ltd
Talison Minerals Pty Ltd is the leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.(Talison produces over 65% of the current lithium being imported by China)
Talison and Salares are merging into what will be the largest pure lithium producer on the planet, and the "only pure lithium production company" to be listed on the TSX (not the venture exchange). That will occur on Sept 17th.
I have spoken with Salares CEO Todd Hilditch and company consultant, Matt Johnston who assures me that the new company (he will provide the stock symbol in the next few days) will strike somewhere between $3.50 and $4 per share when it is launched on TSX in September. At that time, Salares share holders will own 1 share of the new entity for every 2.81 shares they hold of Salares Lithium (LIT)
With a price cap between $340M and $350M, this equates to approximately 35.6 % of the new entity will be owned by current Salares shareholders which should return approx $1.25 per share, or more to those of you who took my advice 3 weeks ago.
If the TSX-v allows trading in Salares over the next few weeks, I will not part with many of my own shares. (of course I will take profit on a portion - maybe 15-20%) as I see this as a strong, bullish move for our holdings.
The new company will be the only lithium producer listed on the TSX at a time when the electric car market is gaining momentum, and new lithium ETF's are popping up on the NYSE.

The Global X ETF will have no choice but to list the new company as the largest pure lithium supplier into China. If you invest you should do so "before" this occurs.

The combined company will have to be included in the new Lithium ETF's, as a front runner in the lithium space supplying the huge Chinese market and developing the huge Salares 7 project that Salares Lithium brings to the merger table.

When the new entity launches on Sept 17th on TSX, look for the strike price to pop. There is no way this stock will stay under $4 per share after it is launched. We think this new company will be a home run.

Your welcome folks, and here's to your retirefund.
HP

BNN interview with Salares CEO Todd Hilditch

Thursday, July 15, 2010

SALARES LITHIUM AND TALISON ANNOUNCE MERGER TO CREATE WORLD’S LARGEST LITHIUM PRODUCTION COMPANY

Opel To Reveal Ampera Electric Car At Geneva M...

Image by gmeurope via Flickr

Salares and Talison also announce a
CAD$40 Million Private Placement to Fund Growth

Highlights
• Combination of the world’s largest, high quality, low cost lithium producer located in
Australia with a prospective, large scale brine exploration portfolio in Chile

• Unique exposure to both mineral and brine sources of lithium, with the ability to
respond to the growing demand for lithium for electric vehicle batteries

• Board and management teams with complementary skills and extensive experience

• Fully subscribed private placement of CAD$40 million to fund growth

VANCOUVER, July 15, 2010 – Salares Lithium Inc. (TSXV: LIT) (“Salares”) and Talison
Minerals Pty Ltd (“Talison”) are pleased to announce that they have executed a binding letter
agreement (“Letter Agreement”)to combine their respective lithium assets and create the
world’s largest, publicly traded lithium production and exploration company.
The merger will combine Talison’s world class lithium minerals production in Australia with
Salares’ prospective, large scale lithium brines exploration project in Chile. Upon completion of
the proposed transaction, the combined entity will be well-funded, allowing for immediate
expansion of the producing Australian operations to run in parallel with an accelerated
exploration program at the Salares brine projects.
Immediate production expansions at Talison’s Australian operations are required to satisfy
substantial growth in lithium demand from Chinese battery producers, for whom Talison is the
primary supplier. This demand has been driven by government policies encouraging alternative
energy vehicles in pursuit of energy security, reduced reliance on oil imports and environmental
objectives. Additional large scale production expansion is also being pursued by Talison to
meet the anticipated global growth in the lithium market.
Salares’ Chairman David Shaw said today: “The merger of Salares with Talison will create a
unique lithium company with exposure to both lithium minerals and lithium brines, building on
the strong foundation of both companies to continue growing and delivering value for
shareholders.”

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES

2. Talison Chairman Peter Robinson stated: “Talison isalready the largest lithium producer in the
world and the largest supplier of lithium concentrates into the growing Chinese market. The
merger with Salares will offer shareholders exposure to substantial growth opportunities for the
potential production of lithium carbonate from lithium brines as well as from lithium minerals, to
satisfy the demand for lithium products destined for the global electric vehicle market.”

The Boards of Salares and Talison believe the benefits of the merger are compelling, with:

– An attractive diversified mix of lithium mineral and brine assets in both Australia and Chile:

o Combination of the high quality, low cost Australian based lithium minerals
production with promising lithium brines exploration properties located in Chile;

– Multiple actionable growth strategies, including:
o Expansion of existing lithium mineral production capacity by over 60% (currently
in progress) to support the growing Chinese battery market, with demand from
existing customers for over 90% of additional capacity;

o Potential low cost lithium carbonate production from minerals conversion to
supply major battery producers and vehicle manufacturers globally; and

o Future potential lithium carbonate production from prospective Chilean brines;

– Access to an extensive global customer network, established over a 25-year lithium
operations history, with the leading position in the growing Chinese battery market; and

– Board and management teams with complementary skills and extensive experience in the
technical and commercial aspects of project development, production and marketing
lithium.

The market dynamics for lithium are positive. Lithium demand has grown consistently over the
past decade and is expected to accelerate significantly in the near term from increased
consumption of lithium batteries, which are a critical component of hybrid and electric vehicles.
The board of directors of both Talison and Salares unanimously support the proposed
transaction. Salares management and directors (together representing 7.43% of Salares
shares on a fully diluted basis) have agreed to enter into lock-up agreements to support the
transaction.

Merger Proposal
Under the terms of the proposed transaction, which is to be structured as a plan of
arrangement (“Plan of Arrangement”) under the British Columbia Business Corporations Act, it
is anticipated that common shares of Salares will be exchanged for ordinary shares of Talison1
on the basis of 2.81 Salares shares for one Talison share. All outstanding options and warrants
of Salares will be assumed by Talison, and exercisable in accordance with their terms for
Talison shares.
Upon completion of the Plan of Arrangement, existing Salares and Talison shareholders will
own 20% and 80%, respectively, of the combined company (on a fully diluted basis), prior to
the conversion of the Subscription Receipts issued under the CAD$40 million Private
Placement (as described below).
1 It is proposed that, prior to the Plan of Arrangement, the Talison Minerals corporate group will be re-organized to,
among other things, separate the tantalum business and to place a new Australian company, Talison Lithium
Limited, on top of the corporate group. References to "Talison shares" are references to fully paid, ordinary shares
in the capital of Talison Lithium Limited, and references to securities in Talison are references to securities in Talison
Lithium Limited.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES
3
Based on a price of CAD$3.50 per Talison share, the terms of the proposed transaction provide
Salares shareholders with a premium of approximately 98.2% (equal to CAD$1.25 per Salares
share) based on the trailing 20 day volume weighted average price for Salares shares on the
TSX Venture Exchange.
Corporate, Board and Management Structure
Following completion of the Plan of Arrangement, the merged group will be known as Talison
Lithium Limited (“Talison Lithium”) and will have offices in Perth, Australia and Vancouver,
Canada.
Mr Peter Robinson and Mr Peter Oliver, the Chairman and CEO of Talison, respectively, will be
Chairman and CEO of Talison Lithium. It is proposed that David Shaw will join the Board of
Directors of Talison Lithium, and will also act as a consultant to Talison Lithium in connection
with the supervision of the ongoing exploration programs for the mineral properties of Salares.
Todd Hilditch, current President and CEO of at Salares, will direct the investor relations
program at Talison Lithium.
Anticipated Merger Timetable and Process
The Letter Agreement sets out the terms upon which the proposed merger will be implemented,
and proposes for the parties to enter into a definitive arrangement on or before August 9, 2010.
Under the Letter Agreement, both Salares and Talison have agreed to pay the other party a
break fee of approximately CAD$1 million in certain circumstances.
The Plan of Arrangement is anticipated to be implemented by the end of September, 2010,
subject to obtaining all necessary approvals and satisfaction of other conditions.
The proposed merger is subject to a number of conditions including:
– Completion of a CAD$40 million Private Placement (as described below);
– Approval of the Plan of Arrangement by Salares’ shareholders;
– Approval by the Toronto Stock Exchange (“TSX”) to list Talison Lithium, subject to
customary conditions;
– Receipt of all applicable regulatory approvals, orders, notices and consents including: in
Canada under the Competition Act; the Supreme Court of British Columbia; the Australian
Foreign Investment Review Board; the TSX; and the TSX Venture Exchange;
– Completion of satisfactory due diligence on or before August 9, 2010; and,
– Other customary merger conditions.
Private Placement
In conjunction with the Plan of Arrangement, Salares will undertake a CAD$40 million private
placement (“Private Placement”) of subscription receipts of Salares (“Subscription Receipts”).
Talison’s current major shareholder, Resource Capital Fund (“RCF”)has fully subscribed for
the Private Placement, but at the request of the Agents (as defined below), is willing to scale
back its commitment to permit Subscription Receipts to be offered for sale to other investors.
RCF has also agreed to a 90 day lock up period.
The Private Placement issue price will be based on a deemed price per share in Talison of not
less than CAD$3.50; under the terms of the Plan of Arrangement, this equates to a price of
CAD$1.25 per Salares Subscription Receipt. Upon satisfaction of the Escrow Release
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES
4
Conditions (as described below), Subscription Receipts shall be exchanged into Talison shares
on the basis of 2.81 Subscription Receipts for one Talison share.
The Private Placement will be managed by a syndicate of investment dealers led by Cormark
Securities Inc. (“Cormark” and collectively, the “Agents”) and is expected to close by the middle
of August, 2010.
Upon release from escrow (as described below), it is anticipated that the proceeds of the
Private Placement will be used to fund the growth strategies of the merged group, including:
– Expansion of the existing lithium minerals operations in Australia to increase production
capacity to meet current Chinese demand for lithium;
– Acceleration of the exploration of Salares’ properties in Chile;
– Implementation of a drilling programme at the Australian operations with an objective to
increase and upgrade mineral reserves and resources;
– Initiation of further feasibility studies into developing a lithium carbonate plant using lithium
mineral concentrates from the Australian operations; and
– General corporate and working capital purposes.
The gross proceeds of the Private Placement will be delivered to and held by a licensed
Canadian trust company or other escrow agent (the “Escrow Agent”)mutually acceptable to
Cormark and Salares in an interest bearing account (the "Escrowed Funds").
The Escrowed Funds (plus any accrued interest earned thereon) will be released from escrow
to Salares (after deducting certain expenses payable to the Agents) upon delivery of a notice
(the “Release Notice”) to the Escrow Agent from Cormark, on behalf of the Agents, and
Salares, on or before 5:00 p.m. (Toronto time) on September 30, 2010 (the "Escrow Deadline")
indicating the following conditions (the “Escrow Release Conditions”) have been satisfied:
(a) the implementation of the Plan of Arrangement;
(b) the receipt of all required shareholder and regulatory approvals, including
approval by the TSX; and
(c) the Talison shares to be issued in connection with the Plan of Arrangement and
on exchange of the Subscription Receipts not being subject to any statutory hold
period in Canada.
If the Escrow Release Conditions are not satisfied on or before the Escrow Deadline, the
Escrowed Funds plus accrued interest shall be returned to the holders of the Subscription
Receipts and the Subscription Receipts will be cancelled without any further action on the part
of the holders.
Advisors
Talison has engaged Rothschild and Cormark as its financial advisers and Blake, Cassels &
Graydon LLP and Clayton Utz as its Canadian and Australian legal advisers, respectively.
Haywood Securities Inc. is acting as financial adviser to the special committee of Salares.
Haywood has provided an opinion to the special committee of Salares that, subject to certain
assumptions and limitations set out therein, the proposed transaction is fair, from a financial
point of view to Salares shareholders. Gowling Lafleur Henderson LLP is acting as legal
adviser to Salares. McCullough O'Connor Irwin LLP is acting as legal adviser to the special
committee of Salares.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES
5
A presentation of the transaction highlights can be accessed at the Salares and Talison
websites.
For further information please contact:
Investors
Todd Hilditch
President and CEO
Salares Lithium Inc.
Tel: (604) 443-3831
www.salareslithium.com
Peter Robinson
Chairman
Talison Minerals Pty Ltd.
Tel: +357 2695 6011
www.talisonlithium.com
Media
Kim O’Halloran
Vice President, Corporate Communications
FD
kim.ohalloran@fd.com
Tel: (312) 553-6733
About Salares Lithium Inc.
Salares Lithium Inc. is a lithium explorer in Chile that controls the 'Salares 7' lithium project
made up of seven salars (brine lakes that are prospective for sub-surface lithium and
potassium) and the surrounding concessions in Region III, Chile. Five of the seven salars are
clustered within 155 kilometres and are 100% owned by Salares and its Chilean partner.
About Talison Minerals Pty Ltd
Talison Minerals Pty Ltd is the leading global producer of lithium. Talison mines and processes
the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western
Australia. Talison has an extensive, well established global customer network and a leading
position in the growing Chinese market.
No securities regulatory authority has either approved or disapproved of the contents of this
news release. This press release is for information purposes only.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Not for distribution to U.S. news wire services or dissemination in the United States.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of
the securities in the United States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any
state securities laws and may not be offered or sold within the United States or to U.S. Persons
unless registered under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES
6
Forward-Looking Statements
This release contains “forward-looking statements” which reflect the current expectations of the
companies. These statements reflect management’s current beliefs with respect to future
events and are based on information currently available to management. Forward-looking
statements involve significant known and unknown risks, uncertainties and assumptions. Many
factors could cause actual results, performance or achievements to be materially different from
any future results, performance or achievements that may be expressed or implied by such
forward-looking statements. Should assumptions underlying the forward-looking statements
prove incorrect, actual results, performance or achievements could vary materially from those
expressed or implied by the forward-looking statements contained in this release. Although the
forward-looking statements contained in this release are based upon what the companies
believes to be reasonable assumptions, the companies can not assure investors that actual
results, performance or achievements will be consistent with these forward-looking statements.
These forward-looking statements are made as of the date of this release and the companies
does not assume any obligation to update or revise them to reflect new events or
circumstances.

Thursday, July 8, 2010

Salares Lithium Corp - Conviction Stock pick!

The future is Lithium, and Salares is sitting on huge deposits!

Chile: "The country’s salars are estimated to contain the largest reserves of lithium in the world" ....The United States Geological Survey

Salares Lithium Corp (LIT-TSX)

Location Atacama Desert, Region III, Chile

Highest producing lithium country in the world

Project Size 39,404 Hectares (Largest pure lithium package in peer group)

Mineralization Sample grades up to 1,080 parts per million (non NI43-101)

Lithium - Potassium sampled in all 7 Salares

Proximity - 5 Salares clustered within 155 km. (see location map) 100% owned by the company.

Deposit Type Continental brines. (Lithium is most easily and cheaply recovered from Continental brines than from any other source) Chilean brines account for 50% of the world's lithium production according to the United States Geological Survey

Area Success- Major mining companies in the area include Kinross, Barrick, BHP Billiton and Freeport McMoRan.as well as SQM, the largest lithium producer in the world.

Infrastructure Project location is easily accessible by road.

All services required for a major exploration and mining program are available in Copiapó which is a major mining centre.

Progress NI 43-101 Technical report (Complete) and exploration program initiated.

Advantages

Located in the highest lithium producing country in the world
Largest land package of any company in peer group
5 Salares clustered within 155 km
Grades up to 1,080 ppm lithium
Chile is one of the most mining friendly countries in the world
Rising demand for lithium is expected from the increased use of laptops, mobile phones and hybrid/electric vehicles

"Salares Lithium (LIT-TSX) may be a takeover target of SQM, the largest lithium producer in the world, as SQM recently expressed a working interest in the Salars held by Salares Lithium".

LIT trading at .65 today. Three month Target price of $1.40

UPDATE JULY 15TH!!! SALARES OFFICIALS HAVE REQUESTED A TRADING HALT TO
LIT STOCK AS IT PREPARES AN IMPORTANT PRESS RELEASE!
We are awaiting the results of this information which we think will be very bullish for the stock!

Photos
Location

Update, July 15th 2010 - Salares Lithium swallowed by Talison of Australia, the largest supplier of lithium to China!!

Due to the above noted merger, if you took our advice on July 8th, you will book at least 98% profit!! Your welcome!!

More Lithium Stocks to consider.

Monday, April 12, 2010

Miners with huge lithium and REE deposits !
Could be takeover targets in 2010?

SHENZHEN, CHINA - OCTOBER 14: Visitors view a...

Image by Getty Images via @daylife

Oil circa 1909, plastics circa 1955 and Lithium in 2010. Lithium will store our power generated from wind and solar. It will power electric vehicles and improve hybrid plug-in vehicles. It is starting to power the mobile web (smart phones, iphones, ipads, note books and laptops). Every battery used for electric vehicles will require 8 pounds of lithium! We are now invested in six lithium mining stocks. Here are some of them, and the reasons why!

From Ford to Toyota, GM to Honda, and Nissan to BYD , from China to Chile and everywhere in between, auto companies are searching the globe and scrambling to secure their future supply of this commodity as the electric car is about to re-emerge after a 100 year hiatus.

Lithium is used in lithium-ion batteries, (and many new forms of Lithium batteries such as Lithium air, Lithium sulfur etc) glass ceramics, greases, steel, nuclear energy and pharmaceuticals, however, it is the advent of Lithium use as the best material for energy storage in batteries made for the Hybrid and electric vehicle market, that is causing one of the big bull markets of this decade. From Buses to cars and trucks, and every type of vehicle in between including vehicles such as fork lifts, ATV's, motorized bicycles (as in the billion or so made in China and India) skidoo's, seadoos, and everything else that moves, companies are building better electric batteries for these vehicles, and the overwhelming winner of the commodity race is, you guessed it, LITHIUM!!

Bu

ying into a good Lithium play today would be like investing in oil at the turn of the 20th century, or plastics in the 1950's. It will have that much of an impact as the electric car and hybrid plug-ins become more and more common. The explosion in batteries using Lithium Ion technology, Lithium air technology, lithium sulfur or any number of other Lithium based materials currently being researched and produced is occurring so fast, that fortunes will be made, and indead, are already being made.

Scientists, technicians, engineers and lab rats all over the world, are developing lithium energy storage products at this writing. Lithium carbonate is the best element for storing electricity, period. When compared to current technology such as nickel metal hydride batteries, Lithium is twice as light, produces 3 times the power and keeps it's charge up to 5 times longer. Lithium won't just be used for electric vehicles, hybrids, cellphones and laptops including tablet computers, but also on a larger scale, for wind farms and solar farms where energy storage is absolutely crucial to the future of electrical grid technology.

China, recently announced it will stop shipping Lithium and rare earth enements (REE's) to other countries. China sees an opportunity to try and corner the Lithium market while America and Europe are still fending off financial problems and to this end, it has been trying to butter up the left wing government in Bolivia which may hold 50% of the Lithium deposits on the planet. Problem is, Bolivia is a quagmire of political problems for anyone trying to enter the Lithium market there as the president is not receptive to international companies. He wants to develop Bolivia's Lithium deposits "in country". another problem is that this Lithium deposit, while very large, will be expensive to develop because of the large amounts of magnesium and other compounds in the brine.

Other locations for Lithium mining are in hard rock formations(Canada-Quebec), clay formations (Nevada) and in Salars or salt Lakes. (Besides the big deposits in Bolivia, Chile (which currently supplies 60% of the worlds Lithium), as well as Argentina) It is the extraction of Lithium and Potash from Salars that is the easiest, and cheapest way to mine this very "in-demand" resource.

Toda

y, 60% of all Lithium is produced in the country of Chile!

Chile is really the epicenter of the Lithium boom notwithstanding Bolivia and Argentina, the two other countries that share the Puna Plateau.

The Salar flats of the Andes on the Puna Plateau, contain millions of tons of Lithium carbonate totaling 84% of the worlds known reserves. This Lithium is also the easiest, and cheapest Lithium to extract, as the sun does most of the work, in this, the driest area on the planet.

According to one of the foremost Lithium experts, R. Keith Evans, "Because Mother Nature does most of the work in producing lithium carbonate in this region, it is the greenest source of lithium we know of".

Any other source requires significantly more energy for processing, thus increasing the price." (read hard rock sources) Add to that the fact that Chile recently elected a conservative government that is very friendly to the mining community, and you have the making of a full blown, 5 alarm, bull rush into the Chilean Salar flats by a number of Juniors. Nevada also has similar, but smaller, lithium resources.

Canadian Juniors are leading the way in this boom and they offer the best investment "bang for your buck" so to speak, as investors wake up to the fact that Lithium will power the future of most automobiles. Currently, the top producer of Lithium from the Chilean "Puna Plateau" is Sociedad Quimica y Minera (SQM). To date, their Lithium production has been a by product of the potash which they mine there, and their stock price is already through the roof. In 2010 they are increasing their production of Lithium to meet increased demand worldwide.

Here are our picks in the Lithium junior miner sector, in order, based on the size of deposits identified, and the purity of the Lithium carbonate to be mined.

PURE LITHIUM PLAYS

1.Salares Lithium (LIT-TSX) owns over 117,000 hectares (288,990 acres approx) in the Atacama region of Chile, encompassing 7 Salars (brine lakes). It is one of the best, pure play Lithium ventures anywhere today with a depth of resource between 170 meters and 300 meters in a region that already produces 50% of the worlds current lithium supply. In fact, SQM, the largest producer of lithium in the world today, may actually be interested in some or all of Salares Lithiums concessions due to their close proximity and the purity of the resource.

Salares Lithium wholly owns 100% of 5 of those Salars, which is unique in the industry and very important in South American mining. Many others "share" deposits on the same properties. Salares now has a giant Lithium footprint, as large as anyone on the planet (read the article: Size matters ) They also have a very focused management team and institutional investors are in on this play.Now SQM may be interested.
Analyst opinions on Salares Lithium!

2. Western L ithium (WLC-TSX) owns over 50,000 acres of proven, lithium reserves in Nevada. One of the only Lithium pure plays in the USA with proven reserves. This is one of the worlds largest, proven Lithium deposits at 47 million tons, mine ready, located in mining friendly Nevada with quick access to buyers in North America. Western Lithium should make any lithium investors portfolio. On May 31st Western Lithium will change it's name to Western Lithium USA to more reflect it's intention to supply Lithium to that market. (update- we recently sold our shares in WLC, at a profit of course, to free up cash for the purchase of more Salares Lithium shares)

LITHIUM,GOLD AND RARE EARTH METAL PLAYS

3. The biggest "sleeper" in the space is TNR Gold Corp (TNR-TSX) which is currently flying under the radar of most investors. TNR Owns 16 gold, copper, Lithium, and REE properties in Nevada, Canada, Argentina and Ireland. More importantly, TNR "owns 100% of International Lithium Corp" (ILC) which it will spin off next month in an IPO.

ILC own 9 Lithium brine properties in Argentina, Nevada and Canada, while TNR will retain it's gold, copper and rare earth deposits in Canada and Ireland as well as one Lithium play in Argentina. TNR may actually be the best "short term" play in the sector as it prepares the IPO for International Lithium Corp. as owners of TNR stock will automatically own stock and warrants in International Lithium when it is spun out next month. (one share and one warrant for every 4 shares of TNR) Thereby owning "both" companies after the IPO next month. Institutional Holders of TNR stock include some serious players:

Barrick Gold, Pinetree Capital, Tocqueville Fund, Solitario, and NovaGold.

4. Latin American Minerals Inc. (LAT-TSX) Besides gold, copper and silver, LAT owns a 17.4% stake in Lithium Americas Corp. (LAC) which has a big stake in the Salars on the Argentina side. LAT also owns rare earth properties (REE's). Lithium Americas properties include over 100,000 Hectares encompassing 5 salars (salt lakes) on the Argentina side of the Puna Plateau.You can buy LAT now (currently .20 cents) to own 17.4% of Lithium Americas, (which we have done), or you can buy Lithium Americas (LAC) at the IPO price of $1.80 Strategic Investors in Lithium Americas already include:

Magna International Inc.
Mitsubishi Corporation
PineTree Capital corp.

5. Rodina Minerals (RM-TSX) Besides it's recent acquisitions of Diablillos, Centenario and Ratones in the Salars of Argentina on the Puna Plateau, RM owns a substantial lithium property in Clayton Valley Nevada Rodinia has 100% mineral rights to 50,440 acres in Nevada’s lithium-rich Clayton Valley in Esmeralda County and is currently in the process of assessing the size, quality and processing alternatives of its Lithium Brine Project. Early estimates put the valley’s lithium deposits as high as 700 million kg, ranking it second only in size to the deposits found in Chile.. RM is one of the top Lithium picks of Byron Capital Markets analyst, Dr. Jon Hykawy who is, arguably, one of the foremost Lithium experts in the market today! RM is also a favorite of the gold report.(theaureport.com)

At this writing, all of these stocks can be had for under $1 per share.

There is truly a "fire sale" on these market go-getters who have staked their claim in the Lithium rush of this decade and stand to reap huge rewards for their efforts.

You can invest in the battery companies, (who are battling it out in the technology department) the electric car companies, or the mobile web device makers like Apple, and they are indeed good bets. However, they all need the raw product, and that is Lithium, specifically it is lithium carbonate. The companies listed above with properties in Chile and Nevada, are in the drivers seat as these deposits are already known, are enormous, and will be processed at the lowest cost, because the sun provide most of the energy needed for production, in the driest, most arid places on earth.

The lithium boom will last for at least the next 10 years. As many investors make their fortunes from this 21st century boom, I hope that you are one of them. I certainly intend on being one.
Here's to your retirefund!

H.A. Pelham

May 5th - Lithium production up in 2010
May 18th Nissan reveals new Leaf electric car will be mass produced in 2010.

More about Lithium:
Rick Mills of "Aheadoftheherd.com on Stockhouse.
The Lithium boom Electric Vehicles and the Mobile Web.
Honda unveils zero emission electric scooter
Arctic Sub runs on Lithium-Ion Batteries
New York Buses run on Lithium-Ion Battery
Lithium-Ion Battery used by new U.S. military space craft
Lithium Sulfur Battery will keep plane aloft for 5 years!

Thursday, January 21, 2010

Electric cars vs Fuel Cell cars - the argument for both!

Image by Joi via Flickr

Electric Vehicles - EV's

Electric cars from Tesla Motors to the Chevy Volt, Toyota and Hyundai have been the talk of the investment community for the past 2 years. Lithium players have benefited from the hope of this technology and new Junior miners are jumping into the space looking for fresh Lithium deposits. However, according to John Peterson, the technology itself may not be a viable alternative to the internal combustion engine found in 98% of vehicles today.

John Petersen, an alternative energy expert with a strong background in electric battery technology, makes a very good argument for investors to shy away from the hype and keep a solid foundation in "facts" instead of "hype". I recommend you read this informative article at Seeking Alpha. Once you have read this, and digest the argument, you may no longer wonder "who killed the electric car"! It may be that the electric car killed itself.

However, this begs the question, why is Honda going with it's new fuel cell vehicle? Is Honda's management stupid or has it done due diligence that makes it run in the opposite direction of the herd mentality! Why has Ford contracted with Azure Dynamics to have their electric drive train in Fords new, "Truck of the year".

After all, a herd mentality led to the over production of SUV's in the 1990's. A herd mentality led to every asset and stock market bubble in history, including the meltdown of 2008. Mr. Petersen makes a very strong argument for seeking a contrarian investment strategy when it comes to Electric vehicles replacing the internal combustion engine. Here is our contrarian view.

Fuel Cells

Hydrogen is the most abundant element in the entire universe. When astro physicists send out "signals" into the universe to look for intelligent life, they always include the atomic weight of hydrogen in their message. That is how common this element is. Pure hydrogen is also the best fuel for fuel cells used in cars and buses. There is, however, a problem with storage of pure hydrogen, given it's volatility, however at the outset of the production of the internal combustion engine, volatility of gasoline was also a problem, which was eventually overcome. The production and storage of pure hydrogen will also, eventually, be overcome. Where does that leave the fuel cell industry in the meantime?

Natural Gas is the most abundant and cleanest source of hydrogen today, and it is already in production throughout North America, which houses the largest deposits of natural gas on the planet. That gas has only recently become available in abundance, thanks to the fractionation technology developed to extract it from Shale (Shale gas). Natural gas is also easily utilized in fuel cells and although it doesn't have a neutral effect on the environment as does pure hydrogen, it is a much cleaner fuel that any other fuel available, especially when used in fuel cells.

Fuel cell buses are already on the road and in production at this writing. You will see them ferrying athletes and spectators to the Winter Olympics in February. Fuel cell trucks (running on natural gas and eventually pure hydrogen), fuel cell ships and finally large fuel cell stacks to replace coal fired electric plants. Can a battery do these things?

Natural gas and eventually pure hydrogen fuel cells may be the future of transportation, the future of back-up power and the future of power plants in general. Lithium will power the wireless market and, with advances in technology, may power electric vehicles. North America will lead the way, (China is ramping up) and this will no doubt affect your Retirefunds over the next few years, no matter where the market is today!

The argument for Lithium
Electric vehicle drive trains

Vehicle fleet niche-NYT

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