The Synergy between Natural Gas and Electric Cars!

Natural gas is too "unstable" to use on our roads and highways where millions of cars and trucks are subject to the millions of traffic accidents. From a safety perspective alone, natural gas vehicles should not and cannot be allowed on our roads. There are simply too many uncontrollable variables.

Natural gas can however, power the transportation of the future as feed stock for electrical power generation. Because natural gas is so abundant, it only makes commons sense that electric power plants will use more and more natural gas as their feed stock over time. As this abundant source of power generation comes on stream, look to invest in the companies that stand to benefit from this game changer.

Duke Energy (DUK), Progress Energy (PREX.PK) and others are all good bets as is laid out by theStreet.com (See their top ten list for 2012) Electric power storage is also a great place to take a long term view. There companies in that space looking for fuel cell solutions (large fuel cell stacks that can burn nat gas) Ballard Power (BLDP), Plug Power (PLUG), and Hydrogenics (HYGS) are all pursuing such a solution. However, it is the feed stock of the future electric car that interests me most, and that is Lithium.

As Lithium becomes more and more the "go to" source for new battery technologies, from your iphone and laptop, to golf carts, electric motor cycles, cars and large storage facilities, look to the miners who produce, or will produce, lithium carbonate from two different sources, hard rock (pegmatite) and lithium brines or clays. Let me explain.

The largest supplier of Lithium today is Sociedad Qumica y Minera de Chile S.A. (SQM) which produces Lithium as a byproduct of its massive Potash operations. As with other large miners, SQM sells it's lithium on a spot market (there is currently no futures market for lithium, however this could change in the coming years)

Now electric battery manufacturers and car makers require a steady stream of lithium carbonate for their manufacturing processes so as not to interrupt production. To date, suppliers such as SQM, FMC et al have refused to sign contracts to supply a continuous, uninterrupted supply of product to manufacturers. This is mainly because, even though brine production is the most economical way to produce lithium, it is more sporadic than spodomen production, due to the natural drying out process supplied by the sun, that makes it more economical in the first place.
Australian producer Talison Lithium (TLTHF.PK) (TLH-T) is the largest, pure lithium producer on the planet, and its spodomen production from its Greenbushes operation in Western Australia, is the richest hard rock deposit on the planet. Talison supplies over 300 customers with product and is the largest supplier to the growing Chinese market, due to its ability for continuous production and its proximity China. Talison also boasts a very large brine deposit in South America due to its purchase of Salares Lithium in 2010. In 2012 Talison reports a 25% increase in the price of lithium this year alone (2012).
(click to enlarge)
FMC Corporation (FMC) is another large producer based in South America, with brine production as a byproduct of other operations such as potash. As with SQM, lithium is only a part of its total operations and as potash becomes more important as agriculture attempts to feed a hungry world, its share price looks attractive as well.

As the lithium market grows, you should not ignore the juniors who have popped up over the past five years to take advantage of large deposits which may at some point, be quite productive or gain the notice of larger producers as consolidation takes place, as it so often does in young, growing markets.

In this space I like both Western Lithium (WLCDF.PK)(WLC-T) for its large, Kings Valley clay deposit in mining friendly Nevada and Rodinia Lithium (RDNAF.PK) (RM-T) as it owns three of the top 20 lithium brine deposits on the planet. If there is a future consolidation in the industry, these two should be tops on the majors lists.

In the "Battery" tech area I like A123 Systems (AONE). At only .50c per share this high tech battery maker has been hammered this year, well below where I think it should trade. At .50c per share, it is one of the best speculative penny stocks out there.

The above chart shows some of the other companies working in this field and as you can see from the chart, Lithium is a common denominator in battery development.

UPDATE: Aug 24th 2012
Rockwood Holdings (ROC) made an offer for Talison Lithium of $724 Million driving Talison shares up by 53% since yesterdayès close. We have cashed out our position in Talison with 110% gain.  Looking for an entry point into ROC now as it strengthens itès already substantial position as a world leader in the production of Lithium!

Editor

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• Lithium in high demand for tablet, car batteries
• Talison Lithium Announces Record Sales Volume and Price for Fiscal 2012 Year
• Galaxy notes lithium carbonate prices in China rose 17% over last 12 months
• Boston-Power Signs Deal with Beijing Electric Vehicle
• Rodinia Lithium Completes Production Well and Drill Program at Diablillos

Talison Lithium to Present at the Merriman Capital Investor Summit 2012

Perth, Western Australia, January 25, 2012 – Talison Lithium Limited (“Talison” or the “Company”) (TSX: TLH | US: TLTHF ) announced todaythat, Frank Wheatley, Executive Director Corporate Affairs and Strategy will be presenting at the Merriman Capital Investor Summit 2012. The conference will be held in New York City on February 1, 2012.

The Merriman Capital Investor Summit 2012 is dedicated to fast-growing companies in industry sectors such as clean-tech and clean energy, biotechnology, and resources including critical metals and rare earths. The conference features corporate presentations and individual meetings.

The presentation will be webcast, and a link to the webcast will be available on Talison’s website at www.talisonlithium.com.

For more information about the conference or to schedule a one-on-one meeting with Mr. Wheatley, please contact Talison’s investor relations representative listed below.

About Talison

Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars (brine lakes and surrounding concessions) located in Region III, Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.

To view the entire press release please visit:
Talison Lithium Ltd. Press Release


Editors note:
Talison Lithium is the largest pure lithium producer in the worlde today, supplying over 300 customers, mostly in China, with Lithium.  This year (2012) Talison negotiated a price increase for it's lithium production of 15%.

Related articles

• Talison Lithium Sales up 53% as company experiences strong demand, tightening supply for Lithium (retirefunds.blogspot.com)
• Talison Lithium and Sojitz Sign Memorandum of Understanding to market lithium carbonate in Japan. (retirefunds.blogspot.com)
• Top producer Talison Lithium Concludes First Sales Contracts for 2012 with 15% Price Increase (retirefunds.blogspot.com)

Update: Talison Lithium reports positive outlook for lithium price increases, and production.

Talison Lithium - TSX-TLH

Earlier this week, I contacted Talison Lithium to ask about any recent events that might move the stock price. I wanted to know if their were any price increases in the offing for their product, any new customers over and above the 300 current customers (mostly in China) which have sustained their operations at Greenbushes Australia and how they were developing their Salares 7 brine project in South America.

Here is the reply from Talison investor relations:

Talison continues to produce and sell lithium concentrate at its maximum capacity. For the 2011 financial year (results of which were announced about 2 weeks ago) production and sales volumes increased 30% and 32% respectively year over year, and Talison generated revenue of A$109 million and EBITDA of A$24 million, increases of 29% and 35% compared to the previous year.

Talison has continued strong demand for all its lithium concentrates from customers around the world. And until completion of the expansion of the Greenbushes Lithium Operations (expected in second calendar quarter 2012) the Company expects production and sales volumes to be capacity constrained.  Construction of the expansion is continuing on schedule and remains on time and on budget.

In the current quarter, Talison has secured price increases for two shipments and believes this, together with recent price increases from other lithium producers, are reflective of a tightening in global lithium supply. The tightening in global supply is expected to enhance Talison’s sales prices in the 2012 calendar year.

  Talison acquired the Salares 7 Project about a year ago, and the first drilling program was completed earlier in 2011 with highly encouraging results. Since then (during the winter in Chile) Talison has been planning the next stage of exploration which will commence in the next Chilean summer. Talison will invest approximately A$5 million in the programme including further drilling, process test work and collection of environmental data. Drilling will be focused on Salar de la Isla to define a potential lithium mineral resource estimate, as well as initial drilling at Salar de Aguilar and Salar Grande.

  Responding to growing global demand for an additional secure supply of lithium carbonate, particularly from electric vehicle battery manufacturers, Talison is also aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate. Preliminary engineering studies for the proposed plant have commenced with a target of commissioning in financial year 2015.

Happy Investing.
HP

Related articles

• Talison Lithium - Production up 32% - Price up 25% - reserves increased 157% - Sales up 32% - Operating costs down 12% and mine Life extended to 22 years ! (retirefunds.blogspot.com)
• Western Lithium shares rise on battery plan (retirefunds.blogspot.com)
• Rodinia Lithium Confirms Brine Grade and Quality at Diabillos lithium property (retirefunds.blogspot.com)

UPDATE!!!  OCTOBER 11TH
SINCE THIS POST, TALISON IS UP 88% IN 5 DAYS!!!

6 reasons why you should consider Rodinia Lithium for your value portfolio.

In November I discussed Rodinia Lithium and my belief that it is the next prize in the second leg of the lithium boom. Today I was re-checking the stats on this dynamic penny stock and something jumped out at me that I had not seen in some time. That is, in the insider trading reports supplied by TD Ameritrade, every single inside trade since June 2010 is a "buy"!  There are "NO" sell trades.

In other words, the people who actually know what is occuring in the company, on a day to day basis, and those overseeing the company's development, are all so poositive about their prospects, that they have only bought more of the stock, and not sold "any" of their holdings. This information alone, tells us something valuable is going on at Rodinia.

It is the commodity of the 21st century - Lithium!

Image via Wikipedia

All indications are that, by 2020, the production of electric cars and hybrids will outpace the production of gasoline powered cars.  Certainly, that is the case in China and India who are expected to "double" their auto production in the next year or two.  Europe is also a leader in this race.

America will trail this world changing development.  It will eventually be brought into the lithium economy kicking and screaming, but resigned to what the rest of the world is already doing.

Rather than placing bets on which of the hundreds of labs around the world will develop the best battery, best technology or the most stable catalyst in its uses, I have been placing my money on the producers of lithium, specifically, the small and mid tier group that for the past two years have staked the best lithium properties around the world.

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 

Talison Lithium has a big ace in the hole, in the race for Lithium supremacy!

Talison Lithium (TSE-TLH) has been in the business for 25 years.  It supplies about 75% of the Chinese import market in lithium from its Greenbushes mining operation in Western Australia, and has 300 customers worldwide. Talison plans a 100% expansion of those resources in 2011, and the recent 110% run-up in its share price reflects these facts.

However it is Talisons resource in Chile which will propel it to the top of the lithium world, and solidify its position as the largest, pure lithium player on the planet.

Rodinia Lithium looks like the next prize in this second leg of the lithium boom!

(Rodinias Clayton Valley Property)

 For the past two months Ive been telling you about Rodnina Lithium and its premium properties in Clayton Valley Nevada and Salta, Argentina. Just like Salares Lithium before, we made Rodinia our conviction stock pick in this (the second leg of the lithium bull)  market.

Rodinia has excellent properties and is one of the largest holdings in the lithium space which was (up until today) untouched by any big players.  Now,Hong Kongs Shanshan Resources Co., one of the leading, lithium-ion battery material providers in China, has bought in.

Lithium Production and Resources-Possible Short Term Oversupply

Editors note: This article is re printed with the kind permission of the author, one of the foremost experts on Lithium production in the world today!


By R. Keith Evans
 
The lithium market has two major segments - one for mineral concentrates with a low enough iron content to be suitable for direct use in glasses, glass ceramics, ceramics, enamels and glazes.  The second is for chemicals, metals and metal derivatives.

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.

Rodinia Lithium developing large deposits in Nevada and Argentina

Image by dsearls via Flickr
We have discussed the development of Rodinia Lithium in past posts, and in the interests of full disclosure, we have a long position in Rodinia (TSX V:RM).

During this "second leg" of the lithium bull market, it seems timely to remind readers about Rodinia and it's developing deposits in both Clayton Valley, Nevada and it's other excellent properties in Argentina, all of which show huge deposits, and potential, and three of which are in the top 25 properties worldwide.