March 12Th CONTENT
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Issue 05, February 27th – March 12th CONTENT Introduction During the first two weeks of March we saw important alliances 1between car manufacturers for the development and supply of Batteries electric vehicles. Daimler AG will cooperate with BYD in China and Vehicles and Mitsubishi Motors will work with PSA Peugeot – Citroen in Europe. These announcements represent an important step BYD and Daimler will develop an for electrifying transportation; however going forward requires Electric Vehicle for the Chinese market many issues that still need to be solved. As a society we have Celgard announced expansion of assumed that it is “possible” to replace (in some way) oil for production capacity in Korea electricity, but the question is if we have figured out where and Misubishi Motors and PSA Peugeot how we could obtain this electricity. Once this issue is solved (at Citroen reached final agreement a “reasonable” price and in an environmental friendly way), Sanyo will supply a lithium ion battery the next step is the efficient distribution of this electricity. We system for traffic signals in Japan have seen some companies that are developing interesting business models, but we are far from a mass implementation. LG Chemical will build Volt battery Summarizing, the question that arises is: are we (as a society) plant in Michigan prepared for electrifying transportation? Regarding lithium, a key raw material for batteries used in electric vehicles, it is important to highlight that most of the projects that have been announced in the last years are in an early stage of development. Anyway, the trend is clear: in less than three years around 20 new Companies have announced more than 40 new lithium projects. The point here is to identify and size the real supply of lithium that would come from these “new players”. This Lithium Industry is a key element for the analysis regarding lithium availability. As we pointed out in our previous report, the problem with the Canada Lithium showed new resource scarcity of a natural resource is not related with the existence of estimation physical amounts of resources, but whether the society is willing to pay the price to extract and use them. Canadian Orebodies would acquire 80% interest in Zigzag lithium property In May we will launch our singumBOX Analysis “Lithium, Batteries Orocobre reported sampling results at and Vehicles: Perspectives & Trends”. The report will be delivered its Salinas Grandes project quarterly and will collect the most relevant events of the first quarter, with a deep analysis of these industries and with medium Rodinia Minerals indicated sample results and long-term forecasts and trends. Li3 Energy acquired 100% interest on Big Smokey Valley Galaxy resources commenced mining activity at Mt Cattlin and increases reserve estimation LITHIUM, BATTERIES AND VEHICLES Batteries and Vehicles2 BRIEF NEWS During the first two weeks of March important agreements were reached. In the automotive market, the Chinese battery and car manufacturer BYD announced that would develop an electric vehicle for the Chinese market with Daimler AG. On the other hand, A123 Systems will develop the Japanese automaker Mitsubishi Motors and PSA Peugeot- battery systems for the Citroen signed the final cooperative agreement for the development Navistar Modec Electric and supply of the i-Miev in Europe. Regarding the battery industry, Vehicle Alliance Celgard announced production capacity expansion; Sanyo will Date: March, 9th develop a battery system, which operates as a back up for traffic Source: www.a123systems.com signals in Japan; and LG Chemical announced an investment of A123 Systems, an US battery US $ 303 million for the building of a battery plant in Michigan for manufacturer, announced an the Volt. agreement reached with Navistar for the development of a lithium ion battery systems for electric vehicles for the Navistar Modec HIGHLIGHTS Electric Vehicle Alliance, a joint venture between Navistar and BYD and Daimler will develop an Electric Vehicle for the Modec. Chinese market Date: March, 2nd Source: www.byd.com BYD, the Chinese battery and car manufacturer, and Daimler AG signed a Memorandum of Understanding (MoU) for the development of an electric vehicle (EV) for the Chinese market. According the press release, this vehicle will be marketed under a new brand jointly created and owned by both companies. Daimler recently launched the electric version of the Smart and it is expected that during this year the Company will introduce the electric version of the Mercedes Benz A-Class. LITHIUM, BATTERIES AND VEHICLES Celgard announced expansion of production capacity BRIEF NEWS in Korea Date: March, 3rd Source: www.celgard.com Celgard, an US manufacturer of separators used in lithium ion Researches released a novel batteries, announced that would expand production capacity at tin lithium sulfide battery its lithium ion separator manufacturing facility in Ochang, South Korea. Celgard would invest around US $30 million in this project, Date: March, various Source: www3.interscience.wiley.com which is expected to begin during the second half of 2010. According the Company, the purpose of this expansion is to meet Researches at the “Università future requirements in the consumer electronics market. degli Studi di Roma La Sapienza” released a new tin lithium sulfide battery that provides a specific Misubishi Motors and PSA Peugeot Citroen reached final agreement energy of around 1,100 Wh/Kg Date: March, 8th which is five times higher than Source: www.mitsubishi-motors.com those of conventional batteries Mitsubishi Motors Corporation (MMC) and PSA Peugeot Citroen signed the Final Cooperative Agreement for the development with intercalated materials. These and supply of the new generation electric vehicle i-Miev in the improvements were achieved European market. The agreement establishes that PSA will sell the by replacing the conventional i-Miev in Europe under the Peugeot and Citroen brands, and MMC will supply a total of 100,000 units. The launching is expected to be liquid electrolyte with a polymer at the ending of 2010. membrane. Sanyo will supply a lithium ion battery system for traffic signals in Japan Date: March, 10th Source: www.sanyo.com The Japanese battery manufacturer Sanyo announced that it would develop a “Lithium ion battery backup battery system” for traffic signals for the Tokushima Prefactural Police in Japan trough Nippon Signal Co. This system will be based on cylindrical lithium ion batteries used in consumer applications and will be used as a back up source for traffic signals in the event of power failures. LG Chemical will build Volt battery plant in Michigan Date: March, 12th Source: www.gm-volt.com The Korean Company LG Chemical announced that it would invest US $ 303 million in the building of a battery plant in Michigan for the General Motors’s plug-in hybrid electric vehicle, the Volt. This facility will have a production capacity in a range of 15 to 20 million prismatic automotive cells per year, i.e. 60,000 Chevy Volts per year. In January 2009 LG Chem, trough its subsidiary Compact Power, was selected by GM as the supplier of the lithium ion battery for the Volt. Since then, lithium ion cells have been manufactured at LG Chem’s facility in Korea, which then are assembled by GM at its own battery plant in Michigan. LG Chem has been awarded with a US $ 151.5 loan from the US Department of Energy for the construction of this plant. LITHIUM, BATTERIES AND VEHICLES Lithium Industry3 BRIEF NEWS Exploration activity is paying off: many “new” exploration companies, with interests in lithium, potash and other minerals have started to report their initial results of its sample tests. Other companies, which are in a more advanced stage, have updated its reserve estimation. This is the case of Galaxy Resources, the Reed Resources completed Australian Company that recently commenced mining activity at Phase II at Mt Marion lithium Mt Cattlin, which reported a new estimation of reserves which is project 23% higher than the previous estimation. Date: March, 4th Source: www.reedresources.com The Australian Company reported that the Phase II was completed with higher grades pegmatites than previous estimations. The resource HIGHLIGHTS estimate is planned for completition by April 2010. Reed Resources has a Canada Lithium showed new resource estimation Joint Venture with Mineral Resources Date: March, 4th Limited for the development of this Source: www.canadalithium.com project in Western Australia. The The Company reported that its Quebec Lithium Project contains first shipment from Mt Marion is a measured and indicated mineral resource of 31.6 million tones expected for Q1 2011. with a lithium oxide content (Li2O) of 1.11%, almost 867,000 tones as lithium carbonate equivalent (LCE). Also the Company informed that inferred resources reach 29-30 million tones of mineral, grading between 1.1 – 1.2% Li2O (around 840,000 tones LCE). LITHIUM, BATTERIES AND VEHICLES Canadian Orebodies would acquire 80% interest in BRIEF NEWS Zigzag lithium property Date: March, 4th Source: www.canadianorebodies.com Salares Lithium reported The exploration Company Canadian Orebodies announced that results of the Phase I at Salar it had entered into an agreement with Ultra Lithium Inc for the la Isla 80% interest of the Zigzag lithium, tantalum, beryllium and gallium property. The property covers an area of 2,064 hectares and is Date: March, 8th Source: www.salareslithium.com located 60 km northeast of Armstrong, Ontario. The Company reported that the Salar la Isla has a brine bearing horizon of 2,459 billion of cubic Orocobre reported sampling results at its Salinas metres using a resistivity cut-off Grandes project Date: March, 8th 1 ohm/metre (interpreted as Source: www.orocobre.com.au definitive brine). Salar la Isla is The Australian Company Orocobre reported the results of the pit located in Chile, in the III Region, sampling at its Salinas Grandes lithium project in Argentina.