Lithium Investing - Mass Transit Fleets Shift To Electric, Driving Demand For Batteries
Electric bus fleets around the world.
Over the past year, municipalities have won headlines about the electrified power of their public transport fleet.
It seems to me that this is an exciting lithium battery supply chain emerging market as a large number of buses and bus buses are deployed globally, especially since each bus needs a large battery pack.
In addition, the frequency of replacing buses is generally consistent, supported mainly by public funds.
For these reasons, the market for bus and coach is well suited to benefit from lithium conversionbased, all-
Electric drive systems will add meaningful new demand to the lithium supply chain in the coming years.
Major opportunities such as large public transport fleets turning to electric driving continue to strengthen my long-term work
Permanent investment thesis: post-investment-
Phase lithium exploration and early
A stage production company and a company that provides some form of strategic value, E. G.
Land parcel or terminal for positioning-
The general theme is that municipalities will turn to electric buses as they will help reduce the low
Ground Air emissions in the center of the city.
Almost all technologies are new and the initial cost is greater than mature platforms such as compressed natural gas, but in the end, the benefits of lifetime ownership plus other forms of cost savings will make these new technologies widely available.
Nowadays, because electric buses do not have internal combustion engines, transmissions or intake and exhaust, the electrified technology of passenger cars can reduce operating costs and emissions.
Although there may be cost savings during ownership, the real advantage of electric buses will be to reduce emissions.
Due to the increase in consumer demand and the government\'s authorization for new energy vehicles, lithium battery technology is already very mature, and I expect their adoption rate and scale to increase significantly.
Of course, the municipalities will initially
Could lead to annual pilot projects widely adopted over the next five years.
Recently, a series of announcements on the steering of electric buses, including: the author provided-
BYD 100% battery electric bus in Long Beach, California in 2018 it is clear that the North American market is catching up
Electric buses have become mainstream in the Asian market.
In 2017, China\'s pure electric bus market was close to 90,000 vehicles, mainly supplied by BYD (OTCPK: BYDDF), China\'s largest electric bus manufacturer.
On December 2017, Shenzhen announced that 100% of its more than 16,000 buses were electric.
In March 2018, India made headlines as the Indian government supported the purchase of 40 buses for each city under the pilot project.
Some cities choose to buy more than 40-
Unit allocation, including Bangalore of 150 units, Hyderabad of 100 units and Delhi of 700 units.
In general, the total purchase volume is about 1,000 electric buses, mainly provided by Tata Motors (NYSE: TTM) and BYD.
As shown below, the overall demand for public transport buses around the world is growing rapidly.
Between 2015 and 2022, the total number of buses deployed in each major market is expected to increase to more than 200,000.
The New Flyer industry (OTCPK: NFYEF) currently offers a platform for battery storage capacity from 200kWh to 800kWh or more, while the total energy capacity of the bus provided by Proterra
Estimated number of heavy vehicles worldwide
In 2015 and 2022, by region or country, the transition from city fleets to electric buses has taken place in China and has begun to manifest itself in North America, indicating that as transit authorities reduce local emissions, global penetration will continue to rise, as announced in Toronto.
If we assume that 25% of buses on global roads were purchased as power-driven in 2022, an average of 50,000 vehicles per 200KWh would be required, equivalent to 10, with a battery storage capacity of 000MWh or 100GWh.
The previous analysis did not include the transmission of electric drive on traditional school buses, with more than 480,000 traditional school buses in the United States in 2016.
Several companies have announced that they will enter high
The whole batch production of 2018.
The school bus has a rated battery storage capacity of about tile hours per bus.
Converting the entire American school bus fleet to electric vehicles will require battery storage capacity of about 75, 000MWh or 75 GWh, indicating another considerable opportunity for the battery market to rapidly grow into high capacity
I recommend investors to go for a ride in Winnipeg in March 2015.
Headquartered in the New Flyer industry, it is the largest manufacturer and parts distributor of bus and coach cars in North America (Seeking Alpha: free rides with new flyer bonus ).
At that time, the company\'s shares were sold at $15 a share.
Over the past three years, the company has further consolidated its leadership in the North American market through a series of acquisitions and investments in new energy technologies.
The most notable deal was the acquisition of Coach Chi Industrial, which helped to increase the value of the company to more than $50/share.
To follow up on my March 2015 purchase proposal for the New Flyer industry, I recommend that investors continue to monitor the development of the New Flyer to reach the North American bus and coach market.
In the international market, BYD, the Chinese manufacturer of batteries and electric buses, has a very high exposure.
For those who are not familiar with the new flying industry, this is a Canadian-
Manufacturer of heavy vehicles
Buses in North America.
The company is a technical leader in the field, providing drive systems driven by clean diesel, natural gas, diesel
Electric hybrid, electric trolley and current electric battery.
The New Flyer also operates the industry\'s most complex after-sales parts organization, sourcing parts from hundreds of different suppliers and supporting all types of buses.
It is undeniable that a long term
The trend of widely used electric-powered terms has begun to increase.
One of the potential industries to benefit from demand growth is the lithium chemicals market.
So I continue to believe that advanced lithium exploration, early
Stage producers and selected strategic lithium properties will continue to perform well in 2018, 2019 and 2020.
My biggest investment in lithium primary space is superior lithium, a highly strategic participant in the global exploration space.
The company is actively developing its flagship project in Olaroz
Caucobre (OTCPK: OROCF) has a 25% stake in the company, which also controls about 30% of the company\'s shares.
Supplementary background information and advantages of lithium battery from Orocobre, please see my many other documents.
In May 2018, Advantage Lithium completed the second phase of its exploration project in Cauchari, providing the latest resource estimates.
The main highlights of the updated resource report include: 6-
Increase from 500,000 t lce to 3 million t lce.
The company has completed a 43-
101 compliance resources are an important milestone for primary exploration companies.
Phase 2 drilling has now been completed, including expansion to the southern East and the northwest, which had not been previously explored.
Phase 3 drilling will continue to expand the depth of the basin, as none of the holes reach the bottom of the basin, which creates potential for further expansion of resources.
Salt water chemistry continues to reflect the salt water chemistry of the Orocobre oz project, with an average ratio of 2 magnesium to lithium. 5.
Australia in recent weeks
Based in Galaxy Resources (OTCPK: GALXF) and Korea-
With Argentina-based Sal de Vida lithium Saline Project, POSCO (PKX) announced the sale of a set of land, including some northern land apartments.
A cash consideration of about $2 was paid at $0. 35 billion (all figures are Canadian dollars ).
The total resource meeting the JORC standard is 54 million tons of LCE and the price is $140/ton of LCE.
According to the issued shares of Advantage Lithium 0. 14 billion and the title status of Cauchari 75%, this means that the price target is more than $2 and Cauchari contains at least 3 million t lce. 00/share.
In my opinion, the dominant lithium is the most strategic and open --
Junior lithium trading-
Exploration companies on the market today.
This view has been reinforced by various research institutions, including the following: occapital recently updated the target price to CAD 2.
$50 per share.
90/share, Cantor Fitzgerald began reporting on the company in May 2018 with the target of 2 Canadian dollars. 00/share.
The National Bank of Canada recently introduced insurance with a purchase rating and price target of 1 Canadian dollar. 90/ share.
As mentioned above, these price targets are very consistent with my purchase proposal and the price target of $2. 00/ share.
Author Note: If you like this article, then click on the \"follow\" tab at the top of this page or on my profile and will definitely receive future material.
Disclosure: I am/We are long term avlf, NFYEF, OROCF.
This article was written by myself and expressed my views.
I have not received compensation (except for Seeking Alpha ).
I have no business relationship with any stock company mentioned in this article.
Editor\'s note: This article covers one or more micro-stocks.
Please note the risks associated with these stocks.