$12.2 Trillion Will Be Invested In Global Power Generation in the Next 35 Years and the Tesla Gigafactory Is Just the Beginning
VANCOUVER, BC / ACCESSWIRE / November 16, 2015 / According to a Bloomberg report earlier this year, $12.2 trillion will be invested in global power generation in the next 25 years,
with renewables counting for 2/3 of the investment. Tesla, as
witnessed by its multi-billion dollar gigafactory, is the first to
strike.
Tesla
CEO Elon Musk's goal is to be building 500,000 electric-vehicles (EV)
by 2020. With this planned production rate in the latter half of the
decade, Tesla alone will require today's entire worldwide production of
lithium-ion batteries. There are two primary raw materials necessary to
build lithium-ion batteries; lithium and graphite. In fact, it is
estimated that 15 times more graphite than lithium is required in a
lithium-ion battery.
In a clear indication that Tesla has begun sourcing the raw materials needed for its Nevada gigafactory, last week Tesla signed a 5-year lithium supply agreement with Vancouver based Pure Energy.
This puts Tesla well on its way to meeting its lithium supply needs,
however, the company still faces the task of securing its graphite needs
for the gigafactory.
Tesla can acquire this through the supply of
synthetic graphite, which is very expensive (up to $20,000 per tonne)
and requires fossil fuels to manufacture. Both of which go against
Tesla's announced mandate to reduce the cost of battery production and
move away from reliance on hydrocarbons.
Alternatively, they can
secure off-take from a high quality, graphite deposit, much like they
did with the Pure Energy lithium deposit (which would be aligned with
their corporate mandate). Become vertically integrated; own your raw
material; guarantee quality control and secure your future supply. Given
the substantial concerns surrounding Chinese graphite mines (world's
largest graphite producer) it is quite likely that Tesla will seek a
North American (possibly even American) source for its graphite.
Enter Graphite One (GPH:TSX-V, GPHOF:OTCQX) and its Graphite Creek Deposit in Alaska.
The
Graphite Creek Deposit is America's biggest 'large flake' graphite
deposit with an indicated graphite resource totalling nearly 18 million
tonnes at 6.3% Cg with a 3% cutoff in addition to an inferred resource
totalling 154.36 million tonnes at 5.7% Cg. It is a high grade, high
quality, potential 100 year life graphite mine in the United States with
excellent infrastructure. Graphite Creek also offers direct ocean
access to the western seaboard:
Image: https://www.accesswire.com/images/988/Graphite-Creek.png
There have been signs of accumulation in Graphite One shares (GPH.V) in
recent weeks with volume increasing substantially along with price:
Image: https://www.accesswire.com/images/988/GPH%20chart.png
With renewable energy clearly representing the
largest global investment opportunity over the next few decades there
stands to be a huge opportunity in profiting from the raw material
suppliers to the renewable energy space. The investment opportunity in
electric-vehicles is both massive and multi-faceted, and there are sure
to be dozens of big winners along every step of the electric-vehicle
food chain. At its current modest C$25 million market capitalization
Graphite One (GPH.V) stands a very good chance of being one of these big
winners.
SOURCE: Energy And Gold Ltd.