Sunrise Energy Metals Ltd SREMF

Tesla theory

[blackwood2002]

With tesla breaking ground later this month on 2 building sites to expedite the building of its giga factory they are obviously very bullish on getting to production as fast as possible. With the need to ensure supply of Li to manufacture the batteries they will need to make those arrangements ASAP. Given the limited LI producers and the obvious demand for Li growing dramatically it puts tesla in a tough spot. No new production will be coming online for at least a few years so where does that leave them? Elon has already stated the giga factory will house 3rd party companies to manufacture the various components for their batteries vs. tesla doing it themselves to ensure the barrteies will be produces as fast as possible utilizing the expertise of these companies. So the fly in the ointment is a secure supply of Li. With RB's production already set to go to tawoo at least most of it it puts tesla in a tough spot to find a domestic supply. It the forces them to look at the global market to secure supply arrangements and leaves them at risk of pricing issues which would effect the potential profitability of the battery operation. Given Elon is very aggressive in any of his persuits I would venture to guess he would be inclined to buy a LI producer to ensure supply and maximize margins on battery sales by controlling the input costs of materials and manufacturing. He certainly has the clout and ability to find financing to fund such an acquisition. Either way demand will be there an RB will certainly benefit provided they ramp up to the planned 20k t annual production by the end of the year. I'd prefer the company remain public and benefit from the price increases in Li as demand grows but a nice juicy buyout isn't the worst thing either!