Covers off Electric Cars

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"The global market for automotive lithium batteries is forecast to be a whopping $70 billion annually by 2020"

Battery swapping is in; lithium-ion batteries, that is, with major automobile vendors revving up to get their show on the road.

Even as Britain, France and the U.S. are offering substantial tax rebates to encourage more people to buy plug-in hybrid and electric cars, Renault-Nissan is considering leasing lithium batteries to reduce the up-front cost to buyers of its electric cars.

In China, Japan, Singapore, Israel, Denmark and the U.S., governments and the private sector are teaming up to work out the best ways of establishing networks for rapid recharging and battery swapping.

Honda, Toyota, Ford, Nissan and Volkswagen have all lined up their wares, showcasing their big jumps in small-car production.

A significant factor peppering most power point presentations and featuring in all the plans of automotive majors is lithium batteries.

Why, one would ask, is it such big business?

The global market for automotive lithium batteries is forecast to be a whopping $70 billion annually by 2020, dwarfing the lithium market for cell phones and laptops, currently valued at around $7 billion.

It is not just automobile majors who are chasing the green in the green technology. The US army too has a growing need for large-format lithium-ion batteries for its light-weight, high power density battery systems.

With the U.S. government's growing interest in lithium and it being such an important component of their green energy plan, it will become more and more advantageous for companies to control significant resources of this particularly important element.

High demand and low supply has already pushed lithium carbonate (Li2CO3) prices to US$ 6,600.00 per ton.

Moreover, the trading action in scores of small miners, wannabe producers of lithium, moly, gold and rare elements has been animated, revealing a clear trend.

Check out these lithium stocks:
  • Canada Lithium Corp (TSX: V.CLQ) jumped 2.0%
  • First Lithium Resources (TSX: V.MCI) was unchanged
  • Western Lithium Corporation (TSX: V.WLC), was up 6.45%
  • Rodinia Minerals (TSX: V.RM) climbed 3.49%
  • TNR Gold Corp (TSX: V.TNR) was up 3.39%

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