New Hampshire -- The global lithium-ion battery market should experience exuberant growth in next few years says a new report by Frost and Sullivan. The firm urges li-ion battery makers to include the grid and renewable energy storage segment in their growth strategy as the stationary energy storage market is likely to be the leading consumer of lithium-ion batteries in the future. In addition, utility companies will continue to seek smart grid solutions that use these batteries.
The automotive sector will also grow, increasing demand for batteries of this type in its pure electric and hybrid vehicles, according to the report. Along with these factors, the trend towards incorporating lithium-ion batteries for start-stop automotive applications will draw vendors to this space.
“Overall demand for lithium-ion batteries will continue to increase throughout the forecast period due to anticipated high growth in the automotive and grid and renewable energy storage segments,” said Frost & Sullivan Research Manager Vishal Sapru. “North America and Asia-Pacific will lead demand, followed by Europe, wherein countries look for alternative energy sources to sustain automotive and energy sectors.”
Frost and Sullivan points out that regulatory incentives are driving demand in both the energy and automotive sectors. In the automotive sector, regulations encouraging fuel efficiency, emission standards and use of clean energy sources are stimulating the need for lithium-ion batteries. Similarly, in grid and renewable energy storage, changing utility regulations, especially in the United States, Europe and Asia-Pacific, encourage battery-based energy storage and distribution projects.
There is also more and more focus on using batteries for back-up applications in the military, healthcare and telecommunications industries, which is also driving up demand. Coupled with the growing need for lithium-ion batteries in the power tools and equipment market, this is boosting the attractiveness of the industrial segment, according to Frost and Sullivan.
That's funny, how big was earnings on the i-phone for Apple a few years ago ? What was Gold at a few years ago ? What was the demand for Balkan oil 2 years ago ? etc., etc., etc.,
More people in the world, more eating protein, expanding middle class in Asia - fertilizer need CLEARLY up. More EV cars, Ford coming out with "Tesla model for everyone", Factual huge growth in Lithium demand, CLEARY up. Not rocket science here, unless you are a short term traders, Buy and hold for 5 years and VERY likely you get a double or more. True patient investors love opportunities like these !
I think it is comparative advantage and their position as a low cost producer of premium fertilizers. Lithium is just a bonus at this time, but also beginning to grow well. New developments in batteries should accelerate this aspect too.
As we hit bottom in farm commodity prices, a rebound begins to appear in the horizon.
The recovery will bring wider margins as the competition appears to be in bigger troubles.
I know it's crazy ! I always thought inflation was the danger, alas we are still a bit moribund in the USA and the rest of the world looks messier and messier. A safe haven and zero inflation with no wage growth makes for a stronger dollar. The BRICS are suddenly a disaster. China looks dicey. I think it's already reflected in the stocks, crude and everything else points to a stronger dollar. I'm not sure there is blood in the streets, but it's darn close with these commodity stocks.
Sentiment: Strong Buy
The other lithium stocks are down today, the fertilizer stocks - Pot MOS IPI SQM etc are all up today - the reason SQM will go up or down is based opon fertilizer as lithium is NOT a big deal - look I have known about and owned on and off SQM for ten years and read the Q reports so I am not a novice.
But again, you're looking at the past. I'm talking about the future. Its amazing how many products they're bringing out that uses lithium batteries. Just look at Black and Decker. I personally own their 20 volt lithium ion system hedge trimmer, week whacker, blower chain saw, drill, circular saw and I just bought two of their LED flashlights which I love. They're a great work light and if the electric goes out, they'll run for 11 hours straight on a 2 am battery and 22 hours straight on a 4 amp battery and they put out enough light to see what you're doing in an entire room. Amazon had been out of them but they finally got them in a couple weeks ago. I'm saying that these kind of products are going to be flooding the market and I personally believe that electric cars are the future. Plus you have possible things coming like this. I think the demand for lithium is going to become huge and the price will go out of sight.
The UK’s first two-megawatt (MW) lithium-titanate battery is to be connected to the energy grid as part of a new research project to tackle the challenges of industrial-scale energy storage. The project aims to test the technological and economic challenges of using giant batteries to provide support to the grid. We’ll also test whether used battery packs from electric vehicles can be given a second life, and applied in hybrid systems to lower the cost of storage.
The US dollar is only going to get stronger which should mean deflation, i would caution against aggressive pursuing commodity plays. Although SQM with it's strong dividend is a good long term buy and hold.
I believe it is because they still reported decent income in a lowered commodity price environment which means their dividend is secure. Potash prices aren't going to go any lower and they said competitors are not oversupplying as much as they predicted which means more share for them and a possible increase in potash prices next year.
Even the ETF for lithium which includes Panasonic, BYD, Tesla Rocford and SQM is down for the year called ( lit ).
I will look up the info I had and post it later - Lithium sales worldwide were not near what people think and SQM even for them as a major producer it was only a fourth of their income as I recall.
It can be explained in one word. 'LITHIUM'. The demand for lithium batteries is exploding as more and more products come on the market each day that are powered by lithium, not to mention the electric vehicles. Demand is going to go through the roof and other suppliers are seeing their lithium production going down. The price of lithium is going to go through the roof and SQM is going to make a bundle. Wall Street is now beginning to see what is unfolding. I see a double in this stock in the next six months and who knows how high it could go after that. They are in the lithium sweet spot.
Estimated 3Q 29 cents and actual was 25 cents per share and for the 9 months was 83 cents per share versus a year ago was over $1.50 per share so it looks like actual eps for 2014 will be around $1.10 so if anything it should go down around $20 - $21 per share as business even on revenue side is clearly downward.
Sentiment: Strong Sell
Personally I like the have the 200 day moving average getting pierced to the upside once the slope has gone positive. Seems like we are close to that to more time we spend in the 20s.
Sentiment: Strong Buy
Chaikin Oscillator and that $22-23 level say yes. I missed it but bought more at $24 and today at $24.75. News is out that a big Russian mine is flooded and the rest of the Potash industry is running. We're going to need a much better catalyst to get a sustained uptrend going. Thus far Vale pulled the plug on Argentina and my gut is BHP post split will keep the Jansen project on life support versus ramping up. Corn prices are in the dumps and farmers aren#$%$ buying fertilizer. All good medium term to long term for a nice trade but these stocks are dead money right now and any institutional guy or fund manager that owns them, especially SQM, is risking getting fired: bad sector; bad sub-sector; bad part of the world with the tax issues in Chile and meltdown in Argentina and the new president in Brasil; bad stock with the dark could of the messed up ownership structure and the investigation.......All this negativity and supply getting iced makes for a GREAT trade longer term. But when? I have no more desire to buy MMM, JNJ or anything SPY looking out 2-4 years at these levels, but some of these natural resource stocks have some real potential.
Sentiment: Strong Buy