The new CAFE standards. Auto manufacturer's must meet miles per gallon standards
about twice what they are now by the end of the decade. But wait, the trick is that the
standard is calculated by "fleet". That means that not every vehilcle they produce must
meet the new standard, just the AVERAGE of all the models they produce. So, auto
manufactures are all including either a hybrid or an EV in their "fleet", which in turn
brings the average into complience. That's the driver behind all the EVs you see
coming on-line in the near future. So whether or not the hybrids or EVs sell or not,
they will be part of the model mix. That almost guarantees a market for lithium auto
batteries down the road, and good for lithium producers like Western Lithium.
There were many who purchased WLC back when it was $1.20 a share. I first found WLC back then. At that time I decided it was too expensive for me and I would wait for it to come back to earth. At that time the President O stated the federal government was backing green energy and battery powered cars. He might as well have said, "Lithium investors chaaarge!" So the rush was on and everyone was out snapping up shares at whatever the cost. But from the beginning WLC had given their plan. Everyone should have read it but it was obvious they did not as they piled on in hopes to make a quick buck. Battery powered cars are not dead, the engineers are still catching up to the idea that batteries get hot and need cooling. My cell phone is testament to that. There are other needs besides range with the cars. Charging stations need to be installed, whether in your garage at home or at stations across the nation. All this stuff takes time, it is not just knee jerk like the President wants. I think WLC will be a successful play for (patient) investors. They have already proven their determination and skill at obtaining the capital to help reach their planned goals. Yes we have about year to wait to start digging, but watch for some earlier news about the demonstration plant and possible purchasing agreements secured later this year, before we begin to scrape the dirt. I am also thinking we may see early EPA approval since Sen. Harry Reid is wanting those 150 jobs for Nevada sooner rather than later, we shall see. GLTA!!
Bud, you sure are drinking the cool aid dude. Those CAFE standards have been known for several years now. Auto companies are already positioning themselves. No way there is going to be a big surge in demand for lithium for autos any time soon. The battery companies are all bankrupt.
The clay for energy is way more appealing over the next few years, assuming they can get to that point. Still a lot of obstacles in the way.
The $20 mil investment was definitely a good sign, like someone thinks maybe this can be salvaged, after the total destruction of the stock price over the past couple of year. I'll ride it out on the clay story, but I don't think there is any chance lithium is ever going to be a part of the solution for autos.
I believe you are misinterpeting my post. I didn't say anything about a "surge" in demand.
I pointed out that there will be a sustained demand for lithium batteries to the auto industry
due to the CAFE standards whether hybrids and/or EVs become a greater portion of auto
sales or not.
As far as whether lithium will be part of the solution for autos, I'll leave that projectin up
to the battery makers. I will say however, that recent expansions of their facilites would
indicate they believe the market will grow.