$350 million investment for electric car venture

Toronto (Kitco News) --The key element in the batteries that power cell phones, personal computers and other digital gadgets, lithium is now poised to take to the highways as more electric cars are developed, according to the president and CEO of Lithium One, Inc.

Patrick Highsmith said the growth in the use of lithium in personal digital equipment has been excellent, but said the next opportunity is in electric cars. Based in Vancouver, British Colombia, Lithium One, Inc is an explorer and developer of mineral properties with a specific focus on lithium.

Lithium One has two major lithium projects: the brownfields Sal de Vida lithium brine project in Argentina and the James Bay bulk tonnage spodumene project in Quebec.

The following companies are distinguished from other lithium juniors as they have made corporate announcements regarding intentions to engage in near term production and have followed up with action to support plans to actually and realistically come online near term. The mentioning of these companies is NOT an endorsement as certain ones have advantages over others and require in-depth analysis; some of these (without mentioning names) have substantial permitting issues to battle through, jurisdictional/political risk issues, and some even have serious questions about the actual economic viability due to the nature of their resource.

1) Orocobre Limited (ASX: ORE) (corporate website). Orocobre's Salar de Oloraz brine deposit in the Puna Region of Argentina is being touted as a near term large scale, low cost lithium-potash brine resource operation. Orocobre had joined forces with Toyoto Tusho to develop Salar de Oloraz, and expects to complete the Definitive Feasibility Study on the project in mid 2010, with initial commercial production starting in late 2011.

2) Simbol Mining Corp. (private company) (corporate website) has exclusive mineral rights contracts with geothermal developers. Information is guarded by Simbol as they are private however they are believed to be newly operational and actually producing lithium and growing.

3) Canada Lithium Corp. (TSX-V: CLQ) (corporate website) has initiated a prefeasibility study on its hard rock Quebec Lithium Project near Val d'Or, Quebec. CLQ.V has announced anticipated plans for mine construction in 2011. Canada Lithium Corp is currently completing a Pre-Feasibility Study for the development of the project that anticipates production of up to 19,200 tonnes of 99.5% lithium carbonate product annually, commencing around 2012.

4) Galaxy Resources Limited (ASX: GXY) (corporate website) is finalizing plans to establish a lithium carbonate chemical facility in Jiangsu Province, producing 17,000 tpa of lithium carbonate. We note none of this product is likely to enter the North American market and will be for internal consumption in China.

5) Reed Resources Ltd. (ASX: RDR) (corporate website) in JV with Mineral Resources Ltd. (ASX: MIN) have announced 2010 production start-up of hard rock project in Western Australia.

6) Western Lithium Corporation (TSX-V: WLC) (corporate website) has received approval for its plan of operation for its hectorite clay Kings Valley Lithium Project in Nevada.

Anticipated addition to list: See case study below on Pan American Lithium Corp. (TSX-V: PL) (US Listing: PALTF); Pan American is advancing the development of geothermal brines at Cierro Prieto, Baja California, Mexico with the goal of producing 5,000 tpy lithium carbonate. Pan American also possess nine salars in in Atacama Region III, Chile where surface water lakes offer quick and cost effective means to calculate an initial resource estimate, and offer quick access to a source that can be processed cost effectively. Pan American Lithium possesses a relatively short timeline into production and is considered to be positioned to be quicker to market than any other new lithium related projects in the market.

The state will be among the first to see large numbers of battery-powered plug-ins on its roads. But its electrical infrastructure is far from ready, and regulators worry a surge of evening recharging will push peak power use beyond capacity.

Grueneich estimates the changes to the state's electrical infrastructure could run to millions, if not billions, of dollars. "To move to a clean economy is going to cost some money," she admits, suggesting that rate increases are possible.

PG&E's Saul Zambrano, director of integrated demand side management core products, promises the utility is "on top" of the numerous changes. But he also admits its estimate of electric car adoption is a moving target. When Nissan announced in March it would sell the electric Leaf for $32,780, PG&E was surprised at the affordable sticker price -- so surprised that it increased its sales forecast. (The utility declined to release the exact figure.)

In its place, a new world is struggling to be born, a world of sustainable resources. Will the United States build the infrastructure necessary to stake a claim at the forefront of the transformation?

Today’s power grids weren’t designed to handle this kind of load.

This may seem like a futuristic dream, but other countries are already laying the groundwork. Israel is preparing the world’s first electric car network, complete with half a million recharging stations. The United Kingdom has also announced plans for an electric car infrastructure. Shouldn’t the United States — one of the most car-dependent nations in the world — be striving for a leading role in developing this promising transportation concept?

In an effort to lure early adopters who might hesitate at dropping more than $30,000 on a mass-market electric car, General Motors said on Wednesday that it would guarantee the battery on its forthcoming Chevy Volt for eight years or 100,000 miles — better than the typical five-year or 100,000-mile warranty it typically offers for the powertrain on its conventional cars.

The Obama administration carved out $2.4 billion in grants from last year’s economic stimulus package to help pay for research and production on advanced battery and electric vehicles. That money has gone to some four dozen projects developing batteries and electric drive-train components in over 20 states.

ianadds wrote:G.M. to Offer 8-Year Guarantee for New Electric Car’s Battery
http://www.nytimes.com/2010/07/15/business/15auto.html?src=busln

In an effort to lure early adopters who might hesitate at dropping more than $30,000 on a mass-market electric car, General Motors said on Wednesday that it would guarantee the battery on its forthcoming Chevy Volt for eight years or 100,000 miles — better than the typical five-year or 100,000-mile warranty it typically offers for the powertrain on its conventional cars.

The Obama administration carved out $2.4 billion in grants from last year’s economic stimulus package to help pay for research and production on advanced battery and electric vehicles. That money has gone to some four dozen projects developing batteries and electric drive-train components in over 20 states.

Follow the money..where did I hear that phrase before ??

July 17 (Bloomberg) -- Toyota Motor Corp. and Tesla Motors Inc., the electric-car maker, agreed to develop a battery- powered version of the RAV4 compact sport-utility vehicle that may go on sale in 2012.

The arrangement lets Toyota “go in different directions at the same time,” Jim Lentz, president of Toyota’s U.S. sales unit, said in an interview July 15. “A lot of our electric vehicle work has been in small, commuter-type cars, because that’s the direction we think most consumers will want to go. If that’s not right, we need to have alternatives in play.”

WAKO, Japan (AFP) - – Honda said Tuesday it would roll out an electric car and plug-in hybrids in Japan and the United States in 2012 as it tries to catch up in the race to make clean, battery-powered cars.

Japan's number-two carmaker had previously been sceptical of plug-in hybrids but now plans to launch a compact electric car and mid and large-sized plug-in hybrids capable of up to 60 kilometres per litre (140 miles per gallon) of petrol.

Nissan, Japans third-largest automaker, is set to take the lead in mass-producing fully electric cars with lithium-ion batteries when it releases its Leaf later this year in Japan, the United States and Europe.

SEOUL, July 20 - South Korea's LG Chem <051910.KS> said on Tuesday it was considering building rechargeable battery plants in China and Europe around 2013 to meet demand.

A U.S. unit of South Korea's No.1 chemical maker last Friday held a ground-breaking ceremony for a $303 million battery plant in Holland, Michigan, to supply batteries for General Motors [GM.UL], Ford Motor Co's <F.N> Focus, and Eaton Corp <ETN.N>. [ID:nN15213103]