Strangely enough GPB's electric vehicle ventures failed miserably where competition appears to have thrive...
http://www.smh.com.au/business/theyve-go...zst1i.html
They've got the power: Battery stocks charging up, analysts say
Date
July 2, 2014 - 4:52PM
Eryk Bagshaw
Journalist
Booming global demand for battery-powered cars and portable devices such as smart phones and laptops is tipped to provide a boon for a handful of Australian miners producing the key ingredients of nickel, graphite and vanadium.
Credit Suisse analysts highlighted the opportunities in a note issued to clients on Wednesday, recommending nickel miner Western Areas and Egraphite and vanadium miner Syrah Resources. Credit Suisse is also tipping aluminium producer Alumina will benefit from increased demand for the lightweight metal that is favoured in the production of electric cars.
"These companies are already starting to see the benefit of advances in energy storage,” said Credit Suisse analyst, Adnan Kucukalic. “Energy storage is a big change that the world is currently undergoing, if we can get it right, there are all sorts of opportunities for investors.”
Nickel, graphite and vanadium are used in the manufacture of lithium batteries, considered the most efficient battery technology on the market. 40 per cent of a lithium ion battery is made out of nickel or cobalt.
The world’s largest electric vehicle manufacturer, Tesla, which has started taking its first orders from Australia for its electric cars, has opted for a nickel-dominant mix over the alternative cobalt mix.
The US company announced last month it will build a $US5 billion ($5.28 billion) battery manufacturing facility in California.
The Credit Suisse report also notes that Boston-Power, a US company manufacturing in China, has produced a battery that can potentially last up to 500,000 kilometres before it experiences any loss in capacity. Such technology could be expected to increase demand for electric cars.
Credit Suisse's Adnan Kucukalic said electric car production could swell to account for half the global car stock over the next two decades, leading to a scarcity of nickel supply.
“If it does, there simply is not enough of [nickel] at the moment to sustain those levels of production,” he said. “As supply runs short, nickel prices will rise, benefiting investors who get in early.”
TOP PICKS
The surge in demand for the key battery ingredients of nickel, graphite and vanadium is already being acknowledged by some investors.
Western Areas soared 96 per cent in the financial year ended June 30 to $4.81. At the same time, nickel prices climbed 34 per cent to $US202.80 per tonne amid global supply worries as Indonesia toyed with an export ban.
Western Areas is producing some of the highest quality nickel in the world at its two mines in Western Australia, Flying Fox and Spotted Quoll, Mr Kucukalic said.
Syrah Resources, an Australian company with graphite mining operations in Mozambique and plans for expansion into Tanzania, has seen its share price more than double to $4.19 over the past 12 months.
High quality graphite is also essential to improve the performance and price of lithium ion batteries.
Syrah also owns an undeveloped vanadium deposit. Battery industry experts have tipped that vanadium could be the key to bulk energy storage, although the technology is still in the early development phase.
Alumina, a producer of aluminium, is tipped by Credit Suisse to pick up gains, thanks to the demand for lightweight aluminium required to produce efficient electric cars. Its shares have risen 23 per cent since the start of the year.
