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Lithium boom just beginning as switch is flicked


Tesla has done it again. First South Australia, now Victoria.

The world’s largest battery storage system, powered by Tesla’s utility-scale Megapack batteries, has been switched online in Victoria, last Wednesday. According to CNBC, the “large energy storage systems based on lithium-ion batteries have the potential to prevent blackouts and let utilities store and use more energy generated from renewable but intermittent sources, like solar or wind.”

The Victorian Big Battery is a 300MW/450MWh lithium-ion battery energy storage system that will charge during the day when using abundant renewable energy such as solar. It will be run by French independent renewable energy company Neoen, as well as energy delivery business AusNet and of course Tesla and its Megapack batteries. Neoen has developed the facility with Tesla and AusNet with some construction even completed by Comic Group’s UGL (ASX:CIM).

According to the company website, the battery is believed to have enough energy to power one million homes for half an hour. It’s the biggest battery in the southern hemisphere and will help drive down electricity prices and supporting the massive renewable energy build the world is undertaking.

The Age says that “80% of the system’s capacity will be reserved for moments when Victoria’s power supply is under high stress. In those situations, the big battery should be able to power more than 650,000 homes for an hour.”

While that may not seem like such a long time, when baseload power systems are overloaded, just a short reserve of backup power can make a huge difference. The battery is vital to the stabilisation of the electricity grid and modernisation of the entire network. Its use will help Victoria reach its target of 50% renewables by 2030.

Tesla’s energy division hasn’t been profit-making for some time, due to the cost of the systems. However, during the company’s third-quarter earnings call, executives described increasing demand for the company’s energy storage products including the Powerwall for homes, Powerpack for commercial facilities, and utility-scale Megapacks.

The Victorian Big Battery is a step forward in terms of innovation and the demand for key battery metals such as lithium, cobalt, graphite, and nickel. Below are some top battery metals stocks listed on the ASX:

CodeCompany1 Week %1 Month %6 Month %1 Year %Price $Market Cap
TSLATesla Inc. (NASDAQ)0.20%-1.59%64.65%66.73%$1,012.52$1,020.00T
LYCLynas Rare Earths8.00%26.00%65.00%155.00%8.63$7724.64m
PLSPilbara Min3.00%21.00%134.00%342.00%2.53$7377.97m
ILUIluka Resources-7.00%-10.00%13.00%63.00%8.515$3576.06m
CHNChalice Mining-3.00%41.00%25.00%163.00%9.69$3510.50m
LTRLiontown Resources7.00%4.00%355.00%691.00%1.755$3278.53m
NICNickel Mines21.00%26.00%39.00%34.00%1.33$3231.81m
AVZAVZ Minerals25.00%114.00%363.00%708.00%0.695$2140.08m
VULVulcan Energy-3.00%-24.00%54.00%376.00%10.24$1349.80m
LKELake Resources-12.00%-3.00%219.00%1409.00%0.86$1105.89m
SYASayona Mining-8.00%-5.00%393.00%2147.00%0.1525$1056.72m
CXOCore Lithium3.00%-7.00%143.00%1089.00%0.5825$950.65m
JRVJervois Global-8.00%-10.00%13.00%110.00%0.535$849.12m
MCRMincor Resources NL-3.00%-7.00%30.00%26.00%1.255$605.43m
SYRSyrah Resources-7.00%7.00%15.00%75.00%1.2$600.98m
TLGTalga Group-17.00%14.00%14.00%-9.00%1.73$537.80m
MNSMagnis Energy Tech-9.00%60.00%112.00%242.00%0.615$475.59m

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