Since Tesla Motors Inc (NASDAQ:TSLA) announced its intentions to penetrate the energy-storage industry last year, there has been plenty of excitement in some industries, particularly lithium-ion. Resulting in galvanizing demand over the year due to increasing speculation, lithium carbonate prices have surged 47%, which has delighted Australian lithium miners.
Lithium carbonate is a key element for production of Tesla’s lithium-ion batteries used in both vehicles and storage batteries. Australia is the world’s largest lithium supplier that aids the energy-innovation company in producing the key product used in its technologically advanced offerings.
According to the Sydney Morning Herald, lithium carbonate demand will continue increasing till 2020 and this rising demand will intensify the race to supply Lithium raw materials, further powering prices. China is targeting to introduce 5 million EVs on its roads by 2020. A major component of these EVs will be lithium. Lithium carbonate demand is tied with renewable energy demand, which is speculated to surge in the coming years.
The Australian market also looks like a great admirer of those products. While the Model S cars are already on Australian roads and Model X set to be launched later this year, the Powerwall battery systems have started hitting local households. Additionally, the battery is already one of the most inquired gadgets in the country.
Although the Powerwall started rolling out in the country by the end of last year, Tesla Energy official went on-air last week and said it has already found itself rivals. An Australian utility, AGL Energy has been selling residential energy storage systems known as Sunverge, since last year.
Furthermore, Natural Solar’s Managing Director, Chris Williams stated that Tesla has a clear edge over its competitors in terms of technology and price. He also stated that over the past six years, the country has seen a huge consumer and commercial uptake of solar. He also claimed that Australians are open minded and would like to lead the charge into battery storage technology.
Australia has turned out to be one of the most important markets for Tesla. The company is hopeful for great results and feedback from Powerwall owners. Apart from its battery-storage division, Australia is a long-term key market for Tesla cars. After creating a strong Supercharger network of seven stations from Melbourne to Sydney, the automaker plans to connect Sydney to Brisbane by the end of this year. Tesla also has three stores, two service centers, and 50 Destination Charging stations in Australia.