Pistol Bay Mining (TSX-V:PST
), a Vancouver-based firm engaged in the acquisition, exploration and development of Canadian mineral properties, relayed Tesla Motors’ announcement that the cutting-edge electric vehicle manufacturer and its partner, Panasonic, had plans to construct a mammoth lithium ion battery factory by 2017.
According to the news release
, the Giga Factory is expected to seize the market with an annual production rate of 500,000 lithium batteries while driving down the cost of manufacturing the units by an estimated 30%.
Elon Musk, Tesla CEO, commented in a recent interview done for Greentechmedia.com, “We are doing something that's comparable to all lithium-ion production in the world in one factory... a plant that is heavily powered by renewables, wind and solar, and that has built into it the recycling capability for old battery packs.”
With projections of lithium batteries using 10-20-30% more graphite than standard batteries, the Tesla facility alone is expected to require 150,000 tonnes of graphite every year against a current global graphite production rate of 450,000 tonnes annually.
Pistol Bay Mining president and CEO, Charles Desjardins, was quoted in an exclusive interview with Financial Press, “"If a graphite supply crunch comes, and it looks more and more likely particularly with this announcement, we plan on being one of the first new producing mines here in North America.”
He went on to explain, “Portland Graphite property in southern Ontario has already been worked since the 60's with 5884m of drilling in 73 holes. By twinning these historical holes and conducting further exploration of the 429 ha property, we could well be into a production decision by 2015 as we hope to prove-up and expand our historical reserves into NI 43-101 resource estimates in the next two years, well ahead of the majority of our peers.”
The release went on to note that Pistol Bay is unique in that its Portland Graphite property is represented by a large percentage of large and medium flake and according to Desjardins, the company intends to produce 150K tonnes per year and 1000 tonnes of concentrate with the facility swings into full production.
Pistol Bay was in the news recently when the company optioned Summit A&D to Vega Mining
Shares jumped 36.36% on the news to $0.075 per share.
Currently there are 22.8m outstanding shares with a market cap of $1.7 million.