What a difficult week we have had, page-27

This will make you feel a bit better an article from the Financial Review today UBS analyst Lachlan Shaw says the SQM deal will not affect lithium supply for at least four or five years given the time required to build the expansions. When SQM's expansion eventually does hit, Mr Shaw says demand should be surging sufficiently to ensure a shortage of lithium. "This new deal will require the biggest expansion in lithium brine production ever. Even for a company with SQM's technical proficiency, getting the studies, permitting, financing, a final investment decision and construction done on the scale we are talking about, is going to be three to five years before you get first production," he said. "Our view is quite bullish on the demand side … our demand numbers really kick into over-drive around 2022 and 2023."