AFR: $60m cap raise at 30c, page-353

Great article and spot on regarding Lithium sea prices softening, Chemical conversion etc, pasted the part relevant to the bottleneck being discussed here.

https://www.mining.com/web/lithium-cobalt-look-2019/

Chemicals capacity is coming
Chemicals capacity is comingThe bottleneck in ‘effective’ spodumene capacity, and delays in achieving product certification for battery-grade lithium carbonate or hydroxide products, have been key supports for prices since the lithium boom emerged. We do not see this tightness continuing, and expect conversion capacity and required feedstock supply to be more appropriately balanced through downwards vertical integration of mines in Australia, and upwards integration of Chinese converters. 2019 will be a key year in this rebalancing. Both with the ramp-up of mine supply outlined above, and with the addition of significant new conversion facilities, primarily in China. The largest of these will be the start-up of Albermarle’s Xinyu II unit in Jiangxi province, which will have capacity of 20 ktpa of lithium hydroxide. However, a number of other plants – many attached to the growing Qinghai ‘brine scene’ – are set to go into commercial production this year, including Zangge Lithium (10 ktpa carbonate), Qinghai Lithium (5 ktpa carbonate) and Qinghai Hengxingrong (4.5 ktpa carbonate). Other conversion plants processing hard rock concentrates are expected from Sichuan Energy Investment (10 ktpa carbonate) and Hefei Tiansheng Lithium (5 ktpa). Meanwhile, 2019 will also be the year when Australia moves from producing lithium raw materials to chemicals with the start-up of Tianqi’s huge 48-ktpa hydroxide plant at Kwinana.