This is a straightforward game of strategy (101) from a dominant producer. All SQM are trying to do is stifle investment in the sector.
Punchline... $12B USD is needed over the next couple of years to meet forward demand forecasts.
Rationale: SQM want to dominate the sector / goal retain position as a top 4 producer Talking down price is counter intuitive to getting to best price for the product they sell It's a signal to all lithium producers/competitors/new entrants Helps the majors to consolidate the industry at a low price Try buying an EV, there delivery delays everywhere (1-3 month delays)
Finally, I'd comfortably wager that Li brine prices will be largely stable and prices will range within +/- 5% this quarter.
GXY Price at posting:
$1.57 Sentiment: Buy Disclosure: Held
