Good News & Bad News, page-1204

When you don't check before dropping the kids off at the billabong;

• Lithium producers are cancelling volume commitments to some customers
• Feedstock and chemical producers are accelerating expansions to meet demand
• Today’s ASX news from ioneer, Lake Resources, Argosy Minerals and Magnis Energy Technologies

Many lithium producers are now sold out of excess inventory until the end of 2021, as appetite downstream from the battery industry continues to surge.

“Exceptional demand” from consumers to increase contracted lithium chemical volumes from suppliers remaining unfulfilled, market sources told Benchmark.

“Market participants reported to Benchmark that certain South American lithium producers had begun to renegotiate or cancel volume commitments to some customers, having overcommitted to contracts,” Benchmark says.

Lithium feedstock and chemical producers are accelerating expansions as a result of higher prices and improved earnings.

In China, Ganfeng looked to broaden its asset base, announcing plans to purchase the remaining stake in Bacanora Lithium.

Chengxin Lithium, formerly known as Weihua, announced plans to sell off its rare-earths business to accelerate the construction of its lithium hydroxide conversion line.

Elsewhere, SQM brought forward one of its targeted expansion dates by a year.

In WA, Pilbara Minerals (ASXLS) inked a deal with tech provider Calix to develop a midstream spodumene refinery.

“From a wider perspective however, local reporting and market sources have indicated to Benchmark that the resurgence of activity in the lithium and broader commodity sector in Western Australia, could begin to create a labour and equipment shortage in the region, and possibly delay project timelines,” Benchmark says.

“Whilst not yet documented, delays to capacity expansions will be followed closely by Benchmark.”

https://unauthorised investment advice/resources/the-lithium-shortage-is-already-here