11:01 am:
Unless you have been living under a heavy, lithium-bearing rock you would be aware that investor interest in the lively sector has been super-charged over the past 12 months.
As the name suggests, lithium is a key ingredient in lithium-ion batteries used in electric vehicles and energy-storage systems which are expected to become more prevalent over the next decade.
On the back of bullish analyst demand projections and keen investor interest, tens of local players have joined the hunt for lithium, including Andrew Forrest-backed nickel miner Poseidon Nickel and resurrected iron ore miner Atlas Iron.
"There is tremendous amount of enthusiasm about the topic given demand from electric vehicles and the rapid price rise in China," Citi analyst P.J. Juvekar wrote in a research note.
West Australian lithium hopeful Galaxy Resources chairman Martin Rowley said the company had received enquiries from a number of car companies working to lock down long term contracts across the lithium-ion battery supply chain.
"There is a sense of fear in the car companies now about this electrification getting away from them," Mr Rowley said.
"What the car companies are most scared of is shortages and the spike in prices."
A number of Australian players are among the best-positioned to meet demand growth among a string of hopefuls. Orocobre is commissioning its brine-based lithium operation Olaroz in South America, the first greenfields lithium brine operation in 20 years, but technical issues have made it slow to reach full production. Neometals, Galaxy Resources and Pilbara Minerals are all developing hard-rock lithium deposits in Western Australia.
Galaxy Resources announced a merger with its joint venture partner at its Mt Cattlin project on Monday which it says will create a "leading diversified global lithium company".
Both Mt Cattlin and Neometal's Mt Marion project are expected to commence production before the end of the year.
