This is also why SDV becomes very important as we move into 2018...

This is also why SDV becomes very important as we move into 2018 and beyond, although I do expect that these numbers are assuming very minimal delays, and a steady 10% CAGR without EV demand (very conservative numbers)



Low cost brine is the future, and this IMO once new supply comes online, will be vital for GXY to maintain its profit margins. I do expect majors to TO some of the near term Li producers as well, since its vital to control supply/demand curves so that all the produce can negotiate favourable Li price contracts at steady margins, as well keep supply in-line with demand. Over-supply hurts the entire industry, and TOs will bring balance. I do expect that after some TOs, the majors will try to force out remaining competitors to thin out the herd even more, and surviving that wave relies on low-cost production. Right now we have Nemaska/FMC (possible alliance, although Nemaska is going to supply them with Li2Co3), LAC/SQM (in the development of Cauchari), Ganfeng/NMT/MIN/other minor players, Tianqi with ALB (at Rockwood) and Tianqi/SQM (thru Tianqi's stake), and ALB (possibly forming an alliance with us, pure speculation, have to wait and see what this materialises into). There is more speculation, but if these alliances and partnerships remain, the rest of Li producers better watch out come 2018, since they might be "thinned"