The issue with expanding downstream production is that lithium hydroxide made from lithium spodumene has a relatively short shelf life and transport would be problematic. That's why Allkem decided to build its lithium hydroxide in Japan, close to where the future customers, mostly Panasonic / Toyota JV I guess, are located. So Australia would need attract battery production as well and export batteries. I think the Argentinian government wants to do the same. Most upcoming battery production capacity in the future will be in China and most of the rest is probably already contractually tied to Western, Japanese or South Korean car makers. Also battery makers feel the cost pressure of rising raw material prices right now and several battery makers have already negotiated price hikes with their automotive customers, although they can probably only partially roll off the increased costs. The raw materials is where the margins are right now.
