An MoU is just that an MoU. And in particular an MoU with a Chinese partner often does not mean much. However, in view of our secret USA investor this info regarding talks with Chinese partner(s) is interesting. I have been thinking about who the USA investor could be and one very likely candidate IMHO is......Albemarle!
If we look at what the "big 3" have been up to we see:
1) SQM: Very active getting into LAC and KDR and even making up with the government in Chili
2) FMC: Failing to increase production in the last decade now doing an IPO of its lithium assets
3) ALB: Failed to increase production in the last decade with La Negra xx. Apparently in fights with Tianqi about production increase in Greenbushes but building a converter in Australia. But a bold statement out to the market that they want to retain their 50% market share.
So I think SQM has its plate full and FMC is leaving lithium. ALB has a lot of catching up to do to SQM and also to its own ambitions of staying at 50% market share in the lithium market. AVZ would be a perfect match for them. And also clear that they would not want anybody to know of this. Could also be a joined Tianqi-Albemarle take over as I guess AVZ without Chinese involvement might be difficult.
In any case clearly we are now in the middle of the Chess game. Interesting moves being made. I just sit back and relax and watch it all pan out. Will hold on to my shares until TO which I think will be this year!
