This article puts to an end the Morgan Stanley oversupply...

This article puts to an end the Morgan Stanley oversupply narrative once and for all. IMHO neither Albamarle or SQM will be able to increase Lithium Carbonate production in the Chilean Desert.

Pumping brine and producing Lithium Carbonate is not a linear relationship. At some point in order to produce the same quantity of Lithium as last year you have to pump more brine. This has perhaps been the case at both the producers that have been producing the light white metal for decades in the Chilean salt flat. As Lithium concentration inside the brine has dropped these companies have found intelligent ways to pump more water out of the ground just to maintain output. Perhaps that is the main reason why the trees in the salt flat are dying as water table has dropped to new lows. 

I think we are about to see Corfo placing brine pumping restrictions as well as restricting maximum Lithium output to previous approved levels on both the companies. This only means one thing Lithium Carbonate and Hydroxide prices are all set for a repeat of 2016-2017.

https://arstechnica.com/information-technology/2018/10/lithium-giants-feud-over-competition-brine-in-chiles-atacama-desert/

DYOR