Thanks to GIANTPAPERCLIPS on AVZ forum and setmefree spotting...

Thanks to GIANTPAPERCLIPS on AVZ forum and setmefree spotting it.

Simon Moore Interview, excerpt.

INN: My last question for you today, what would you say is one of the factors that is most overlooked by investors? Is there anything you think investors should be paying attention to right now that could impact the market going forward?
SD: Investors I think struggle to understand, and for good reason, they struggle to understand the lithium chemical conversion is part of the equation. It’s easy to look at the mining, that’s quite transparent, they are from the brine and spodumene aside, but really what is the determining factor for the industry right now is how much conversion capacity really is in China. So, we spend all our time in China building our own an internal view on this. That view is the –we’re about 640 thousand tonnes of capacity listed. Now, listed in nameplate does not mean that’s actually there and that’s a key thing really for us the real capacity number within China right now this year is about 220,000 tonnes, so investors would read 650,000 tonnes that would mean lithium oversupply, “we knew it, let’s –let’s get out of the industry.” The reality is that real number is about 220 and then that’s operating at capacity. So, the capacity is probably, we could probably half that again to get the amount of production that we would want to see, then all of that production in China is not necessarily quality to go into batteries. So, that’s another hurdle that the industry has to go over and so, the further you go down the supply chain, the harder it is to –to make the right kind of products for the industry. And that will naturally restrict supply. I think that is the key thing for investors to understand.