Fair points Whisky... the crux of my post was intended to...

Fair points Whisky... the crux of my post was intended to highlight the serious challenges facing SC producers that fortunately AGY and other BG li brine producers/developers are (mostly) immune to given they skip the conversion step in the supply chain.

That is their competitive advantage or key strength when you compare them to the challenging environment that existing SC producers are exposed to. Obviously the downward pressure on pricing is affecting the sector as a whole but this is mainly being felt in the SC market where margins are becoming dangerously thin.

Converting SC to a battery ready hydroxide (or carbonate) is not something that any Oz hard rock operations have the IP to execute on... Hence why they are now leaning towards JV's with overseas conversion operators.

Furthermore, the capital outlay for a hydroxide conversion operation is huge and the inherent risks will likely see any Oz based conversion project struggle to attract the funding required.... Unless say a big player with deep pockets such as WES steps in who can also afford to headhunt the technical team capable of delivering. Still, significant risk remains.

The big players such as Ganfeng and Tianqi who dominate the conversion space are obviously going to protect their IP for as long as they can to ensure they maintain their dominance in the market. The other main problem is the cost to deliver a converter project in comparative terms to current Chinese operations.

KDR are fully aware of this challenge and even though the 50/50 JV with SQM would provide access to a world class technical team, SQM's technical team do not have any experience executing a SC conversion operation. Taking the offer from WES is obviously a far simpler option for them.

Aside from Greenbushes (Tianqi) it is my understanding, MIN / ALB is the only other group who are proposing an oz based conversion project ?? Once again deep pockets doesn't guarantee a project free of execution risk and ALB have a pretty poor record when it comes to project execution.

Are there others I'm not aware of ? NMT were talking up a local converter facility in Kalgoorlie but have decided to delay further feasibility studies given current market and higher costings than originally thought.