Incredible!, page-41

Bit more complicated than that. End users (battery market) are panicking about lithium supply. Currently converting what ever spodumene supply there is into lithium carbonate. Galaxy case in point http://investorintel.com/technology...um-concentrate-offtake-signed-for-mt-cattlin/ - Interesting to note this is both a discount to the regular spodumene grade target of 6.5% Li2O and at an inflated price.

Eventually new, better grade spodumene will come on line (maybe PLS). There are a lot of juniors in the lithium space with "spodumene prospects" based on the lithium hype. If all of them come on line, the spodumene price will decrease. Problem is, the converter capacity is limited. So only so much spodumene can be taken into the lithium carbonate market unless someone builds a new spodumene roaster.

The south American lithium brines (lithium triangle) provide lithium carbonate cheaper than the spodumene equivalents and they can increase production; however, ramp up, sovereign risk and production issues are common - see Orecobre (ORE) and SQM - ALB 'drama in the Atacama' for a case in point.

Long story short, lithium carbonate price will go up and hold at an elevated level for some time. Spodumene price will remain the same so long as converters are full and ceramics/glass industry are steady. Spodumene will come and go, lithium carbonate/hydroxide is forever.

An exciting space for new low cost producers to fill the void.