The coup in Bolivia, in addition to being morally reprehensible,...

The coup in Bolivia, in addition to being morally reprehensible, may have an adverse impact on lithium prices.

President Morales wanted to nationalise Bolivia's lithium resources and restrict supply. The big time lithium players want to ramp up production and flood the market, in part in an attempt to wipe out smaller operators.

I think the price of lithium - the high grade material fit for batteries, that is - will recover and flourish ultimately but Bolivian lithium situation could be a bump in the road.

I say this because the President chose to resign rather than fight to stay in power. He has very strong popular support and the coup could have caused civil war, but he chose to save the lives of thousands of people by resigning.

Having said that, it is possible that these events actually slow down the development of Bolivia's lithium sector - so the opposite effect is a possibility. Crazy times.