So Chile is looking to restrict water use in the Atacama that will effect SQM and ALB from any planned Lithium production expansion.
SQM's announced expansion threw fuel on the BS oversupply story. So now with this revelation we should see forecasted supply tighten up adding to the upward pressure on pricing.
Sure SQM was down last night. So they should have been with this news. It will effect their ability to carry out their expansion plans. But it isnt bad news from our position.
GXY's SDV is in
Argentina,
not Chile. So it would be like Australians panicking that New Zealand banned the sale of beer...
GXY is looking to sign up with Posco, who's tech is based on much lower water use.
And yet again the planned Lithium production levels will fall short of the mark. Morgan Stanley's Lithium report numbers rely on
all the Lithium forecasted production to come through (and some rediculously low demand numbers along side).
As the experts have been saying...
It wont happen.
