lithium investment possibilities

[tikotiko]

HUGE NEWS!!! I posted this in the other site also.

REALLY HUGE news hot off the press in case it was not shared earlier.

https://www.marketwatch.com/press-release/lithium-americas-announces-strategic-transaction-with-ganfeng-lithium-to-jointly-advance-cauchar-olaroz-2018-08-13

I need to read it in more detail and digest it, but it basically states that Ganfeng will replace SQM in Cauchari. LAC’s share of the pie will increase from the current 50% to 62.5% (good) with Ganfeng owning the remaining 37.5%. SQM’s exit should cause some concern due to its expertise with brine, but Ganfeng should be capable and is providing extra help to get the plant producing by 2020 (e.g., $ help). I just hope that the new alliance will not require a long learning curve so the plant produces by 2020.

The deal appears to be another example of China trying to control of the lithium market, much the same as Tianqi’s recent attempt with SQM in Chile. I am also surprised that SQM is deciding to leave such a great Salar in Argentina (or maybe it isn’t?), where the tariffs paid to the government are much lower than the tariffs in Chile.

As I said earlier, We all need to read this announcement carefully to assess it, but I thought it was important to share it here immediately due to its relevance. My initial reaction is that it is a bit of a mixed bag, which may not be good with the recent lithium pains, but the market will be the decider.