Dryblower and the great lithium surprise which wasn't actually a surprise

A LOT happened in the lithium world last week, but unless Dryblower is mistaken not much changed, apart from a few investors getting overdue exposure to economics 101, specifically the chapter dealing with supply and demand.

Dryblower and the great lithium surprise which wasn't actually a surprise Dryblower and the great lithium surprise which wasn't actually a surprise Dryblower and the great lithium surprise which wasn't actually a surprise Dryblower and the great lithium surprise which wasn't actually a surprise Dryblower and the great lithium surprise which wasn't actually a surprise

The big event, which caused a mild dose of panic, was confirmation that Chile’s leading lithium producer, SQM, had finally won government approval to expand production at its low-cost brine operations high in the Andes.

In theory, SQM could lift its annual output from 66,000 tonnes of lithium carbonate a year to 216,000 tonnes by 2015, and even higher in the future.

Within minutes the share price of every lithium stock in the world fell, including that of SQM which shed 2% on the New York Stock Exchange.

In Australia, lithium favourites such as Pilbara Minerals, Altura, Orocobre, Galaxy and Mineral Resources, fell further with roughly 10% the common the post-SQM expansion effect.