SQM hits more obstacles on path to lithium expansions

Q3 has proved to be another milestone quarter in SQM’s attempts to expand its lithium production.

Firstly, the Chilean water authority challenged the water extraction rights of mining companies in the Atacama. This is not expected to have a direct impact on lithium producers but may create a potential longer-term hurdle to future expansion in what is already a difficult licensing environment.

Secondly, and potentially more worryingly, the Western Australian (WA) government ruled against bypassing certain requirements, which may see Kidman Resources struggle to obtain the permits needed for their new spodumene operation. This is a decision that . . .