 Good day, fellow investors. I'm currently researching fertilizer stocks because I see some opportunities there. I want to know what is the balance in the market. And one of the fertilizer stocks on my list is SQM, Societad Quimica de Chile. It's not more a fertilizer stock. It became over the last two, three years a lithium stock. So I said, okay, I looked at the company. Why not discuss my views over lithium? Because there have been and there are constantly questions. What do you think about lithium? And now as the price of lithium is down and many investments are past the exuberant phase, it might be a good time to check. I'll discuss SQM. I'll go more into the lithium because the production, the expansion, the pluses and the minus minuses. And then we'll see, again, where it leads us from an investment standpoint, long-term conclusion and how you could invest. I think lithium is more for traders. They can base it on some fundamental analysis. I'm personally more for safety, more value. But lithium can be a good investment, but can also go wrong as it did in the last six months to one year. So let's see. So SQM at the glance, as I said, it went really on to lithium and produce as much lithium as they can due to increased demand. They are betting on energy storage demand. They see huge growth, annual growth in demand, what 12% and even higher, even 16 to 20% possible growth in demand. So there will be a lot of demand for lithium they expect. And then we'll see, they expect to make a lot of money there. They're already making a lot of money on lithium. 50% of their profits are coming from lithium or came from lithium last year. They are expanding. They are investing into the Mount Holland project in Australia, which they hope will significantly increase their lithium production. However, when we look at lithium prices, the initial boom has passed. So we have seen at the beginning of 2018, it was really booming. Since then, prices have significantly declined as there is more and more investment into the sector. Many new producers are coming. High prices always do that in a commodity. So what is crucial is to balance what will happen, what will be the production expansions, what will be the demand. And that's something very, very hard to do, which makes this a very tricky play. On a valuation, that's very easy to make. If we look at what Chunky lithium paid for SQM's stake, 23%, 65% per share in cash, and you compare to the current stock price, you see, okay, it is undervalued from an ownership perspective because Chunky was happy to pay much, much more. So we have to see, okay, from a large owner perspective, where I want to control the lithium supply in the world, it's one price. From a small retail investor, let's see what is the price. They plan to triple production, especially as they develop their mine in Australia. The project economics from their joint venture, I see an internal rate of return of 26%, cash operating costs $4,500. So compared to a price of 15,000 per ton should be profitable, should lead to profits, the post-tax net present value 10%, finally a miner using 10% is 2.2 billion. So if you look at that net present value, it's not that much compared to SQM's market cap. However, what's indicative here is not so much the project timetable is that from exploration, it doesn't take really much time to build a lithium mine. So it's not like a copper mine, a gold mine that it takes ages to build. This is surface still in the first stages of lithium discovery, and mines are ramped up quickly. Something that is very important for lithium investors to watch is the Yadar, the Yadarite mine in Serbia from Rio Tinto, with easily 2,500,000 tons of additional supply to the market. I don't know how much will they produce in the first years, but still very significant. Albert Marl is also increasing, hoping of achieving significant growth, new lithium resources in development with goal of 265,000 tons of lithium to be added. And then you see at the electric vehicle and lithium outlook, it all depends on battery storage, on the technology in the batteries. Some expect high electrical vehicle penetration. I think it will be more focused on battery storage and solar as soon as the battery storage costs drop. And then you will have another boom in lithium. So if you want to invest, it's because the projections are very volatile. You don't know what will be the lithium demand. I would say, okay, this is for trading. So you have to carefully apply your portfolio exposure, trade, take advantage of exuberance, buy in fear. And then I think you can do well. But as I'm not a trader, this is not really for me because when I look at the risks, it is, okay, what will be the average cost of production? Add a profit on that. There will be new production. There is also in Europe, there is a lot of lithium, but you have to find it and then produce it. Lithium Americas also developing two projects in South America and North America. So on the risk also, what are the alternatives to lithium? We never know. Everybody is chasing that battery storage technology. Every MIT graduates. So there is a lot of risk for uncertainties. Therefore, I prefer copper. As I said, whatever the battery kind is, you will need the copper to transport the energy. So if there is more demand for all this energy system storage, et cetera, I know copper will be a winner. So that's a value investing. Lithium is more of a bad trading. You can have huge wins, but you can also have losses. So see how that fits your portfolio. Demand will probably grow. The price of lithium depends on the steepness of that growth curve. Will it be big? Will it be slow? Some analysts project lithium prices to even fall as the real demand will only ramp up in a few years, but the projects are already coming online. So it's a very, very interesting sector. But as a value investor, I'm not finding that margin of safety that will prevent me from permanent capital losses. Therefore, each stock here has the potential to do very well in the long term. SQM, I think it's already priced in the growth and increasing profits from the growth in lithium as 50% of profits are from lithium, increased that by three times. So doubling in profits, that's already priced in. So see how that fits your portfolio. There is no value now as a margin of safety. So you can't lose, but there is potential upside and downside. So it's all about risk and reward. As always, when you do such things, the maximum you can lose is 100% of an investment and the upside is unlimited. So I think Peter Lynch would perhaps look at such a stock by 1% of a portfolio and then leave it there for five, 10 years, especially now that lithium is not that much loved as it was a year, a year and a half ago. Thank you for watching any lithium idea stocks. Please share in the comments. I'm sure our viewers would appreciate that. See you in the next video.