This could have been a move to keep private companies from selling rights to foreign entities. Mainly China, who has been trying to corner the lithium markets for awhile. China is already heavy in South America.

https://www.digitaljournal.com/pr/ultra-lithium-enters-joint-venture-agreement-with-yahua-and-announces-private-placement

Interesting

Is this good or bad for psych patients?

Seems like a reasonable move. Our system of public officials taking bribes to approve sales of vital resources to hostile foreign interests hasn't worked very well.