Chile gives Albemarle option to boost lithium quota by 240,000 metric tons
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2024
0mins
Source: reuters
- Chile's Economic Development Agreement: CORFO reached an agreement with Albemarle to allow the U.S. company to increase its lithium production quota by 240,000 metric tons.
- Albemarle's Production Increase: The agreement would boost Albemarle's production quota by almost 50% from the current 460,000 metric tons of lithium metal equivalent.
- Sustainability Requirements: Albemarle must demonstrate the use of sustainable technology like direct lithium extraction, engage with local indigenous communities, and secure environmental permits to access the higher production quota.
- Settlement Terms: Albemarle agreed to pay $15 million to resolve a complaint by CORFO regarding underpaid commissions, leading to the agreement for increased production.
- Implications and Clauses: The pact aims to anticipate higher sustainability standards in lithium production at Salar de Atacama, Chile, and introduces new terms for setting a "preferential price" for lithium products in the country.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
