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Dec 22 (Reuters) – Albemarle Corp doesn’t count on its Chilean lithium operations to be affected by President-elect Gabriel Boric’s administration as a result of its lengthy historical past within the nation and “distinctive” contract to supply the electrical car battery metallic.
Boric, a 35-year-old leftist lawmaker who takes workplace in March, by a double-digit margin on a platform of overhauling Chile’s market-oriented financial system. He repeatedly criticized lithium trade privatization in the course of the marketing campaign.
Chile has the world’s largest reserves of lithium, most of which is present in brine that flows beneath the nation’s distant Atacama desert.
The election outcomes , pushing down shares of Charlotte, North Carolina-based Albemarle and Chilean-based rival SQM earlier this week. However Albemarle stated it was unfazed and famous it has a contract to function in Chile till at the very least 2043.
“We now have been current within the nation for greater than 40 years and plan to be there for a lot of extra,” Albemarle spokesperson Kelli Hopp-Michlosky stated in an emailed assertion to Reuters on Wednesday. “In essence, we don’t count on that the brand new administration can have any impacts on our operations in Chile.”
Albemarle famous that Boric stated in the course of the marketing campaign he did not plan to nationalize lithium operations and would look as an alternative to create a nationwide lithium firm. Chile’s authorities already operates Codelco, the world’s largest copper producer.
Albemarle additionally famous it pays a lithium royalty fee that may be as excessive as 40%, the best lithium royalty on the earth, offers cash to communities residing close to its operations and funds water stage research.
“We stay dedicated to sustaining our sturdy relationships in Chile, producing sustainable lithium for the world and producing growth for the nation,” Hopp-Michlosky stated. “We now have a novel, long-term contract with the state of Chile.”
Reporting by Ernest Scheyder; Modifying by Muralikumar Anantharaman