On Friday, Lithium stocks, such as Albemarle
Corp (NYSE: ALB), Sociedad Quimica Y Minera
S.A. (NYSE: SQM), and Livent Corp (NYSE:
LTHM), experienced a decline in trading
following the announcement by Chilean
President Gabriel Boric regarding the
nationalization of the country's lithium industry.
Boric plans to create a separate state-owned
company to produce lithium used in electric
vehicle batteries and issue future lithium
contracts as public-private partnerships with
state control. While existing contracts with
Albemarle and Sociedad Quimica Y Minera will
not be terminated, the government plans to seek
state participation before they expire. Chile is
responsible for almost one-third of the world's
lithium production, with its lithium mine output
estimated at 39 thousand metric tons in 2022.
Furthermore, BYD Company (OTC: BYDDY)
(OTC: BYDDF), the Warren Buffett-backed EV
maker, plans to construct a $290 million lithium
cathode factory in Chile's northern Antofagasta
region. The Chilean government has designated
BYD as a qualified lithium producer. The factory
will produce 50,000 tonnes of lithium iron
phosphate (LFP) per year for the cathodes,
utilizing lithium carbonate, and will likely
commence operations in 2025, generating 500
jobs.
As of the last check on Friday, ALB shares were
trading down by 3.26% at $186.75 premarket,
SQM shares were down by 8.93% at $71.05, and
LTHM shares were down by 2.88% at $21.22.
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