The country's state development agency says Albemarle has failed to provide as much as 25% of its annual production at a discount to companies seeking to produce battery metals within Chile, as stipulated in a contract signed in 2016.
Albemarle Mining News
Mineral Resources shares spiked on the news, closing Thursday 26.6% higher at A$15.76.
The applicant does not present the details necessary to rule out significant adverse impacts on the soil, water and air.
Lithium sales rose less than 1% as production slipped due to unexpected shut downs at three of our lithium manufacturing sites - Albemarle
Albemarle failed to make a "serious" offer for its annual production capacity to be provided at a discounted rate - Corfo
Shares of Albemarle Corp fell more than 2 percent on Monday.
Albemarle requested an increase of 258,446 metric tons of Metallic Lithium Equivalent but the government says the information provided was not sufficient to justify the increase.
Albemarle aims to eventually end its dependence on two smaller units to fund growth as global appetite surges for electric vehicles and consumer goods.
Chile is preparing major new restrictions on the extraction of water from the lithium-rich Salar de Atacama salt flats, home to top lithium miners Albemarle and SQM.
Short selling of shares in lithium miners SQM, Albemarle, Galaxy and Orocobre has ballooned this year, reflecting a sign of growing scepticism.
China is home to the majority of the world's lithium processing facilities and sucks up most output of top producer Australia.
While lithium today isn’t the linchpin of Chile’s economy (that would be copper), miners are aggressively expanding production.
There is an emerging oligopoly in one of the hottest elements on the periodic table, lithium.
Albemarle has said it could invest $1 billion in Chile over the next five years if the plan was approved.
“Look at what’s required over the next 50 years, 60 years, and known lithium on the planet, I don’t think it’s as much as everyone understands it to be.”