Lithium Squeeze Looms as Top Miner Front-Loads, Chile Says

  • SQM quota to mine in Atacama could run out in 2022, Corfo says
  • Agency says Albemarle growth may not be enough to cover demand
Photographer: Marcelo Perez del Carpio/Bloomberg
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Plans by one of the world’s top lithiumBloomberg Terminal producers to accelerate output could lead to a shortage of the light metal used in electric-car batteries in five years, according to the Chilean government’s development agency.

Soc. Quimica & Minera de Chile SA last month announced plans to increase its capacity to produce lithium carbonate from 48,000 to 63,000 metric tons a year. At that rate, it would reach its output limit of about 1 million tons well before the concession with Corfo, which owns the land, expires in 2030. Extracting more from the area would require applying for new licenses. SQM is embroiled in a dispute with Corfo over royalty payments.