Chile Unveils Public-Private Model to Share Vast Lithium Riches with Mining Industry
- State to control majority in partnerships with companies
- SQM shares headed for a record drop; Albemarle also tumbled
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Chile delivered its long-awaited lithium policy late Thursday, giving the state a majority stake in all new contracts and sending shares in the two current producers in the South American nation — SQM and Albemarle Corp. — tumbling.
While the government will respect existing arrangements with the two companies, both would move to the state-controlled model once contracts expire in 2030 and 2043, respectively. Alternatively, they could opt to give up a majority stake in their operations before then. SQM shares were down a record 20% at 3:35pm in New York, while Albemarle lost 10%.