Albemarle receives permission to increase lithium brine extraction in Chile

Albemarle Corporation, one of the leading producers of lithium and lithium derivatives, has been granted approval by the Environmental Assessment Commission (CEA) of the Antofagasta Region to increase its currently authorised lithium brine extraction rate at the company's facility in the Salar de Atacama, Chile. The increase will enable the company to meet the accelerating demand for lithium, especially high purity lithium compounds required for the production of lithium batteries.
 
In addition, Albemarle has entered into a memorandum of understanding (MOU) with the Chilean Government defining the terms of a partnership for an increased lithium quota consistent with the principles and goals of the Lithium National Commission, as established in its final report issued in January 2015.
   
The MOU provides Albemarle with sufficient lithium to support the production, over a 27-year period, of 70,000 metric tonne (MT) annually of technical and battery grade lithium carbonate and 6,000 MT annually of lithium chloride at Albemarle's two manufacturing facilities in La Negra, Antofagasta, as well as at a third lithium carbonate facility that Albemarle will commit to construct under the MOU.
 
As per the terms of the agreement, Chilean Government will receive commission payments based on sales price per MT and Albemarle will extend research and development support for lithium applications and solar energy in Chile. In addition, the MOU provides Albemarle with an exclusive option for an additional lithium quota in connection with the development of lithium hydroxide production directly from brine. 
 
Luke Kissam, president and CEO of Albemarle Corporation, said, “This agreement will not only establish Chile as the global leader in the production of value-added lithium-based products, it provides economics that justify Albemarle's continued investment in the region.  As a result, we will be better positioned to capture 50 percent of the growth in lithium applications and solidify our leadership position in the industry.”