Chemicals firm Albemarle Corp. (NYSE: ALB) seems to be unfazed by the results of Chile’s national elections and what it means for its lithium operations. The South American country’s polls on Sunday proclaimed lawmaker Gabriel Boric as president-elect.
Boric ran on a platform of overhauling the market-oriented economic system in the country. During the campaign, the incoming president criticized lithium industry privatization and argued for a national lithium company.
Chile remains to be one of the world’s largest reserves of lithium. The government also operates global copper producer Codelco.
After Boric’s proclamation, shares of Albemarle and Chilean-based rival SQM dipped earlier this week.
But the North Carolinian firm is confident that it does not expect “the new administration will have any impacts on [its] operations in Chile,” citing its long-term contract with the government.
“We remain committed to maintaining our strong relationships in Chile, producing sustainable lithium for the world and generating development for the country,” the company’s spokesperson Kelli Hopp-Michlosky said in a statement to Reuters. “We have a unique, long-term contract with the state of Chile.”
The current contract allows the firm to operate in the country until 2043.
Boric is slated to take office in March 2022.
Albemarle last traded at US$227.90 on the NYSE.
Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.