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To expand its output, U.S.-based Albemarle Corp. signed a new contract in 2016 that requires it to pay royalties of up to 40%, an industry high. Hoping to add value domestically rather than just export raw material, the government required Albemarle to provide up to 25% of its lithium production at a low market price to companies processing it locally. The company also gives part of its sales to indigenous communities.
“If lithium regulation in Chile was like copper regulation, I can assure you there would be a lot more mines,” said Albemarle’s country manager in Chile, Ignacio Mehech. “We have to be able to produce the lithium that the world needs.”
The Place With the Most Lithium Is Blowing the Electric-Car Revolution
A California-sized piece of South America is stifling production of the metal at a time when battery makers desperately need it
Evaporation ponds at an Albemarle Corp. lithium mine in Chile. Chile—Hailed as the Saudi Arabia of lithium, this California-sized chunk of terrain accounts for some 55% of the world’s known deposits of the metal, a key component in electric-vehicle batteries.
Link.. If you don't subscribe I don't think it will open.
https://www.wsj.com/articles/electric-cars-batteries-lithium-triangle-latin-america-11660141017?mod=hp_lista_pos5
Took a minute; but BBB lite! Not bad Dan!!
Good thing it was "Lite"...
Considering it takes seven years to build a mine and refining plant but only 24 months to build a battery plant, the best part of this decade is needed to establish an entirely new industry in the United States," said Simon Moores, chief executive of Benchmark Mineral Intelligence.
The Inflation Reduction Act (IRA) includes a $7,500 tax credit for new electric vehicles, but to win the full credit, EV makers have to source in 2023 at least two-fifths of battery materials from the United States or free trade agreement (FTA) partners such as Canada, Chile and Australia or recycle it in North America.
On the stock summary page it is shown. hope this stays put!
The question - in those batteries are other valuable metals besides lithium. Nickel, Manganese & Cobalt.
Since they are a chemical company and deal with all kinds of material I would think they would reclaim everything they can. Yes?????????
I would have expected ALB to be up more than the overall market today leading into earnings. Seemed like a nice setup with a little weak hand selling yesterday before ALB reports followed by positive market futures this morning.
I am confident that ALB will give us good news tonight but are people determined to get ahead of everyone else selling their winners in anticipation of the economy and overall market going down??? Seems like the worst case technical outcome tonight would be if management claims they don't have enough visibility to Q4 pricing to raise full year guidance again. Obviously the catalyst division will struggle with natural gas pricing and availability in Europe too, but that should be no surprise.
Full disclosure I bought a smidge more ALB at $240 today in anticipation of ALB telling us what they plan to do with all of the new Spodumene Concentrate production that is coming online this year.
$ALB $LAC
In addition to the massive earnings beat on pricing, they have also now added about 20kTPa of tolling to the volume projections going forward. Looks like Kemerton remains on a slow ramp as the organic Lithium Hydroxide production isn't going up significantly until next year.
Outlook of $19.25-$20.25 adjusted earnings per share for 2022 is a massive raise. Of course now that we are going to be cash flow positive people can start carping about our GAP PE 😉
https://investors.albemarle.com/static-files/9324ac04-fbd0-40df-9279-80c959e55302