, the No. 2 producer, headquartered in the Chilean capital of Santiago. Both companies' stock prices slumped after the new policy was presented amid concern the government will be exerting too much control over future projects.
At Albemarle's plant, it takes about 18 months for the brine to reach optimal concentration. The liquid is then transported over 150 miles via truck to Albemarle's processing facility near Antofagasta, where it's further purified into battery-grade lithium carbonate. "Some people are even talking about Argentina taking away the second position that Chile has now," saidThough Chile is typically viewed as one of the more business-friendly economies in the region, its lithium industry has always been heavily regulated. In 1979, then-dictator Augusto Pinochet categorized lithium as a strategic resource due to its use in nuclear weapons, allowing the government to restrict its extraction.
The plan calls for the creation of a national lithium company to partner with all private businesses looking to enter the sector. It also honors Albemarle and SQM's existing government contracts, which are set to expire in 2043 and 2030, respectively. But Boric has said he plans to negotiate with the two companies for a government stake in their operations before their contracts end.
"We're also quite interested in partnering with them because, of course, we've got more than 40 years experience here and certainly know how to work with brines," she said. The Atacama Indigenous Council represents 18 communities around the Salar de Atacama, and 3.5% of Albemarle's revenue from its Chilean operations goes to the council, which can use the money in any way it sees fit.