U.S. lithium firm Albemarle plans to more than double Chile output

Wealth Minerals

02/02/2016 14:05

SANTIAGO, Feb 2 (Reuters) - U.S. lithium producer Albemarle 
has signed a deal with Chile to significantly increase its 
output of lithium at a time when interest in the mineral that 
powers electric car batteries is heating up. 
    Albemarle Corp  ALB.N  unit Rockwood will invest between 
$400 million and $600 million in the next four years to increase 
its production of battery-grade lithium carbonate from Chile to 
70,000 tonnes from its current 24,000, the economy ministry said 
in a statement late Monday. 
    The Chilean government wants to ensure the country will 
benefit from its natural bonanza and said it will earn up to 
$100 million annually in taxes and royalties as a result of the 
Albemarle deal. The company also will support the research in 
Chile of lithium applications and solar energy. 
    Salt flats in the remote north of Chile and neighboring 
Bolivia hold some of the world's largest reserves of lithium, an 
important ingredient in rechargeable batteries. Chile currently 
is the second largest producer globally, after Australia. 
    "The (planned) increase will enable the company to meet the 
accelerating demand for lithium," Albemarle said in a statement. 
    A scramble to secure lithium resources has been gathering 
pace as prices for the mineral have steadily risen, bucking the 
global commodities trend. Annual demand is forecast to more than 
double by 2020 from 95,000 tonnes now. 
    In recent weeks, state copper firm Codelco  COBRE.UL  has 
announced tender plans for two reserves and U.S. electric 
vehicle maker Tesla  TSLA.O  was rumored to be in Chile meeting 
with the government.  urn:newsml:reuters.com:*:nL2N15915I 
    On Monday, Canada's Wealth Minerals  WML.V said it was in 
talks to buy Li3, a firm that owns lithium assets in Chile. 
    Chemicals firm Albemarle spent $6.2 billion to buy Rockwood 
last year. 
 
 (Reporting by Rosalba O'Brien; Editing by Bill Trott) 
 ((rosalba.obrien@thomsonreuters.com, Twitter: @rosalbaob; +56 2 
23704250; Reuters Messaging: 
rosalba.obrien.thomsonreuters.com@reuters.net)) 
 
Keywords: ALBEMARLE CHILE/