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Uncertainty still looms over Chile's lithium industry

Uncertainty still looms over Chile's lithium industry

FromKitco NEWS Roundtable


Uncertainty still looms over Chile's lithium industry

FromKitco NEWS Roundtable

ratings:
Length:
32 minutes
Released:
Apr 28, 2023
Format:
Podcast episode

Description

 After Chile's President Gabriel Boric announced a nationalization plan for his country's lithium sector, miners are still striving to understand what the ruling means, noted Fastmarkets William Adams.  On Friday Adams recorded Kitco Roundtable with mining audiences manager Michael McCrae and correspondent Paul Harris. Adams is head of battery metals research at Fastmarkets.  Last week lithium miners dropped on news that Chile plans to nationalize its lithium sector, the world's second largest producer of the metal essential in electric vehicle batteries. The government said that nationalization would boost the country's economy and protect its environment. After the news lithium giant Sociedad Quimica y Minera de Chile (SQM) dropped 18% to $63.44 a share. Albemarle slid 10% to $173.75. The lithium space had already been hit by falling lithium prices, which Benchmark Mineral Intelligence says is down by half since the start of the year. Adams said that there is not much clarity about the government's plans. Current contracts are supposed to be exempt from the government's new initiative.  "All these negotiations are going to take a long time," said Adams. "That creates a lot of doubt. It's going to take a long time before we get clarity. In the meantime, I think the danger is that it threatens further investment."
Released:
Apr 28, 2023
Format:
Podcast episode

Titles in the series (100)

Join Kitco Kitco correspondent Paul Harris and mining audiences manager Michael McCrae who highlight the biggest news in precious metals and mining.