Albemarle, Corfo announce resolution in Chile
Albemarle announced that the company has reached an agreement with the Chilean Economic Development Agency (Corfo) on the process for establishing and validating the preferential price and terms to be offered to specialized manufacturers meeting the criteria set forth in the Amendment. As a result, Corfo will not file the previously disclosed arbitration claim. In December 2016, Albemarle and Corfo entered into an Amendment to the Basic Agreement to increase the company's authorized lithium quota to 2 million metric tons on an LCE basis. The Amendment provides Albemarle with the right to produce over 80,000 MT annually of technical and battery grade lithium salts through at least 2043 at its expanding battery grade manufacturing facilities at La Negra, Chile. In 2019, Albemarle will produce 40,000 to 45,000 MT on an LCE basis in that facility, and the expansion of that site to the full 85,000 MT remains on track to begin commissioning in 2020. "We are pleased to have jointly developed this process that meets the spirit of the Amendment with Corfo and is in line with what we expected our commitment on preferential pricing and terms to be," said Eric Norris, Albemarle President Lithium. "The agreed upon process will have no material impact on our anticipated earnings growth, margins or other financial results."