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Lithium stocks, including Albemarle Corp (NYSE: ALB), Sociedad Quimica Y Minera S.A. (NYSE: SQM), and Livent Corp (NYSE: LTHM) are trading lower Friday after Chilean President Gabriel Boric shared plans to nationalize the country’s lithium industry and create a separate state-owned company to produce the metal used to make electric vehicle batteries.
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Boric proposed to issue future lithium contracts as public-private partnerships with state control, Reuters reports.
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He added that the government would not terminate existing contracts with Sociedad Quimica Y Minera and Albemarle but seek state participation before contracts expire.
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In 2022, Chile accounted for nearly one-third of global lithium production, with its lithium mine output estimated at 39 thousand metric tons.
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Also, Warren Buffett-backed EV maker BYD Company (OTC: BYDDY) (OTC: BYDDF) proposes to build a $290 million lithium cathode factory in Chile in Chile’s northern Antofagasta region.
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The Chilean government has named BYD as a qualified lithium producer.
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The facility will use lithium carbonate to produce 50,000 tonnes of lithium iron phosphate (LFP) per year for the cathodes.
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The factory will likely begin operations in 2025 and create 500 jobs.
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Price Actions: ALB shares traded lower by 3.26% at $186.75 premarket on the last check Friday. SQM shares traded lower by 8.93% at $71.05, and LTHM shares traded lower by 2.88% at $21.22.
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This article Lithium Stocks Are Falling Today: What’s Going On? originally appeared on Benzinga.com
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