SQM - Chile: Impact Of National Election Results On Albemarle SQM And Beyond

• There has been a considerable hype about lithium after the results of the first round of the national elections in Chile.
• This was aggravated by declarations of the candidate of the left regarding a possible nationalization of lithium in the country with the most reserves of the white metal on earth.
• These events were quite damaging to SQM and Albemarle, the two lithium operators in Chile, but could also have affected the energy lithium value chain as a whole.
• As for the possibility of a lithium nationalization in the near term in Chile, it is argued that this might be unlikely for at least two reasons.
• One, that SQM and Albemarle have contractual arrangements until 2030 and 2044, respectively, and two, that the Chilean Congress will be controlled to a certain extent by the opposition.

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