Lithium prices have surged following reports of a significant safety incident at Albemarle’s lithium operations in Chile, leading to partial production suspensions. Benchmark Mineral Intelligence (BMI) reported hearing about the incident from multiple market participants, though confirmation is still pending. Albemarle is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The company develops and manufactures highly engineered specialty chemicals that meet a broad range of needs.
According to BMI lithium analyst Cameron Perks, speculation surrounding the incident appears to have already contributed to the recent strength in lithium carbonate futures prices. The lithium carbonate futures on the Guangzhou Futures Exchange experienced a sharp increase, climbing as much as 7.9 per cent on Tuesday afternoon.
The price settled with an increase of 5.3 per cent to 84,760 yuan per tonne. Prior to this, futures had already jumped 8 per cent on Monday following reports that battery manufacturer CATL had suspended operations at a major lithium mine in China.
Albemarle’s Chilean operations are a key player in the global lithium market, accounting for roughly a quarter of Chile’s total lithium carbonate output, with the majority of this production being exported to China. The potential disruption to supply has further fuelled concerns and driven up prices in the already volatile market.
