Ernest Scheyder

(Reuters) – Albemarle (NYSE:) Corp expects that its Chilean lithium operations will not be affected by the President-elect Gabriel Boric’s Administration due to its extensive history and unique contract to manufacture the battery metal for electric cars.

Boric (a leftist 35-year old lawmaker) won Sunday’s election on the platform of reorganizing Chile’s market-oriented economy system. During the campaign, he repeatedly criticised lithium industry privatization.

Chile boasts the most lithium-rich country in the world. Most of this is contained within the Atacama desert’s brine.

Stocks of Albemarle in Charlotte, North Carolina and SQM in Chile fell earlier this week as investors were worried by the results. Albemarle stated that it wasn’t fazed by the election results and pointed out it still has a Chilean contract for operations until 2043.

Kelli Hopps-Michlosky, Albemarle spokeswoman said Wednesday that “we have been there in the country since more than forty years” and plans to continue to do so for many more. “In principle, we don’t anticipate that any changes will be made to our Chilean operations by the new administration.”

Albemarle observed that Boric had stated in the campaign that he doesn’t intend to nationalize lithium operations but instead would like to set up a national corporation. Codelco is Chile’s biggest producer.

Albemarle pointed out that the company pays a 40% lithium royalty, which is one of the highest rates in the world. The money goes to local communities and it funds studies at the water level.

Hopp Mickelsky stated, “We are committed to keeping our strong relationships in Chile and producing sustainable lithium for all of the world.” We have an exclusive, long-term agreement with Chile.