Chile fines Albemarle for lithium extraction violations

[Redator]

Chile’s environmental regulator has fined Albemarle (NYSE: ALB) nearly $340,000 for violations at its lithium operations in the Atacama salt flat, escalating tensions between the world’s top lithium producer and Chilean authorities.

The Superintendence of the Environment (SMA) said Albemarle exceeded its approved water extraction limits between October 2019 and September 2020, drawing an average of 452.3 litres per second, which is above what was authorized under its environmental permit. 

The regulator also found the North Carolina-based company failed to follow required safeguards under its Aquifer Alert Sector plan in early 2021, including not reporting the activation of a key indicator and not reducing brine extraction as mandated.

Both charges, which were originally filed in 2022, were deemed serious, according to the sanctioning resolution issued on Tuesday.

The fine is the latest flashpoint in Albemarle’s fraught relationship with Chilean regulators, who have long scrutinized water and brine use in the Salar de Atacama, a fragile desert ecosystem.

Competitor SQM (NYSE: SQM) faces similar oversight as both companies expand production to meet soaring demand for lithium, a key component in electric vehicle batteries.