Lithium Stocks Are Falling Today: What's Going On? - Albemarle (NYSE:ALB), Sociedad Quimica Y Minera (NYS

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.
Boric proposed to issue future lithium contracts as public-private partnerships with state control, Reuters reports.
He added that the government would not terminate existing contracts with Sociedad Quimica Y Minera and Albemarle but seek state participation before contracts expire.
In 2022, Chile accounted for nearly one-third of global lithium production, with its lithium mine output estimated at 39 thousand metric tons.
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.
The Chilean government has named BYD as a qualified lithium producer.
The facility will use lithium carbonate to produce 50,000 tonnes of lithium iron phosphate (LFP) per year for the cathodes.
The factory will likely begin operations in 2025 and create 500 jobs.
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.

To add Benzinga News as your preferred source on Google, click here.