Albemarle Reneges on Long Term Lithium Contracts
Specialty chemicals producer is no longer honoring its lithium contracts after spot price skyrockets.
August 4, 2022
With lithium prices rising rapidly, Albemarle Corporation (ALB), a specialty chemicals producer, is no longer interested in honoring its long term customer contracts. With electric vehicle (EV) demand driving up the price of tech-grade carbonate and hydroxide 60-130% since the beginning of the year, Albemarle inserted new language in its latest quarterly filing revealing it has torn up certain contracts let before the rise in lithium prices:
“Renegotiated contracts include higher prices on existing long-term agreements that are more reflective of current market conditions.”
In other cases, Albemarle says it has moved from previous long term agreements to index-referenced and variable-priced contracts.
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