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.