If the below happens where they have to halt production and mind you the largest producer in the world, to already severe tight supply, you will see the share price and lithium price make After pays rise and the speed of the rise, SLOWLaborWoes Spread From Copper to Lithium in Major Exporter - Bloomberg
Chile’slabor woes are spreading from copper to lithium, as members of a union at oneof Albemarle Corp.’s sprawling brine-processing operations walked off thejob. The 135 members of the Salar union began a strike Wednesday after failingto reach a wage agreement in collective bargaining with management. In aletter, union leaders accuse the company of anti-union practices and said theyare pushing for improvements in working conditions and wage equality. Thecompany said it regrets the union’s decision and remains confident of reachinga deal as it has without disputes with three other unions. Albemarle hascontingencies in place to continue operating, although much would depend on howlong the strike lasts. The U.S.-based company is the world’s biggest producerof lithium and Chile is the No. 2 exporter. The lithium laborstoppage comes at a time of tightening global supplies of the metal used inrechargeable batteries, and adds to strike risks in Chile’s giant copperindustry where three mines are facing disruptions are far higher at BHPGroup’s giant Escondida mine, where union members are voting on a final wageoffer. The windfall enjoyed by metal producers is emboldeningworkers, with host nations also looking at ratcheting up taxes to help resolveinequalities exacerbated by the pandemic. In Chile, that’s all playing out asthe nation drafts a new constitution that may lead to tougher rules on water,glaciers, mineral and community rights, with presidential elections inNovember. At the same time, companies are striving to keep labor costs in checkin a cyclical business and as input prices start to rise. Albemarle has twoproduction sites in northern Chile: the Salar plant in the Atacama desert andLa Negra near the city of Antofagasta. More than 700 people work in the twosites, according to the company’s website.
