Chile's Corfo says will file arbitration suit against Albemarle by Dec. 15

|About: Albemarle Corporation (ALB)|By:, SA News Editor

Chilean state development agency Corfo will present an arbitration lawsuit against Albemarle (NYSE:ALB) to the International Chamber of Commerce by Dec. 15, its vice president says, alleging the world’s top lithium producer had failed to adhere to the terms of a contract drawn up in 2016.

Under the contract, ALB must provide as much as 25% of its annual production at a discount to companies seeking to produce battery metals within Chile, but the Corfo VP says ALB’s initial "preferential price" offer was too high and had violated the terms of the contract, prompting the agency to press ahead with arbitration.

ALB has protested what it considers the "substantial difference" between the contractual agreement and the amount Corfo now demands.

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