Chile fines Albemarle for lithium extraction violations

Core Viewpoint - Albemarle has been fined nearly $340,000 by Chile's environmental regulator for exceeding water extraction limits at its lithium operations in the Atacama salt flat, highlighting ongoing tensions between the company and Chilean authorities [1][3]. Group 1: Regulatory Violations - The Superintendence of the Environment (SMA) reported that Albemarle exceeded its approved water extraction limits, averaging 452.3 liters per second from October 2019 to September 2020, which is above the authorized amount under its environmental permit [1]. - In early 2021, Albemarle failed to adhere to required safeguards under its Aquifer Alert Sector plan, including not reporting the activation of a key indicator and not reducing brine extraction as mandated [2]. Group 2: Industry Context - The fine represents a significant point of contention in Albemarle's relationship with Chilean regulators, who have been closely monitoring water and brine usage in the fragile Salar de Atacama ecosystem [3]. - Competitor SQM is also under similar scrutiny as both companies aim to expand lithium production to meet the increasing demand for electric vehicle batteries [3].