Albemarle brings in flexible lithium contracts to aid price recovery

New structures to lithium contracts will provide more flexibility to raise prices in response to improving market conditions, United States-based lithium producer Albemarle said during an earnings call on Thursday February 18.

The call followed the release of the company’s full-year and fourth-quarter financial results for 2020.
Eric Norris, the company’s president of lithium operations, said that new contracts would vary between being based on a fixed price or a variable-pricing mechanism.
“I can give you examples of some customers who want a fixed price, they want the stability, [but] we’re not going to agree to that unless it’s well above market,” Norris said.
“But that’s one segment of the customer base. Another segment, and a big chunk, wants some variability, to say that they’re able to move with the marketplace relative to their competitors or other sources of supply they buy,” he added.
“As a result, those contracts will have that kind of market-based component to them,” he said.

“The degree to which we give that flexibility also dictates how much of a commitment...

Published

Dalila Ouerghi

February 19, 2021

20:33 GMT

London