In a move which can best be described as channeling Salvador Allende, the government of Chile will leave no stone unturned in its quest to turn a growth industry into a decrepit organ of the state.
The shock move in the country with the world’s largest lithium reserves would in time transfer control of Chile’s vast lithium operations from industry giants SQM and Albemarle to a separate state-owned company.
As is usually the case, central planners are late to the party:
The announcement by Chile did not trigger a reversal in lithium prices which as we noted previously, have plunged more than 70% from a November peak due to weakening EV demand in China, the world’s biggest auto market. The most-traded lithium carbonate futures on the Wuxi Stainless Steel Exchange in China fell 3.4%.
Why does everything the left touches turn to s#it ???
Because they all march to the Beijing beat.
It has Venezuela written all over it.
Where is Pinochet when you really need him?
How to strangle a growing industry in a few simple statist steps. The phrase “more equitable distribution of profits” generally means into the glorious leader’s personal bank accounts.
So they’ll be seizing all the chinese owned companies that are exploiting them then?
Also, can we expect them to be delisted from the TSX-V exchange?
How long before every land fill is contaminated by lithium? How do you recycle it? I burns well I’m told.
The mouldering corpse of Pinochet groans— in the distance, helicopter engines can be heard.
Who is John Galt? or should that be Francisco d’Anconia?
It is easy to pick on Chile, but meanwhile in cana-duh Brookfield Properties have again defaulted on a major real estate loan (I wonder which consortium of wonderful cana-duh banks hold those trash bonds and how they are recorded on their balance sheets?) and the only way that industry can be persuaded to move here is by providing $14,400,000,000 loans to build a car battery factory.
We are a turd world country, victim to every savvy investor.