In addition, the company announced that it has entered into a Memorandum of Understanding (MOU) with the Chilean Government defining the terms of a partnership for an increased lithium quota consistent with the principles and goals of the Lithium National Commission, as established in its final report issued in January 2015.

The MOU provides Albemarle with sufficient lithium to support the production, over a 27-year period, of 70,000 MT annually of technical and battery grade lithium carbonate and 6,000 MT annually of lithium chloride at Albemarle’s two manufacturing facilities in La Negra, Antofagasta, as well as at a third lithium carbonate facility that Albemarle will commit to construct under the MOU.

The MOU provides for commission payments to the Chilean Government based on sales price/MT and Albemarle’s support of research and development in Chile in lithium applications and solar energy. In addition, the MOU recognizes the principle of community value sharing and acknowledges the cooperation agreements that Albemarle has entered into with local, indigenous communities under which Albemarle provides financial support for social, environmental and economic development. Finally, the MOU provides Albemarle with an exclusive option for an additional lithium quota in connection with the development of lithium hydroxide production directly from brine.

The definitive agreement is expected to be executed by the end of the first quarter 2016.