Chilean regulators are investigating a safety incident at Albemarle Corp.’s (NYSE: ALB) lithium processing facility in northern Chile, adding to supply concerns that have driven up lithium prices globally.
The incident involved the rupture of an acid-carrying pipe at the company’s La Negra plant near Antofagasta last week, according to local lawmaker Jaime Araya, who requested the investigation. No injuries were reported.
Charlotte, North Carolina-based Albemarle said Tuesday the plant “is currently operational” and that lithium sales are not expected to be affected. The company did not provide additional details about the incident.
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The investigation comes as lithium markets face heightened volatility following the suspension of a major Chinese mine. Lithium carbonate futures on China’s Guangzhou Futures Exchange surged nearly 8% this week, with Tuesday’s session showing an additional 5.3% gain to 84,760 yuan per ton.
Albemarle’s Chilean operations are significant to global lithium supply, representing roughly 24% of Chile’s total lithium carbonate output in 2025, with most production exported to China. The company’s total production capacity in Chile is 80,000 metric tons annually.
The speculation has contributed to a broader rally in lithium prices that began Monday when Contemporary Amperex Technology Co. (CATL), the world’s largest battery maker, suspended production at its Jianxiawo mine in China after its license expired.
Chile’s mining regulator and labor office are conducting the investigation. The labor inspector’s office confirmed an investigation is underway but declined to provide details, citing the ongoing review.
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