Top producer Albemarle risks shutting down German factory if EU declares Lithium a hazard – Will you be disappointed by that?


By Paul Homewood

Only in EU does not work!

LONDON, June 7 (Reuters) – Top lithium producer Albemarle Corp (ALB.N) The Langelsheim plant in Germany may have to be closed if the metal used in electric vehicle batteries is declared a hazardous material by the European Union, its chief financial officer told Reuters.

Lithium’s pivotal role in electric vehicles makes it an important commodity in meeting global targets for cutting carbon emissions, and it has been added to the company’s list of key raw materials. EU in 2020.

However, the European Commission is currently evaluating a proposal from the European Chemicals Agency (ECHA) to classify lithium carbonate, chloride and hydroxide as hazardous to human health.

That would lead to a more restrictive regulatory framework for their use at a time when the EU is aiming to be self-sufficient in batteries for electric vehicles by 2025.

The proposal does not ban imports of lithium, but if legislated, it would increase costs for processors due to stricter rules controlling processing, packaging and storage.

“Albemarle will not be able to import our key material, lithium chloride, putting the entire (Langelsheim) facility at risk of closing,” Chief Financial Officer Scott Tozier said in an emailed statement.

“With approximately $500 million in revenue per year, the economic impact on Albemarle from the potential closure would be substantial,” Tozier added.

Of course, we have been promised millions of new green jobs, based on low carbon technologies. But the harsh reality is that China can produce everything much cheaper than Europe can.

Part of the reason for this is that China can’t come up with environmental standards, while the West is obsessed with ESG. Europe or the United States simply cannot produce lithium batteries for batteries without making them unaffordable or compromising today’s high environmental standards.

But this latest case adds to the absurdity of the EU’s green agenda, as it seems that even the oldest lithium producers in Europe cannot continue to process lithium chloride, despite it. mined elsewhere.

The Greeniacs want us to give up fossil fuels, but don’t want the alternatives produced in their backyard!

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