Chile’s new lithium framework looks positive for SQM, says Morgan Stanley

Morgan Stanley analyst Javier Martinez De Olcoz notes that Chile has unveiled the basic pillars of the new regulatory framework for lithium, which is broadly in line with the firm’s expectations. The firm thinks the framework is positive for SQM (SQM), but adds that "the details matter" and notes that the creation of that public lithium company needs regulatory approval by the parliament, expected in the second half, and that in the meantime, both Codelco and Enami public companies can open negotiations with private players regarding new lithium mining projects. Regarding both SQM and Albemarle (ALB), the government will comply with historical signed contracts, meaning that any change before the renewal due date will need to be negotiate and agreed by the parties, adds the firm, which has Underweight ratings on both SQM and Albemarle.