Rockwood’s Lithium Is Core, For Now

Speaking at an investor day in New York City last week, Seifi Ghasemi, CEO of Rockwood Holdings, said the firm might consider spinning off its lithium-based chemicals business in four to five years. Demand for lithium chemicals is expected to skyrocket with the production of electric cars powered by lithium-ion batteries. Ghasemi noted that “pure play” businesses are often more highly valued by investors than are conglomerates such as Rockwood. For now, though, the lithium business will remain a core part of Rockwood, he said, because it needs the R&D resources of a larger firm. Separately, Rockwood, lithium producer Sociedad Química y Minera de Chile, and Japanese trading firm Marubeni will fund the Lithium Innovation Center with Chile University, where it will be located.