Chinese electric car manufacturer BYD Co. is making significant strides in establishing a lithium processing project in Chile, a country known for its vast lithium reserves.
As part of its plans to construct a lithium cathode factory, BYD will invest US$290 million and deploy an engineering team to initiate the project.
This move will provide strategic access to the abundant lithium resources in South America, complementing BYD’s existing processing operations in China.
In April, BYD secured preferential pricing for lithium carbonate in Chile, a privilege granted by the Chilean government in support of the upcoming factory.
The facility is set to commence production of iron phosphate and cathode lithium by the end of 2025.
To determine the ideal location for the factory, BYD will conduct a feasibility study with its engineering team.
As the demand for electric vehicles and rechargeable batteries continues to rise, manufacturers like BYD face challenges securing sufficient raw materials.
To address this concern, they are increasingly involved in financing extraction and processing projects worldwide to ensure future supplies.
BYD aims to enhance its supply chain for electric vehicle batteries by investing in Chile.
BYD’s project in Chile aligns with the country’s new lithium extraction model, which includes the state’s involvement in new projects.
Concurrently, the Chilean government is intensifying its efforts to attract downstream investments.
BYD is committed to collaborating with Chilean authorities, offering its technology to support its initiatives.
Thanks to its specialized lithium producer status, BYD will enjoy preferential prices for 11,244 metric tons of lithium carbonate annually until 2030 from SQM, the world’s second-largest lithium producer.