The European Union (EU) is negotiating a private-sector consortium that would provide electric buses to Latin American nations, granting EU firms access to the region’s rich lithium reserves, writes Bloomberg Linea in its latest report.
The plan forms part of the EU’s Global Gateway plan, a €300 (US$330) billion initiative to foster smart, clean, and secure connections across digital, energy, and transport sectors.
The deal aims to shift the bloc’s reliance on China for lithium, promote sustainable transport, and reduce carbon emissions in Latin American countries.
However, the proposal is still in discussion stages, considering how European companies could benefit from the consortium.
With the EU’s green targets hinging on mineral resources such as lithium, whose demand is predicted to skyrocket by 2030 and 2050, fast action is critical.
Bernd Schäfer, CEO of EIT RawMaterials, says, “This is a decisive moment.”
The EU has recently entered a similar agreement with Argentina and expects to conclude one with Chile soon.
These countries possess some of the world’s most significant lithium reserves.
Given the potential demand for approximately 10,000 electric buses in Latin America in the coming years, the project is anticipated to garner interest from European automakers.
However, actualizing the deal might take a few years.