Chile, known for its vast lithium reserves, is becoming a hub for international battery manufacturers.
These manufacturers, particularly those from South Korea, are interested in developing processing facilities in Chile.
They aim to transform semi-processed lithium into materials for rechargeable batteries, with a focus on supplying the U.S. market.
InvestChile, the agency promoting foreign investment in Chile, has engaged in talks with several South Korean companies.
Karla Flores, the agency’s director, highlights the potential for these projects to export lithium cathodes to the United States.
This initiative aligns with Chile’s objective to move up the value chain by utilizing its significant lithium resources.
Chile has also engaged with Chinese companies, providing them access to lithium carbonate from SQM, a major lithium producer, for a cathode factory in northern Chile.
Additionally, Japanese companies are exploring investment opportunities in Chile’s lithium sector.
In contrast to Chinese-managed projects, the lithium processed by South Korean firms in Chile could qualify for U.S. incentives.
Lithium Partnerships and Global Interest
These incentives are part of efforts to diversify the clean energy supply chain, leveraging Chile’s free trade agreement with the U.S.
Key players in the global battery supply chain, such as Tianqi Lithium Corp., LG Energy Solution Ltd., and French mining company Eramet, have also shown interest.
They have met with Chilean authorities to discuss the government’s public-private partnership model for lithium operations.
President Gabriel Boric’s new policy involves the state holding a majority stake in key lithium operations while allowing private companies to control projects in non-strategic areas.
Codelco and Enami, state-owned firms, represent Chile’s commitment to investing in the battery value chain amid growing electric vehicle battery demand.
The involvement of global companies like LG and Tianqi in Chile’s lithium sector underscores the worldwide interest in securing lithium resources.
These resources are essential for the burgeoning electric vehicle market. Chile’s partnerships in the lithium industry boost its global standing in the clean energy landscape.
In conclusion, this partnership aligns global interests with national resources to drive growth and innovation in clean energy.