2023-04-22 08:57:24
The Boric administration of Chile, South America, intends to acquire a majority interest in the production of lithium, the main raw material for electric vehicle (EV) batteries, through a partnership (joint investment) contract with a private company. clarified.
After Chile, the world’s second-largest supplier, reportedly plans to nationalize its lithium industry, the world’s largest producer of lithium raw materials, the U.S.Albemarle shares 10%, Chilean peersSQM also plunged 14.7% each to close.
The Chilean government will honor existing agreements with these two companies, but will move to a state-owned model when contracts expire in 2030 and 2043. We also assume that the company may choose to transfer the interest without waiting for the contract to expire.
Evaporation ponds in the Atacama salt flats, Chile
Source: Bloomberg
The new framework is also aimed at attracting more private capital as Chile’s leftist government, led by President Boric, seeks to expand the government’s role in producing lithium, which is crucial in the clean energy transition.
news-rsf-original-reference paywall">Original title:Chile Shifts to State Model in Hunt for More Lithium Riches (1)(excerpt)
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