2024-01-20 05:59:28
It has been reported that Korean battery companies are considering establishing a lithium processing plant in Chile, the world’s largest lithium reserve country.
Bloomberg News reported on the 19th local time that several Korean battery companies have expressed interest in building a lithium plant in Chile.
In relation to this, InvestChile, Chile’s foreign investment attraction agency, interviewed representatives of Korean companies.
According to the report, Carla Flores, managing director of InvestChile, said that Korean companies were interested in processing Chile’s vast semi-processed lithium into materials such as iron phosphate for rechargeable batteries and supplying it to the U.S. market.
He said that Korea “has the potential to export lithium cathode materials to the United States” through these projects.
It has been reported that companies interested in establishing a factory include POSCO Holdings, SK On, and LG Chem.
According to Bloomberg, POSCO Holdings and LG Chem are considering various investments in various regions, including Chile, and SK On is keeping a close eye on Chile.
Lithium is a key mineral used in batteries for electric vehicles, mobile phones, laptops, etc., and Chile’s lithium reserves are the world’s largest at 9.3 million tons.
Chile is also called the ‘Lithium Triangle’ along with Argentina and Bolivia, and 60% of the world’s lithium is known to be stored in these three countries.
In a situation where competition to secure lithium is fierce, if Korean companies build a lithium processing plant in Chile, they will not only have continuous business opportunities in the center of lithium production, but can also expect the effect of reducing dependence on China.
The Chilean government allowed a Chinese cathode material company that built a factory in northern Chile last year to receive lithium carbonate produced by SQM, the world’s second largest lithium producer, at a preferential price.
Lithium processed in Chile by Korean companies is expected to also receive subsidies related to the U.S. Inflation Reduction Act (IRA).
To be eligible for IRA subsidies, more than 40% of core minerals must be mined and processed in the United States or a country that has entered into a free trade agreement (FTA) with the United States, and Chile is a country that has concluded an FTA with the United States.
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