Chile, home to the world’s largest lithium reserves, said that Japanese battery and metal companies are among Asian investors interested in obtaining a long-term preferential status to lithium, in exchange for adding value to raw materials and transferring skills.
Chile, occupying an important position in the world of mining, seeks to attract companies that can help it develop its processing and manufacturing capabilities. In April, the electric car maker was grantedchinese ” BYD “(BYD) the possibility of taking advantage of preferential prices for lithium carbonate produced by” cqm “(SQM), the second largest producer of this metal in the world, for use at a” cathode ” plant to be built in the north of the country.
The purchase of additional lithium-from the mine “Albemarle” (Albemarle) in Chile-will be available over the next year for similar deals. While the contract for the production of”cqm” will expire in 2030, the contract for “Albemarle” will last until 2043, which provides more certainty for bidders to obtain preferential prices and indicates a more competitive process, said Chilean economy minister Nicolas Grau.
“Battery manufacturers want to play a role in lithium extraction, in order to make sure supplies are plentiful,” Grau said during an interview in Tokyo, where he is leading a promotional campaign that will also take place in South Korea, before heading to China with President Gabriel boric. “This method is much simpler,”he added. Companies do not have to wait three years or five years to secure their supply of metal.
After meetings with the company “Sumitomo” (Sumitomo),”Mitsui & Co” (Mitsui & Co) and”Sojitz” (Sojitz), along with other companies involved in the supply chains of batteries and electric vehicles, Grau noted how interested Japanese companies are in investing.
The largest battery manufacturers and automakers in Japan are investing heavily in the development of next-generation batteries as they compete with Elon Musk’s Tesla and BYD-both companies are considered pioneers of the global automotive industry’s shift towards zero-emission electric vehicles.
The company “Panasonic” (Panasonic) said that it is making progress in the creation of the first supply chain of lithium-ion batteries in Canada for electric vehicles made in North America. Japanese and Canadian officials met last week in Ottawa to sign an agreement on electric vehicle supply chains.
