SANTIAGO, July 9 (Reuters) - Chile will open calls in a

month for lithium component producers to compete for

preferential pricing on lithium produced by Albemarle,

the head of Chile's CORFO economic development agency said on

Tuesday.

CORFO Executive Vice President Jose Miguel Benavente had

originally announced the call would begin in July but said on

Tuesday that they would now open calls in "one more month."

"We have a lot of interest from many companies," Benavente

said, adding the expansion of the production chain could lead to

manufacturing batteries within Chile. "That is precisely the

spirit behind this proposal."

In May, Chile gave Albemarle the ability to increase its

lithium production by nearly 50%, contingent on developing new

technology aimed at more environmentally friendly extraction.

Contracts for Chile's two current lithium operators,

U.S.-based Albemarle and Chile's SQM, stipulate that a

portion of the production will be awarded at preferential prices

to firms that develop value-added components.

In 2018, comparable agreements were in place, as Chile

initially allocated preferential pricing contracts for

Albemarle's production to three firms, which later backed out

due to supply and pricing agreement issues.

Last year, CORFO granted preferential pricing contracts to

Chinese electric vehicle maker BYD and China's Tsingshan Holding

Group. However, in May, BYD postponed the start date of their

lithium cathode plant, citing "uncertainty."

"What's going on now is the normal process of necessary

permits needed for those kind of plants," Benavente said, adding

that the BYD deal was moving along within the agreed-upon

timeline and parameters.

(Reporting by Fabián Andrés Cambero, writing by Noelle Harff;

Editing by Alexander Villegas and Sandra Maler