SANTIAGO, May 16 (Reuters) - Chile will open calls by
the end of July for lithium component producers to obtain
preferential pricing on lithium produced by Albemarle through
2043, government officials said on Thursday.
Albemarle and and SQM are the two
current lithium operators in Chile, and their contracts
stipulate that a part of their output will be awarded at
preferential prices to companies that keep investment in
Chile, the world's second largest lithium producer.
The strategy announced by President Gabriel Boric last year
is in part aimed at spurring local investment in technologies
using lithium, including batteries and battery components.
The head of Chile's economic development agency CORFO,
Jose Miguel Benavente, said a dozen companies from various
countries are interested in obtaining lithium through the
Albemarle offering, positioning Chile to take a bigger role in
the global supply chain of battery components, whether for
electric vehicles or other types of energy storage.
CORFO last year awarded preferential pricing contracts for
lithium produced by SQM to Chinese electric-vehicle maker BYD
and China's Tsingshan Holding Group, both contingent
on plans from the companies to develop battery parts in Chile.
On Tuesday, BYD told Reuters it was postponing plans for a
2025 lithium cathode plant in Chile over "uncertainty," without
providing details.
Benavente told reporters that government officials were
helping BYD search for a site to build the plant, and said that
the EV maker has the option to negotiate directly with SQM over
pricing.
He said BYD has so far fulfilled its obligations to
access the SQM preferential pricing, but must begin production
in 2025 to maintain the contract.
Chile initially had a bidding process for preferential
prices on Albemarle production in 2018 with three companies, but
the deal fell through following problems with supply and prices.
The new process follows the resolution of a four-year
dispute between CORFO and Albemarle, in which Chile gave
Albemarle the ability to increase its lithium production by
nearly 50%, contingent on developing new technology aimed at
more environmentally friendly extraction.