financetom
Business
financetom
/
Business
/
Chile to seek bidders for preferential pricing on lithium by July
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Chile to seek bidders for preferential pricing on lithium by July
May 16, 2024 11:49 AM

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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Apple readies iPhone SE, iPad Air upgrades for early next year, Bloomberg News reports
Apple readies iPhone SE, iPad Air upgrades for early next year, Bloomberg News reports
Oct 2, 2024
Oct 1 (Reuters) - Apple ( AAPL ) is close to starting production of an updated iPhone SE that will serve as a new low-end model and is also aiming to manufacture new iPad Air models, Bloomberg News reported on Tuesday, citing people familiar with the matter. The refreshed Apple ( AAPL ) products are expected to be released early...
Service Corp International Appoints John Faulk as COO
Service Corp International Appoints John Faulk as COO
Oct 2, 2024
04:34 PM EDT, 10/01/2024 (MT Newswires) -- Service Corp International ( SCI ) said Tuesday it promoted John Faulk to chief operating officer. Faulk was serving as senior vice president for revenue and business expansion, according to the company. Faulk succeeds Sumner Waring, who will become president of the company, Service Corp ( SCI ) said. ...
What Happened With Rivian Stock Today?
What Happened With Rivian Stock Today?
Oct 2, 2024
Rivian Automotive, Inc. ( RIVN ) shares fell nearly 7% Tuesday while port workers striked and conflict escalated in the Middle East.  The Details: Port workers represented by the International Longshoremen’s Association (ILA) walked off the job Tuesday after the labor contract between the ILA and U.S. Maritime Alliance expired overnight. A prolonged strike could affect many industries and the...
Reuters introduces digital subscriptions for $1 a week
Reuters introduces digital subscriptions for $1 a week
Oct 2, 2024
(Reuters) - Reuters News announced on Tuesday that it would roll out digital subscriptions starting this month, joining a crowded market of news organizations that charge for online content. The Thomson Reuters ( TRI )-owned news agency said visitors will have to pay $1 per week for access to its website, which has been available for free but requires users...
Copyright 2023-2026 - www.financetom.com All Rights Reserved