INSUBCONTINENT EXCLUSIVE:
lithium processing projects in Chile.Both companies had planned to invest a combined $523 million in new plants, aiming to produce lithium
iron phosphate (LFP) cathodes and batteries essential for electric vehicles.These projects, announced with high expectations in 2023,
producer, selected BYD and Tsingshan for preferential lithium pricing deals to encourage local investment
subsidiary Yongqing Technology, pledged $233 million for a battery plant in Mejillones, targeting 120,000 metric tons of LFP annually
(Photo Internet reproduction)Lithium carbonate prices, which peaked near $81,000 per ton in late 2022, fell below $10,000 by early 2025
Bureaucratic delays also played a role
BYD cited slow progress in securing land for its plant, despite several options provided by Chilean authorities.In January 2025, BYD filed
an official withdrawal notice
Chile publicly denied that the companies had fully abandoned their plans, stating both remained open to further talks
National Lithium Strategy, launched in 2023, aims to foster public-private partnerships and local value addition in lithium production
The retreat of BYD and Tsingshan marks a setback for this goal.Nonetheless, Chile remains committed to attracting new investment and
developing its lithium sector, even as global market volatility continues to shape business decisions.All figures and facts in this article
are based on official Chilean government statements, company disclosures, and public records
The information is current as of May 2025.
