China Tsingshan will invest US$ 250 million in lithium plant in Chile

The Chinese company Tsingshan will invest about US$250 million in Chili to develop value-added creation projects in lithiumwith the installation of a plant to produce phosphate iron and lithium (LFP) used in batteries electric vehicles.

The investment, announced by Chilean President Gabriel Boric from Beijing where he is visiting, corresponds to the proposal of the Chinese company Yongqing Technology that was selected by the state development agency Corfo to promote value-added initiatives.

“The tremendous and powerful investment (…) of more than US$ 250 million will bring hundreds of jobs in the north of our country, particularly in Mejillones,” in the north of the country, Boric said in a short video posted on social networks.

“And most importantly, in terms of lithium here we are not going to limit ourselves only to the extraction of non-metallic minerals, but we are also going to create value chains and transfer knowledge”he added.

A statement from Corfo specified that the investment will be for US$ 233 million and will be developed starting in 2025 in the northern region of Antofagasta, in the mining epicenter of the country, and could consider more resources as a result of the installation of infrastructure.

Tsingshan said he could consider more investments in Chile.

“Chile is the country in the world with the most reserves and exports of lithium resources. “If the government provides great support, we can consider building a lithium battery industrial park,” Tsingshan President Xiang Guangda said in a meeting with Boric, according to a WeChat post from Tsingshan.

Last April, Boric launched a national lithium strategy with which the country seeks to increase state control in projects considered strategic, through the creation of public-private associations with a state majority.

The state-owned Codelco, the largest global copper producer, is the company in charge of leading the strategy and is currently negotiating with SQM, the world’s second largest lithium producer, one of the two current operators in Chile, whose lithium property lease contract with Corfo expires in 2030.

For its part, Corfo announced on Monday on its website that after a process of “Several months” assigned the status of specialized lithium producer to Yongqing Technology with the proposal “Phase 1: Antofagasta Global Green Lithium Eco Industrial Park. “Lithium ferrous phosphate (LFP) cathode material plant.”

The note said that Yongqing Technology will access 11,244 tons per year of battery-grade lithium carbonate (Li2CO3) at a preferential price until 2030, thereby taking half of the lithium quota that was available under the contract between Corfo and SQM.

The project contemplates producing in Chile 120,000 metric tons per year of cathode material of the LFP type (LiFePO4), which includes the volume assigned through this call from Corfo and the import of lithium carbonate from the Tsingshan project, in association with the French company Eramet, in the Salar Centenario Ratones in Salta, Argentina.

Five years ago, in a first auction for companies interested in developing value-added lithium products, the three winners – including China’s Fulin, giant Samsung SDI and Korean steelmaker Posco – subsequently withdrew from their plans. Over time, Chile opened a new call.

Source: Reuters