Tsinghan Group to Invest in Chile's Lithium Facilities

Chilean President Gabriel Boric announced on October 16 that the Chinese Tsingshan Holding Group will spend $233.2 million in lithium-related projects in Chile.

"The most important thing is that we're not just limiting ourselves to lithium extraction, but we'll be creating value chains and transferring knowledge," Boric said in a social media video.

According to the government, the project's goal is to create 120,000 metric tonnes of lithium iron phosphate (LFP), which is used to power electric vehicles. LFP is a less expensive alternative to nickel cobalt manganese cells.

Tsingshan Holding's Yongqing Technology would receive preferential access to 11,244 tonnes of battery quality lithium carbonate from SQM until 2030. In addition, lithium carbonate from Tsingshan's joint lithium project will be imported.

Chile's government announced a plan to take state control over its lithium industry earlier this year. It's currently negotiating state control over SQM, which has a lithium contract that expires in 2030.

The governments's statement said the plant is expected to be operational in May of 2025 and will create 668 jobs when it reaches full capacity.

The Chilean president flew last Thursday to China in a trip which seeks to strengthen relations between the two countries. Boric is set to return on the 18th after participating in several business forums.