"Some argue Chile’s latest move opens the door to Chinese groups. Jimenez said that “the only ones who cannot get ripped off are state-owned Chinese companies” because they were primarily seeking resources, with profit a secondary concern.
Days after the plans were announced, Chile said China’s BYD planned to build a $290mn battery materials plant in the north.
With alternative supply set to flourish in Australia, Canada, the US and Argentina, and uncertainty over the longevity of lithium’s boom as work proceeds on alternatives like sodium-ion batteries, the west’s need for Chile’s supplies is not assured. But the metal is expected to be scarce for at least a decade because of the speed of the electric car transition — and the west is playing catch-up.“In the near future, the west doesn’t have much of a choice,” said Patricia Vasquez, a lithium specialist at the Wilson Center, a think-tank. “Latin America produces the only lithium that has been refined already outside of China. That’s a big advantage today.”
LPI Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
