South Korean Battery Manufacturers Eye Chile for Lithium Processing Plants

Lithium-rich Chile has caught the attention of South Korean battery manufacturers who are eager to establish processing plants in the country, according to the executive director of InvestChile, Karla Flores. The government agency has engaged in discussions with various Korean companies interested in assisting Chile in converting its vast reserves of semi-processed lithium into materials like iron phosphate, which are essential for rechargeable batteries. The primary motive behind this interest is to supply the US market. Flores suggested that one possibility is for Korean projects in Chile to export lithium cathodes to the US. This move comes as Chile seeks to capitalize on its significant lithium resources and expand its foothold in the value chain. Moreover, Asian companies have been actively seeking partnership opportunities in Chile’s lithium sector. Chile granted Chinese firms access to preferential prices for lithium carbonate produced by SQM, the world’s second-largest lithium producer, to be utilized in a cathode factory in northern Chile. Additionally, Japanese companies have expressed interest in making investments in Chile’s lithium industry. Notably, unlike Chinese-operated projects, lithium processed by Korean firms in Chile may qualify for US incentives aimed at diversifying the clean energy supply chain, benefiting from the US-Chile free-trade agreement. By meeting such requirements, Chile endeavors to solidify its position as a major lithium exporter while simultaneously fostering mutually beneficial collaborations with global battery manufacturers.