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Chilean conglomerate CAP, which has invested $80 million in the company's Penco project, will become a new shareholder.
BYD Co. said the timing of its lithium project in Chile remains up in the air as the Chinese electric vehicle juggernaut continues to negotiate with authorities in the South American nation.
In April last year, BYD was granted access to preferential prices for lithium carbonate produced by Chile’s SQM to feed a plant that would start making lithium iron phosphate for cathodes by the end of 2025.
But terms are yet to be settled and the start of production is expected to be delayed, BYD executive vice president Stella Li said in an interview on Monday in Shenzhen, adding that the company has to make sure it gets a “good deal.”
“We are still negotiating with the local government,” Li said. “The ball is now in the government’s court.”
Corfo, the Chilean government agency that oversees lithium holdings, declined to comment.
For the Chinese automaker, the cathode project offers a foothold in a country with the world’s biggest reserves of lithium. For Chile, the project is a part of a push to move further down the battery supply chain. But lithium prices have slumped to three-year lows after new production came on stream just as global demand for electric cars slowed.
It’s unclear if BYD would be assured of preferential prices beyond SQM’s current license that expires in 2030. The Santiago-based firm known formally as Sociedad Química y Minera de Chile SA has signed a deal to hand over a majority stake in its brine assets to state-owned Codelco in exchange for extending operations.
Read More: BYD postpones plans for 2025 Chile lithium cathode plant
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