The Asian manufacturer BYD, one of the world leaders in the production and commercialization of electric vehicles on a global scale, took another key step in its expansion strategy in Latin America.
According to the portal Reporte Minero, the company sent a specialized team to carry out lithium processing work.
The project seeks to build a lithium cathode factory in the north of Chile, with an investment of 290 million dollars.
This strategic decision seeks to take advantage of the country’s abundant lithium reserves and establish direct access to the resources needed for battery production.
Incentives
The start of the program comes after BYD obtained preferential access to lithium carbonate prices in Chile in April of this year.
The Chilean government recognized the Asian brand’s plant construction plans and granted this special status, allowing the company to secure a stable and competitively priced supply of this key component in the manufacture of lithium cathodes.
Stella Li, BYD‘s Executive Vice President, highlighted the company’s willingness to collaborate with the Chilean authorities and offer its technology.
This cooperative approach is particularly relevant as the Chilean government is implementing a new lithium extraction model that will give the state a stake in new projects.
In addition, the government is encouraging downstream investments in the lithium production chain, which creates opportunities for companies like BYD to collaborate.
BYD’s plant is expected to start producing iron phosphate and cathode lithium by the end of 2025.
Booming Market
According to figures from the Chilean National Automotive Association (ANAC), a total of 601 100% electrified cars were sold between January and May, implying a 35.7% jump compared to the same period in 2022.
In May, the commercialization of zero or low emission cars registered a 22.9% decrease and 585 vehicles registered with this type of motorization.
Related content: Santiago de Chile to be the Latin American Capital of Sustainable Mobility
Chile Welcomes Latam Mobility
As one of the key players in the region in building the largest sustainable community in Latin America, Latam Mobility arrives in Chile on August 27 and 28 as part of the Mobility and Sustainability Tour 2023.
The meeting will bring together leading personalities from the public sector and private companies, with the aim of offering their perspectives and a snapshot of the current landscape of sustainable mobility in Latin America.
For participation information, please contact info@investinlatam.org
