Categories:
Energy
/
General Market Commentary
Topics:
General Energy
/
General Market Commentary
Chile open to increasing SQM lithium quota to satisfy Tesla: Corfo
Chile is open to negotiating an additional quota of lithium for local miner SQM to meet potential demand from U.S. electric car-maker Tesla, Eduardo Bitran, head of Chilean development agency Corfo, told Reuters on Monday.
Bitran said Tesla and SQM were “exploring” opportunities after Tesla expressed interest in buying “important volumes” of lithium hydroxide, a key ingredient in the batteries used in electric vehicles, from SQM.
Tesla declined comment. SQM did not immediately respond to request for comment.
The talks between SQM, one of the world’s top lithium producers, and Tesla, a leading electric-vehicle manufacturer, follow an agreement struck earlier this month between the miner and the Chilean government that will allow the company to increase its quota in the Salar de Atacama, one of the world’s richest lithium deposits.
The agreement between the government and SQM, which ended a multi-year spat over royalty payments, also seeks to incentivize value-added production in Chile by requiring SQM to supply the country with 25 percent of its lithium output at a favorable price.
Bitran said he had met recently with Tesla in the United States to discuss potential investments by the automaker in Chile.