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General Energy
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General Market Commentary
Chile's SQM seeks approval for $450 million lithium plant expansion
SANTIAGO (Reuters) - Chilean miner SQM on Wednesday began the process of seeking government approval for a $450 million expansion of its lithium carbonate plant, which could more than double its production as demand rises for the key element in the manufacturing of batteries.
SQM said in an environmental impact statement that the upgrade planned for its Salar del Carmen facility would increase production of lithium carbonate to 180,000 tons a year from 70,000 tonnes through two phases with the goal of being operational in 2020. Global manufacturers of batteries and electric cars are looking to secure their supplies against the increasing value of lithium.
“In the first operational phase, production will be increased to 110,000 tonnes a year by increasing the current operating capacity of our equipment and processes,” said the miner.
The company said the second phase of expansion - called Lithium Carbonate Plant 3 - would see new equipment installed and existing equipment modified to increase production.