Chilean legislators has rejected a bill allowing the
expropriation of private companies involved in lithium mining in the country,
which would have left the door open for the state to take over firms such as Albemarle
and SQM, the world’s No. 1 and second largest producers of the battery metal.
The special committee of the lower house said the bill was unconstitutional,
but tied when it came to vote in favour of naming lithium a resource of national
interest. The metal, a key ingredient in the batteries that power electric vehicles
(EVS) already has a special status as it’s considered to be property of the
“Declaring the Special Contracts of Lithium Operation (CEOL) deals of national interest is what was declared unconstitutional,” the minister of mining, Baldo Prokurica, told BioBio.cl.
“The only special lithium operation contract Corfo has is one with Codelco. Sometimes it is confused with the contracts that Corfo has with SQM or Albemarle, which are lease contracts,” he noted.
Since assuming in 2018 as Chile’s President, Sebastian Piñera
has vowed to ensure a combination of both state and private investment to
double the country’s output to 230,000 tonnes of lithium carbonate equivalent
per year by 2023.
Chile produced 96,053 tonnes of lithium last year. Demand from
EVs and energy storage systems is expected to triple by 2025, which many take as
a sure sign of better process.
Most analysts, however, remain unconvinced. Commodity research group (CRU) said this month it expected lithium prices to remain in the single digits for longer than expected, as “hype” has met “reality”.