China’s firms seek to avoid pitfalls in search of key EV metal in Latin America: analysts
Latin American countries, such as Chile, Bolivia, Mexico and Peru, are placing extra scrutiny on overseas investment in their lithium industries
Chinese firms, which needs the raw material to make batteries for the world’s largest electric vehicle (EV) market, are hitting resistance in some Latin American countries that hold the keys to the world’s reserves of the soft, silvery-white alkali metal.
The miners face environmental, protectionist and occasionally political barriers, analysts said, with some issues leading to legal problems and prolonged negotiations.
“China is currently the world’s largest lithium smelter, and the demand for lithium ore grows day by day,” said Aggie Hu, senior editor with the China commodity data analytics service Mysteel Global.
“At the same time, other countries are basically reviewing their own national industrial development needs and are gradually paying more attention to lithium resources.”
Among the higher-profile cases, Chilean officials and the state-run Sociedad Química y Minera de Chile (SQM) chemical company have been haggling with Chinese EV giant BYD since 2022 over discounts on chemicals at a BYD lithium project in the country.
The Chilean government wants to move up the value chain, and BYD’s project in Chile accomplishes this
