CHILEAN President Gabriel Boric said on Monday (Oct 16) that Chinese Tsingshan Holding Group will make lithium-related investments worth US$233.2 million in Chile.

“The most important thing, is that we’re not limiting ourselves to just the extraction of lithium, but we’ll be creating value chains and transferring knowledge,” Boric said in a video posted on social media.

The government said the project aims to produce 120,000 metric tons of lithium iron phosphate (LFP), used to power electric vehicles. LFP is a lower-cost competitor to nickel cobalt manganese cells.

Yongqing Technology, which belongs to Tsingshan Holding, will have access to 11,244 tons of battery grade lithium carbonate from SQM at a preferential price until 2030. The plan will also import lithium carbonate from Tsingshan’s joint lithium project with Eramet in Argentina.

Chile’s government announced a plan to take state control over its lithium industry earlier this year. It’s currently negotiating state control over SQM, which has a lithium contract that expires in 2030.

The governments’s statement said the plant is expected to be operational in May of 2025 and will create 668 jobs when it reaches full capacity.

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The Chilean president flew last Thursday to China in a trip which seeks to strengthen relations between the two countries. Boric is set to return on the 18th after participating in several business forums. REUTERS