Chinese metals giant Tsingshan insists it remains committed to Chile’s lithium sector, despite scrapping plans for a lithium cathode plant—a setback for the country’s ambitions to move up the EV battery supply chain.
Key Developments:
- Project Retreat: Tsingshan and BYD reportedly abandoned major cathode plant plans, per Chile’s Corfo agency, dealing a blow to local lithium processing goals.
- Mixed Signals: Tsingshan’s statement Friday claimed it still seeks downstream lithium opportunities in Chile but referred to the cathode plant in the past tense.
- Diplomatic Spin: China’s embassy emphasized continued “dialogue” with Chile, calling the firms’ commitment unchanged despite Corfo’s confirmation of their exit.
Why It Matters:
- Chile’s Lithium Dream: The world’s No. 2 lithium producer aims to boost local refining but faces hurdles attracting investment.
- China’s Strategy: Tsingshan’s pivot suggests reassessing Chile’s business climate amid global lithium price swings and policy uncertainty.
- EV Market Ripple: Fewer cathode plants could prolong Chile’s role as a raw material exporter, ceding value-added production to China.
China’s Tsingshan Denies Full Exit From Chile Lithium Plans Despite Cathode Plant Pullback