SMM: Educardo Bitlan (Eduardo Bitran), director of Corfo, the Chilean government's development agency, said in an interview on Monday that Chile was willing to negotiate an increase in the lithium quota for SQM, a local mining company. The increase in quotas is mainly due to the fact that Tesla, an electric carmaker, needs a lot of lithium.
SQM is one of the world's largest producers of lithium, while Tesla is the world's leading electric carmaker. Earlier this month, SQM signed an agreement with the Chilean government to approve an increase in the company's quota for (Salar de Atacama) in the Atacama salt marsh. The Atacama salt marsh is one of the most lithium-rich areas in the world.
The Chilean government and SQM have been arguing over royalties for years. the agreement could also help Chile develop high value-added industries, as SQM must sell 25 per cent of lithium to the country at a preferential price.
Bitlan said he recently negotiated with Tesla in the United States to explore the possibility of Tesla investing in Chile. During the negotiations, Bitlan proposed to Tesla that SQM provide Tesla with brine (brine), to allow Tesla to refine lithium hydroxide in Chile. Brine is a raw material that can extract lithium. "We said at the time that we were willing to increase quotas and clear the way for cooperation," Bitlan added.
Bitlan has previously revealed that Chile will receive up to $7.5 billion in royalties by 2030 as a result of a new contract with SQM.
Earlier, according to the foreign media FT reported, a few days ago Chilean development agency Corfo executive vice president Eduardo Bitran said Tesla and Chile SQM on lithium power supply negotiations.
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