SANTIAGO: Chinese automaker BYD and metals group Tsingshan are backing out of multi-million dollar plans to build lithium cathode plants in Chile, the country’s economic development agency said on Wednesday.
The retreat by the two huge Chinese companies is a blow to Chile’s aim to develop more domestic processing of lithium, a key metal for electric vehicle batteries. Chile is the world’s no. 2 lithium producer.
Both projects were hit by plunging lithium prices, said government economic development agency Corfo, which in 2023 had tapped BYD and Tsingshan for a preferential lithium price deal as part of its efforts to spur investment in Chile.
“The companies selected by Corfo have been affected in their investment decisions by the global market conditions, which have shown a sharp drop in prices,” Corfo said in a statement.
Tsingshan told Reuters it has withdrawn plans for a $233 million project to produce 120,000 metric tons of lithium iron phosphate (LFP). Chile’s national assets ministry told Reuters that BYD filed an intent to withdraw its plans in January.
BYD, the world’s biggest maker of electric cars, declined to comment. BYD last year flagged delays to a planned $290 million plant, which was expected to produce 50,000 metric tons per year of LFP for cathodes.
Chilean newspaper Diario Financiero first reported the scrapped investments.
Chile’s effort in 2018 to encourage lithium-related investments via a pricing deal also fell apart. Chilean chemical company Molymet, China’s Sichuan Fulin Transportation Group Co. , and a joint venture between Korean firms Posco and Samsung for various reasons withdrew their plans.
Tsingshan and BYD would have had access to preferential prices of lithium produced by Chilean miner SQM through 2030, a timeframe that Corfo said also may have influenced the withdrawal of the projects.
In addition, Corfo said Tsingshan had wanted to assign the project development to a unit of the company that had not participated in the bidding process, which Corfo said was not possible.
Corfo last week opened a second bidding process for a similar scheme, this time to provide a purchasing deal with US lithium producer Albemarle through 2043 for companies that commit to lithium-related projects.
Albemarle and the selected investors will be able to use an “alternative form” to determine a price agreement, Corfo said.
China’s BYD, Tsingshan scrap plans for Chile lithium plants as prices plunge
https://arab.news/c466z
China’s BYD, Tsingshan scrap plans for Chile lithium plants as prices plunge
- Retreat a blow to Chile’s aim to develop more domestic processing of lithium
- Chile is the world’s no. 2 producer of the key metal for electric vehicle batteries
UN chief calls on Israel to reverse NGOs ban in Gaza
- In November, authorities in Gaza said more than 70,000 people had been killed there since the war broke out
- Israel on Thursday suspended 37 foreign humanitarian organizations from accessing the Gaza Strip after they had refused to share lists of their Palestinian employees with government officials
UNITED NATIONS, United States: UN Secretary General Antonio Guterres called on Friday for Israel to end a ban on humanitarian agencies that provided aid in Gaza, saying he was “deeply concerned” at the development.
Guterres “calls for this measure to be reversed, stressing that international non-governmental organizations are indispensable to life-saving humanitarian work and that the suspension risks undermining the fragile progress made during the ceasefire,” his spokesperson Stephane Dujarric said in a statement.
“This recent action will further exacerbate the humanitarian crisis facing Palestinians,” he added.
Israel on Thursday suspended 37 foreign humanitarian organizations from accessing the Gaza Strip after they had refused to share lists of their Palestinian employees with government officials.
The ban includes Doctors Without Borders (MSF), which has 1,200 staff members in the Palestinian territories — the majority of whom are in Gaza.
NGOs included in the ban have been ordered to cease their operations by March 1.
Several NGOS have said the requirements contravene international humanitarian law or endanger their independence.
Israel says the new regulation aims to prevent bodies it accuses of supporting terrorism from operating in the Palestinian territories.
On Thursday, 18 Israel-based left-wing NGOs denounced the decision to ban their international peers, saying “the new registration framework violates core humanitarian principles of independence and neutrality.”
A fragile ceasefire has been in place since October, following a deadly war waged by Israel in response to Hamas’s unprecedented October 7, 2023, attack on Israel.
In November, authorities in Gaza said more than 70,000 people had been killed there since the war broke out.
Nearly 80 percent of buildings in Gaza have been destroyed or damaged by the war, according to UN data, leaving infrastructure decimated.
About 1.5 million of Gaza’s more than two million residents have lost their homes, said Amjad Al-Shawa, director of the Palestinian NGO Network in Gaza.
