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Tsingshan told Reuters it has withdrawn plans for a $233 million project to produce 120,000 metric tons of lithium iron phosphate (LFP).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
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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
US accuses South Africa of harassing US officials working with Afrikaners
- The State Department alleged that Americans had also been briefly held in the raid, which it said the United States “condemns in the strongest terms.”
WASHINGTON: Washington on Thursday accused South Africa of harassing US government employees working with Afrikaners, the white minority to whom President Donald Trump is granting refugee status, in the latest escalation of tensions.
The State Department said that passport information of US officials was leaked and warned in a statement that “failure by the South African government to hold those responsible accountable will result in severe consequences.”
South Africa replied that the allegation was unsubstantiated and rejected “any suggestion of state involvement in such actions.”
The accusations came after South Africa arrested and expelled Wednesday seven Kenyans brought in by the US government to assist in processing Afrikaners seeking to move to the United States.
President Donald Trump’s administration has claimed Afrikaners are victims of discrimination and even “genocide,” which the Pretoria government strongly denies.
South Africa said the Kenyans arrested at a processing center on Tuesday were on tourist visas that did not allow them to work — the type of violation seized on by Trump as he carries out mass deportations from the United States.
The State Department alleged that Americans had also been briefly held in the raid, which it said the United States “condemns in the strongest terms.”
It added that officials’ passport information had been made public.
So-called doxxing, or revealing personal information, “is an unacceptable form of harassment” and puts people in harm’s way, the State Department said.
It did not immediately provide further details on the purported incident.
‘Seeking clarity’
South Africa “noted an unsubstantiated allegation regarding the private information” and was seeking clarity from Washington, the foreign ministry in Pretoria said later.
“We categorically reject any suggestion of state involvement in such actions,” it said in a statement.
The government has already said no US officials were arrested in Tuesday’s raid, which was not carried out at a diplomatic site.
The seven Kenyan nationals who were expelled had violated South African law by working without the correct permits, the foreign ministry repeated.
“The government will not negotiate its sovereignty and the implementation of the rule of law,” it said.
Trump has repeatedly attacked South Africa’s post-apartheid government over what he calls persecution of the Afrikaners, an allegation that had gained ground online with the far-right.
He has been increasingly open on his desire to rid the United States of immigrants other than white Europeans and all but ended the once-generous US refugee resettlement program, which now only accepts Afrikaners among all the world’s people.
The State Department in a separate statement Thursday confirmed it did not invite South Africa to an initial meeting on planning next year’s Group of 20 summit, the first time a member of the bloc is being excluded.
