It poses a fresh challenge to electric vehicle manufacturers scrambling to secure battery materials, as more countries look to protect their natural resources. Mexico nationalized its lithium deposits last year, and Indonesia banned exports of nickel ore, a key battery material, in 2020.
The government would not terminate current contracts, but hoped companies would be open to state participation before they expire, he said, without naming Albemarle and SQM, the world's No.1 and No.2 lithium producers respectively.SQM, formally called Sociedad Quimica Y Minera de Chile, and Albemarle supplyAlbemarle said the announcement would have "no material impact on our business" and it would continue talks on investing in further growth and using new technologies in Chile.
"When or if battery makers renew their contracts with lithium firms in Chile, contract conditions would likely become more difficult than what they saw in the past when there was no state involvement," said Cho Hyunryul, an analyst at Samsung Securities. Congress has been a check on many of Boric's more ambitious proposals and shelved a proposed tax reform bill in early March.
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