Chile, Ranked No.1 in Reserves, Announces Nationalization of Lithium Industry

The South American government of Chile announced that it will nationalize the lithium-related industry, a key mineral used in electric vehicle batteries.

[Image source=AP Yonhap News]

According to major foreign media on the 20th, Chilean President Gabriel Boric stated in a broadcast speech that to develop the national economy and protect the environment, the country will nationalize its lithium industry, which ranks first in the world in terms of reserves.

He said the government will not terminate existing contracts with lithium companies Albemarle and SQM, but hopes that domestic companies will approach the nationalization openly.

He added that Codelco, Chile's state-owned company and the world's largest copper producer, will seek the best plan for the state-owned lithium company and aims to obtain parliamentary approval in the second half of this year.

Meanwhile, Albemarle and SQM supply lithium to electric vehicle and battery companies including LG Energy Solution and Tesla.