BYD invests $290 million in lithium mining and strengthens position in electric vehicle market

In addition to the billionaire investment made in Bahia, the Chinese giant is now looking to invest in the oil of the future, lithium

BYD, the Chinese electric car giant, is expanding operations into Chile as part of an ambitious lithium mining project. The South American country is home to the largest reserves world of this essential metal for the manufacture of batteries for electric vehicles, making it a strategic point for the company. BYD plans to invest US$290 million in a lithium cathode plant in northern Chile, targeting direct access to the region's valuable lithium reserves.

BYD is already the world's second-largest battery manufacturer and expansion into Chile strengthens its position in the electric vehicle market. The Chinese company gained access to preferential prices for lithium carbonate in the South American country, thanks to the special status granted by the Chilean government due to plans to build the plant. The factory is expected to start producing lithium iron phosphate for cathodes by the end of 2025.

“Now, we are sending the engineering team to carry out the feasibility study and select the site,” said Stella Li, executive vice president of BYD. The demand for clean energy is driving the electric vehicle and rechargeable battery industry, however, these industries face challenges related to the scarcity of raw materials. To secure future supply, many manufacturers are investing in mining and processing projects, as is the case with BYD.

Contracts in Chile

In Chile, BYD is finalizing contracts for its project at a time when the government is adopting a new lithium extraction model, which gives the state a stake in new ventures. Furthermore, the Chilean government is intensifying its efforts to encourage investments in the downstream sector. BYD is willing to collaborate with Chilean authorities, including offering its technology to the government.

Thanks to the status of specialized producer of lithium granted, BYD will have access to preferential prices for 11.244 metric tons per year of lithium carbonate for batteries until 2030, supplied by the Chilean company SQM, the world's second largest producer of lithium.
With the expansion of its operations to Chile and the construction of a new factory in Bahia, BYD consolidates its position as one of the leading companies in the electric vehicle sector. In addition, it contributes to the development of the clean energy industry in both Brazil and Chile, driving the transition to a more sustainable future.

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