The element Lithium has applications deeply rooted in the history of technology. Since its inauguration as a rechargeable cell in the late 1970s, Lithium ion batteries, abbreviated as Li-ion cells, have become an integral part of the industry dealings involving portable electronics to electrified automobiles. With its dominance over the rechargeable battery market due to its significant growth with every passing year, this technology has the potential to shape the electronics industry globally. Despite its title as one of the most widely used rechargeable battery types, its predominant commercialization was severely inhibited due to technical flaws.
The lightweight, efficiently rechargeable, and powerful battery we use today is a product of the award-worthy development by M. Stanley Whittingham, Akira Yoshino, and John B. Goodenough. Companies around the globe scrambled to attain dominance over the Lithium ion resource. The China-based Tsingshan’s investment in Chilean lithium reserves is a decision to align themselves with the global sustainable development goals and gain strategic benefits.
Sociedad Química y Minera de Chile, abbreviated as SQM, is a Chile-based global manufacturer and developer of a diverse range of industry essentials and products beneficial for human progress. The deal with industries involving Healthcare, food and nutrition, green energy and technical solutions through innovative development of the technological sector. It holds the position of the global leader in markets involving iodine, potassium nitrate, thermo-solar salts, and lithium by producing high-quality products that meet the requirements and changing dynamics of its customers globally.
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China’s Tsingshan Holding Group showed intention to invest $233.2 million in SQM to build a plant that would produce lithium iron phosphate (LFP). LFP is the critical component of lithium-based batteries powering electric vehicles. According to Corfo, a Chilean economic development agency, the investing company will gain undisrupted authority over battery-grade lithium carbonate extracts of over 11,244 tons. The Chilean lithium miner has the advantage of a preferential price until 2030. The partnership will also monopolize the compound lithium carbonate from the lithium project, a collaboration between Tsingshan and Argentinian Eramet.
Gabriel Boric, the President of Chile, said in an interview on Monday, “The most important thing is that we’re not limiting ourselves to just the extraction of lithium, but we’ll be creating value chains and transferring knowledge” With a potential to generate 668 jobs at it’s total capacity, the Nothern plant in Chile is expected to be completely operational by May 2025. Chile, the home to the biggest lithium reserve globally, is enthusiastic about the future of the partnership.
Another social media post by the Chilean president on a visit to China shared the government’s plans. It said that the collaboration aspires to generate about 120,000 metric tons of LFP. This will be at a lower price compared to its competitors: nickel, Cobalt, and manganese cells. Xiang Guangda, Tsingshan’s chairman, said in a meeting with Boric, “Chile is the world’s largest country of lithium resources reserves and export. If the government gives great support, (we) can consider building a lithium battery industry park.”
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