Chile’s president aims to nationalize world’s largest lithium supply
Chile’s president, Gabriel Boric, wants to create a plan to require state involvement in and control of any lithium contracts going forward, in the country with the world’s largest lithium supply.
Boric says that the plan will protect biodiversity and indigenous rights, and will help to distribute the gains from Chile’s mineral wealth more broadly among Chileans.
Chile is home to the world’s largest lithium reserves in its vast northern Atacama desert. The desert is known for its salt flats, large flat areas where water has evaporated and left concentrated solids on the land. Lithium can then be extracted from brine pools on these salt flats.
The desert also reaches into neighboring Bolivia and Argentina, and the area has been referred to as the “lithium triangle.” It is thought to hold roughly half of the world’s lithium reserves, though the resource is still reasonably common elsewhere.
Currently, the world’s largest lithium exporting country is Australia, with Chile in second place. But other countries including China, Argentina, Brazil, and even the US have significant lithium reserves and production capacity, and everyone is aiming to increase production in the coming years.
And some other countries have exerted control over their EV battery resources, with Mexico recently nationalizing its lithium deposits and Indonesia banning exports of nickel in hope of keeping that industry domestic.
Lithium prices have been volatile in recent years, with the resource shooting up about 400% in price in late 2021 due to supply chain challenges and extremely high electric car demand which supply was not able to keep up with.
But most expected prices to drop precipitously this year, and since the beginning of the year, they have. Prices are still high compared to historical averages but are dropping quickly and getting close to those averages.
And, despite being in the name of lithium-ion batteries, each electric car only needs about 20 lbs of lithium. At recent prices, this means there is a few hundred dollars worth of lithium in each EV battery.
Boric’s plan would affect the world’s largest two lithium suppliers, Albemarle and Sociedad Quimica y Minera de Chile (SQM), both of which operate in Chile. Albemarle is a multinational which was formed in 1992 as a spin-off of Ethyl Corporation, the company responsible for putting lead in gasoline. SQM was originally founded as a Chilean state-owned company in 1968 but is now owned by Chilean billionaire Julio Ponce Lerou, son-in-law of Chilean dictator Augusto Pinochet.
The companies dipped 21% and 10% in the stock market today after Boric’s plan was announced.
Chile would not instantly take control of these companies’ operations, but rather the plan would go into effect upon renewal of the companies’ contracts. Currently, SQM’s contract will expire in 2030, and Albemarle’s in 2043. Boric hoped that companies would be open to earlier participation by the state.
But so far, this plan has only been announced by Boric and will have to go through Chile’s National Congress first. He plans to present it to Congress later this year, though the body has blocked many of his proposals in the past.
Chilean politics is going through a lot of change right now. The country saw sustained protests starting in 2019 demanding a new constitution to replace the current one which was implemented under dictator Augusto Pinochet in 1980.
Then in 2021, Boric, a socialist who at 37 is one of the world’s youngest state leaders, won a wide victory over far-right opponent Jose Antonio Kast, who had previously served under Pinochet and whose grandfather had been in the Nazi army. So, the choice was stark.
With this mandate, Boric proposed a new constitution with many progressive reforms. One of those proposed reforms (article 27) would have been to nationalize mining operations, but it was rejected before the constitution went to a vote. Instead, it included a provision that miners must put aside resources to repair damage from mining activities.
The proposed constitution was supported by most Chileans at first, particularly young Chileans and those on the political left. But as the referendum for its approval came closer, polls turned against it and the proposed Constitution failed by a wide margin. The country is now drafting a second proposal, as most Chileans still want to replace the constitution of Pinochet.
But this would not be Chile’s first brush with the nationalization of the extractive industry. In the late 60s and early 70s, Chile pushed to nationalize several industries, particularly the extraction of copper (and even created an early “internet” to manage it).
Chilean president Salvador Allende, a socialist, won in 1970 with the promise of nationalizing copper outright without compensation to the various companies, largely US-based, currently operating in the sphere. The copper industry was nationalized soon after his election with modest compensation to these companies, which drew the ire of the U.S.
Then, in 1973, a U.S.-backed coup led to the deposal and death of democratically-elected Allende and his replacement with the new dictator Pinochet.
Boric’s announcement stops short of Allende’s, in that it does not aim to immediately nationalize the industry without compensation. It also stops short of the proposal in article 27, as that would have given the state exclusive mining rights across many resources, whereas Boric’s current proposal seeks to enforce public-private partnerships in lithium specifically.
But the Chilean state still owns the nation’s copper extraction industry via Codelco, which supplies 11% of the world’s copper. Boric would have this company take a role in finding the best way to manage any public-private partnerships for lithium extraction.
The US currently has a free trade agreement with Chile, in force since 2004. This is relevant for new battery critical mineral guidelines from the US, requiring that battery minerals be sourced from the US or free trade countries in order to qualify for tax credits from the Inflation Reduction Act.
FTC: We use income earning auto affiliate links. More.
Germany’s largest offshore wind farm under construction, EnBW’s He Dreiht, just hit a big milestone: The first enormous turbine is now up in the North Sea.
He Dreiht – which means “it spins” in Low German – is using Vestas’s massive 15 megawatt (MW) turbines, the first project in the world to install them. Just one spin of one of the rotors can generate enough electricity to power four households for an entire day.
When it’s finished, He Dreiht will have 64 mega turbines cranking out 960 megawatts (MW) of clean power – enough to supply around 1.1 million homes. And it’s being built without any government subsidies.
EnBW, one of Germany’s major energy companies, has been working in offshore wind for more than 15 years, but He Dreiht is their biggest project yet. “It will play a key role in helping us to significantly grow our renewable energy output from 6.6 GW to over 10 GW by 2030,” said Michael Class, who heads up EnBW’s generation portfolio development.
The project is a win for Vestas, too. “With the installation of the first V236-15.0 MW, we have reached an important milestone for both the He Dreiht project and our offshore ramp-up, which helps Germany build a more secure, affordable, and sustainable energy system,” said Nils de Baar, president of Vestas Northern & Central Europe.
He Dreiht is located about 85 kilometers (53 miles) northwest of Borkum and 110 kilometers (68 miles) west of Helgoland. At peak times, more than 500 workers will be out at sea building the farm, using a fleet of more than 60 ships. EnBW’s offshore team in Hamburg is running the show.
The installation process is a major operation. The 64 foundations were already set in the seabed last year. Parts for the turbines are loaded onto the installation vessel Wind Orca in Esbjerg, Denmark, and shipped out in a 12-hour journey to the construction site. From there, the turbines are lifted into place. Meanwhile, crews are also working on internal wind farm cabling.
A partner consortium made up of Allianz Capital Partners, AIP, and Norges Bank Investment Management owns 49.9% of the shares in He Dreiht.
Read more: Trump admin halts $5 billion NY offshore wind project mid-build
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
Tesla has released a quick update about its Tesla Semi factory in Nevada. It says that it is on track for volume production of the electric semi truck in 2026.
The Tesla Semi was first scheduled to go into production in 2019, but it has faced numerous delays.
Now, it appears that there is finally some momentum to bring it to volume production.
For the last two years, Tesla has been working to build a new factory next to Gigafactory Nevada, where it builds the battery packs and drive units for most of its electric vehicles built in North America.
Today, Tesla released a “progress update on the factory, confirming that it finished building and it’s now working on deploying the production lines:
Tesla had previously mentioned aiming for volume production by 2025, but it is now only talking about starting production toward the end of the year and ramping up next year.
The automaker reiterated its planned production capacity of 50,000 units.
We recently reported that an early Tesla Semi customer, Ryder, stated that the electric truck program is experiencing more delays and a price increase described as “dramatic.”
They now expect to take deliveries of their first trucks later in 2026 and said that the price has increased “dramatically,” leading them to scale back their pilot program from 42 to 18 Tesla Semi trucks.
When originally unveiling the Tesla Semi in 2017, the automaker mentioned prices of $150,000 for a 300-mile range truck and $180,000 for the 500-mile version. Tesla also took orders for a “Founder’s Series Semi” at $200,000.
However, Tesla didn’t update the prices when launching the “production version” of the truck in late 2022. Price increases have been speculated, but the company has never confirmed them.
FTC: We use income earning auto affiliate links. More.
Vietnamese solar panel maker Boviet Solar just opened the doors to its first US factory — a huge new PV module plant in Greenville, North Carolina.
The company dropped $294 million into the state-of-the-art facility, which will pump out Boviet’s Gamma Series monofacial and Vega Series bifacial solar panels. They’re using advanced PERC and N-Type solar cell tech, which basically means these panels are built to deliver higher efficiency and better performance across residential, commercial, industrial, and utility-scale projects.
The Greenville factory’s first phase is now online with an annual PV module output capacity of 2 gigawatts (GW). For Phase 2, which is scheduled to come online in the second half of 2026, Boviet will invest another $100 million to add 600,000 square feet and ramp up to another 2 GW. It will make high-efficiency solar cells.
Once both phases are complete, Boviet’s campus will cover more than 1 million square feet of manufacturing and R&D space. It’s one of the biggest clean energy manufacturing projects North Carolina has ever seen.
The jobs impact is significant, too. The first phase will create 460 skilled local jobs. Phase 2 is expected to add another 908, bringing the total to over 1,300 direct jobs, plus nearly 2,000 more indirect jobs across the region. That’s good news for Pitt County’s economy, real estate market, and workforce training programs.
“This facility is not just creating jobs, but creating opportunity, innovation, and a stronger foundation for eastern North Carolina,” said Senator Kandie Smith. Governor Josh Stein added that Boviet Solar’s move shows how North Carolina is leading the way in clean energy growth.
Read more: Thomas Built Buses debuts its next-gen electric school bus
If you’re an electric vehicle owner, charge up your car at home with rooftop solar panels. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing on solar, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –ad*
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway