BYD Co. is facing uncertainty regarding the timeline for its lithium project in Chile as it continues to negotiate with local authorities. The Chinese electric vehicle giant was granted preferential access to lithium carbonate produced by Chile’s SQM in April of the previous year. This arrangement was intended to supply a new plant that would start producing lithium iron phosphate for cathodes by the end of 2025. However, final terms are still pending, and BYD executive vice president Stella Li indicated in a recent interview that the project’s start may be delayed. She emphasized that securing favorable terms remains crucial for the company.
“We are still negotiating with the local government,” Li stated. “The ball is now in the government’s court.”
Corfo, the Chilean government agency responsible for overseeing lithium resources, declined to comment on the matter. For BYD, this cathode project represents a strategic opportunity to establish a presence in a country that holds the world’s largest lithium reserves. Conversely, Chile sees the project as a step toward advancing its position in the battery supply chain.
However, lithium prices have recently fallen to their lowest levels in three years, driven by new production coming online amid a slowdown in global electric vehicle demand. Additionally, it remains uncertain whether BYD will secure preferential pricing beyond the current license held by SQM, which is set to expire in 2030. SQM has recently reached an agreement to transfer a majority stake in its brine assets to the state-owned company Codelco in exchange for an extension of its operational license.
