Chile's mining minister recently said that the Chilean government has decided to set up a state-owned lithium enterprise and hopes to have a model for the company by the end of the year.
Chile is the second largest producer of lithium in the world and the country with the most abundant lithium reserves in the world. At present, its domestic lithium industry is currently dominated by two private companies, Albemarle and Chilean Chemicals (SQM).
Chile wants to be more closely involved in the booming lithium market. Lithium is an important raw material for the production of electric vehicle batteries. Assisted by the accelerated electrification of the global automotive industry, lithium prices have been hitting record highs over the past year, attracting more market participants. In addition to the Chilean government, Mexico and Argentina also want to Take a piece of this market.
The government is understood to be forming a task force to determine the best options for running state-owned lithium companies. The Chilean government hopes to have a plan by the end of the year on how the company will develop and what business model it will operate.
