BYD: Continues Planned Investment in Lithium Resources in Chile

Automotive Author: Notrice May 16, 2024 06:12 PM (GMT+8)

May 15th, Tamara Berrios, the Chilean business manager of the Chinese electric vehicle giant BYD(比亚迪), stated that the company is awaiting approval from the Chilean government for a lithium cathode project, clarifying reports of delays regarding the project. Berrios stated, "The plan is underway, and BYD's plan to invest in lithium in Chile remains unchanged."


Chile, situated in the western part of South America, possesses significant advantages in lithium resources. According to the latest statistics, Chile ranks among the top global lithium producers, particularly in the Atacama Desert region, where lithium deposits are abundant, occupying a significant share of the global lithium market. The environmental conditions in this region provide unique advantages for lithium mining, with reserves reaching nearly 9.2 million metric tons, making it a crucial repository of lithium resources.

As global demand for new energy vehicles continues to rise, lithium, as a core material for battery manufacturing, is becoming increasingly strategic. BYD is actively expanding its presence in Chile, a country rich in lithium resources, to ensure a stable supply of lithium resources.

In recent years, Chile's lithium production has continued to grow, with its share of global lithium production increasing annually. In 2023, Chile accounted for 26% of global lithium production, making a significant contribution to the stable supply of the global lithium market. With the booming development of the new energy vehicle market, the strong momentum of lithium demand highlights the strategic importance of Chile's lithium resources.

According to information obtained by EqualOcean, on May 7th, the South Korean market research firm SNE Research released the latest data, showing that the total installed capacity of various types of batteries worldwide reached 158.8 gigawatt-hours (GWh) in the first quarter of this year, a year-on-year increase of 22%. In terms of rankings, two Chinese companies still occupy the top two positions. CATL(宁德时代)'s battery installation capacity reached 60.1 GWh, a year-on-year increase of 31.9%, maintaining its position as the global leader, while BYD's installed capacity was 22.7 GWh, surpassing South Korea's LG Energy Solution, ranking second. The leading position of Chinese power battery manufacturers in the global market is closely related to the prosperity of China's new energy vehicle market and its technological strength.

As a global leader in new energy vehicle manufacturing, BYD's demand for lithium resources is growing. In order to ensure the sustainable development of its electric vehicle business, BYD is actively laying out lithium resource development projects worldwide. The lithium cathode project in Chile is one of BYD's significant investments in South America, holding profound strategic significance for BYD, and helping BYD maintain its leading position in the global new energy vehicle market.