BYD, Tsingshan Scrap $523 Million Lithium Projects in Chile After Price Drop, Ending Preferential Deal

10 posts • GPT (4.1)

Updated May 8, 2025, 06:01 AM

Chinese companies BYD and Tsingshan have withdrawn from multimillion-dollar plans to build lithium processing plants in Chile. Both firms had been selected by Chile's economic development agency, Corfo, to produce lithium cathodes and batteries as part of a preferential lithium price deal intended to spur investment in the sector. The decision to abandon the projects comes amid a sharp decline in global lithium prices, which has impacted investment decisions. BYD had planned a $290 million plant to produce 50,000 tons of lithium iron phosphate (LFP) cathode material annually, while Tsingshan had proposed a $233 million facility with a capacity of 120,000 tons of LFP per year. BYD filed its withdrawal notice in January, according to Chile's national assets ministry. Corfo stated, "The companies selected by Corfo have been affected in their investment decisions by the global market conditions, which have shown a sharp drop in prices." Chilean authorities, including Finance Minister Mario Marcel, expressed regret over the companies' withdrawal. The government’s lithium development plan has faced criticism following the exit of BYD and Tsingshan. Lawmakers have called for urgent hearings with relevant ministers and Corfo to discuss the failure of the industrial projects. The withdrawal is expected to result in the loss of jobs and millions of dollars in potential investment for Chile.

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Sources

df.cl(11)cnnchile.com(5)reuters.com(4)biobiochile.cl(4)

Reuters Tech News

@ReutersTech

China's BYD, Tsingshan scrap plans for Chile lithium plants https://t.co/CKkzG9jK2K https://t.co/CKkzG9jK2K

CnEVPost

@CnEVPost

BYD withdraws plans to build lithium plant in Chile as lithium prices plunge BYD and Tsingshan are backing out of multimillion-dollar plans to build lithium cathode plants in Chile, according to Reuters. https://t.co/mKUZD81quu 👇

CNN Chile

@CNNChile

Fractioning Act: PacificBlu announces closure, Landes accuses expropriation and deputy alerts for employment https://t.co/sSOQpqPSWR