Shanghai (ZXZC)- BYD Chile SpA was recently chosen as a specialized company for the elaboration of lithium value-added products in Chile, specifically for the production of cathode material of the LFP (LiFePO4) type, using lithium carbonate as an input, according to an announcement released by the Chilean Production Development Corporation (CORFO) on Monday.

In August 2022, CORFO invited domestic and foreign companies with proven experience, and technical and financial capabilities to submit proposals for the development of value-added products from lithium carbonate and lithium hydroxide in Chile.

The latest move means that BYD Chile SpA, as a designated lithium producer assigned by CORFO, will be able to access the preferential price of lithium products by SQM Salar S.A. for available quotas of up to 11,244 tonnes/year of battery-grade lithium carbonate (Li2CO3), until 2030.

BYD Blade Battery; photo credit: BYD

In addition, BYD's subsidiary in Chile signed a contract that allows it to construct the "BYD Chile Lithium Cathode Plant" project in the Antofagasta Region. The plant features a planned annual production capacity of 50,000 tonnes per year of LFP-typed cathode materials with an estimated investment of at least $290 million. It is expected to start operation at the end of 2025, offering 500 jobs locally in its investment phase.

BYD made its foray into the Chilean market with its all-electric buses as far back as 2017. In Dec. 2022, it announced the partnership with local automobile dealer group ASTARA for selling its new energy passenger vehicles in Chile.