How BYD Chile prepares for the lithium industry’s take-off

The Chilean subsidiary of Chinese electromobility company BYD is planning to build a US$290mn, 50,000t/y lithium cathode plant in Antofagasta region.

Expected to start in 2025, the unit will be supplied with 11,240t/y of lithium carbonate from local company SQM Salar at a preferential price through 2030.

Having started as the country’s first supplier of electric urban buses, BYD Chile was also selected by development agency Corfo to promote added value in the lithium industry.

BNamericas talks to BYD’s country manager Tamara Berríos about the plant and Chile’s lithium prospects.

BNamericas: Where exactly will the plant be installed and where will water and energy come from?

Berríos: We are defining the best location, which will determine where the water and energy come from and which can be electric or natural gas. The specific area depends on factors such as transport logistics, the volumes we bring to the lithium carbonate plant, and the volumes we will take out of cathode material. Cathode material volumes will be higher than carbonate, so we'll have more outputs than inputs, and that could specifically determine where we'll build.

BNamericas: Will you market the products?

Berríos: No. It is only for internal consumption.

BNamericas: Where will you get human resources and equipment to build the plant?

Berríos: The equipment, the design and the proposal come from China, but the human capital is local.

BNamericas: What are BYD's prospects for the lithium battery manufacturing line?

Berríos: We have opted for a development that transforms the battery into an increasingly efficient device. This has translated into how we densified the battery and increase energy capacity. Comparing current lithium batteries with those produced 10 years ago, we managed to reduce the size and increase vehicle autonomy.

BNamericas: How do you deal with the threat of a lithium battery substitute?

Berríos: There is always talk of substitutes, but the chemical compositions have shown that this is the best option for electromobility.

BNamericas: What do you think of the public-private partnership system to develop lithium projects in Chile?

Berríos: We find it interesting. This type of link allows the State to obtain and create knowledge, besides developing lines of research and development together with private companies that follow these business lines, as is our case. We offer public-private partnerships and we are always thinking of being a contribution to the technological and productive development of the country.

BNamericas: What do you think of the debates around the national lithium policy?

Berríos: We pay a lot of attention to the debates and hope the guidelines will be specified. Regardless of whether we participate in the conversation, concrete actions that emanate from this policy interest us the most. We will always participate under the conditions the government determines.

BNamericas: What other investment plans do you have in Chile?

Berríos: The cathode material plant and electric buses are two business lines. In the vehicle business area, we are marketing cars through our partner Astara and will expand the offer for the consumer market as more models of trucks and machinery and even trains arrive.

In the mineral area … we are awaiting the bidding processes the government opens, including for the development and production of lithium. We will continue to introduce ourselves to the complete production process to continue adding value.

BNamericas: What alliances has BYD sealed to boost vehicle sales?

Berríos: The main ones are in energy and finance. At the beginning, when BYD sought to promote public transport throughout Latin America, the sector faced big financing problems. It was not enough just to convince operators to switch from a diesel bus to an electric one, but they also had to be helped to get the funds because local banks did not finance them.

Today is similar, but processes associated with Santiago’s transport system have foreign investors, which do not include local banks.

We sealed our first alliance with Enel, getting this actor mostly from the energy field involved in financing. These types of alliances have been essential to promote electromobility and vehicles. The next question for customers or operators is how much energy costs and where it is purchased, for which we created alliances with private entities, too.

BNamericas: Could increasing Chinese lithium investments in Latin America upset the energy transition globally?

Berrios: Geopolitical debates always concluded that foreign capital can gain control over minerals or natural resources of a country. In the case of minerals in Chile, specifically lithium, the government protects the property very well, and basically works through concessions.

We have to be super transparent in recognizing that it has been done this way because there are no resources to carry out world-class technological development in Chile.