Chinese automaker BYD (SHE:002594, HKG:1211) and steel and nickel producer Tsingshan abandoned plans to build lithium cathode plants in Chile amid a sharp drop in global lithium prices, according to Chile's economic development agency Corfo.
"The companies selected by Corfo have seen their investment decisions affected by global market conditions, which have shown a sharp drop in prices compared to 2022," Corfo said Wednesday.
BYD signaled in January its intent to exit a $290 million project to build a plant that would produce 50,000 metric tons per year of lithium iron phosphate for cathodes, Reuters reported. Tsingshan scrapped a $233 million project to produce 120,000 metric tons of lithium iron phosphate.
Both companies were granted access to preferential lithium pricing through 2030 under Chile's effort to attract investment, according to the report.
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