SQM announced this Monday that, through its subsidiary SQM Salar, it reached an agreement with the Korean automotive companies Hyundai Motors and Kia Corporation for the long-term supply of lithium hydroxide for the manufacture of electric vehicle batteries.
The CEO of SQM Salar, Carlos Díaz, highlighted that “we are very proud to announce this agreement to supply high-capacity lithium hydroxide for batteries with a world-leading producer of electric vehicles such as Hyundai and Kia, contributing to a cleaner world.” .
For his part, Felipe Smith, commercial vice president of Lithium of the company, indicated that “Hyundai and Kia’s confidence in our supply is a strong motivation to continue with our lithium hydroxide expansion plan.”
The mining company did not disclose the amounts involved in the agreement.
This is not the first time that the mining company has reached this type of agreement with an automobile manufacturer. Last year SQM and Ford Motor Company announced a long-term strategic agreement with the aim of ensuring the supply of high-quality lithium products for the production of electric vehicles.
In April SQM reported that its investment plan for 2024-2025 amounts to US$2,440 million, figure that includes maintenance activities, but of which approximately US$1.4 billion will be allocated to lithium capacity expansion projects in Chile, US$700 million related to nitrate and iodine capacity expansion projects in Chile, and US$340 million related to the Mt. Holland lithium project in Australia plus other exploration projects in that country.
At the end of May, Codelco and SQM signed an agreement to jointly produce lithium from 2025 to 2060.
The agreement indicates that it is hoped to achieve a total additional production for the period 2025-2030 of 300 thousand tons of lithium carbonate equivalent (LCE), while for the period 2031 to 2060 a lithium production of 280 thousand to 300 thousand is defined. annual tons of LCE.
