Chilean-mined lithium used for EV batteries and other products will be eligible for US tax benefits, its government has said.
The incentives are those outlined by the US Inflation Reduction Act (IRA), which includes subsidies for EVs, based on their battery metal sourcing, Reuters reports.
Chile, in South America, is the world’s second largest lithium producer. It has a free trade agreement with the US.
Under IRA rules, a certain percentage of critical minerals in EV batteries must come from the US or a country it has a free trade agreement with.
The economy ministry said that the tax breaks will incentivise Chile’s export of raw lithium materials as well as more expensive cathode material and lithode byproducts.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataEarlier this year, Hyundai Motor Group signed a long term agreement with Chilean mining group Sociedad Quimica y Minera de Chile (SQM) for the supply of lithium hydroxide for its EV batteries.