The US is set to scale up mineral imports from Chile, a major supplier of lithium used in electric vehicle (EV) batteries, as reported by Reuters on March 2. US Treasury Secretary Janet Yellen predicted that the US would “substantially” expand its procurement of lithium from Chile in the coming years. The intention was unveiled during Yellen’s Saturday visit to a lithium processing facility in Chile’s northern city of Antofagasta. According to Yellen, strengthening US-Chilean ties would benefit both countries, improve energy security, and help achieve key climate goals.

Chile is the world’s largest producer of copper and the second largest producer of lithium, both components essential for green manufacturing areas including EVs, wind turbines, and power transmission networks. Aside from the irreplaceable position in key mineral supply, Yellen underscored Chile’s role as America’s free-trade partner that produces with “great environmental sensitivity” and has a strong climate agenda. On top of this, the deepening of US-Chilean ties aligns with the US strategy to reduce reliance on the China-led clean technology supply chain, covering products ranging from solar parts to EV batteries. As the world’s largest EV manufacturer, China purchased around two-thirds of Chile’s lithium exports last year. In the context of China-US competition in clean technology production, Chile is crafting a new national lithium strategy to avoid domination by any single country in production.

Sources:

https://www.reuters.com/business/environment/yellen-visits-us-lithium-site-chile-eyes-progress-green-transition-2024-03-02/

https://www.bloomberg.com/news/articles/2024-03-02/yellen-praises-ties-with-chile-a-vital-part-of-ev-supply-chain