Tusheti, GeorgiaChile to Nationalize its Lithium - What Does it All Mean?
Does the creation of a state-owned Lithium company presage a deal with China?
Excerpt:
Socialist Chilean President Gabriel Boric announced Thursday that his government will nationalize the country’s lithium industry, a move that Reuters reports as a “shock” to most in the media. Why it would shock anyone when a socialist decides to nationalize any industry is a bit of a mystery, but there it is.
In a televised address, Boric claimed, “This is the best chance we have at transitioning to a sustainable and developed economy. We can’t afford to waste it.”
Here are some relevant facts about the resource Boric seeks to nationalize:
Chile owns fully 40% of the proven lithium reserves in the world.
That is roughly equivalent to the percentage of copper reserves owned by Chile.
Boric’s plan would put Coldelco, the national company in charge of Chile’s copper mining, in charge of overseeing the development of Chilean lithium.
In the measure of lithium reserves, Chile leads the world by far.
The country ranks third in terms of known lithium resource, a different, less technical measure, behind Bolivia and Australia.
Neighboring Argentina ranks 4th globally in known resource.
Thanks to involvement by international companies like SQM and Albermarle, is far more advanced in the proving and recovery of the production than either of its South American peer countries.
Chile, Argentina and Bolivia together are home to the famous Lithium Triangle, a massive extent of high-altitude salt flats that constitute by far the world’s biggest known lithium resource.
The Lithium Triangle resource has been a coveted target for western governments interested in establishing China-free supply chains for lithium needed to power their own electric vehicles and renewable energy industries.
But in January, the government of Bolivia awarded lithium production and battery manufacturing contracts to two Chinese firms, giving China its first significant foothold into South American lithium
It is perfectly reasonable, in light of this accumulation of facts and events, to speculate about whether Boric’s desire to nationalize his country’s lithium industry could be a precursor to his government engaging in a similar arrangement with the communist Chinese government.
Such speculation becomes even more justified in light of comments made by Chilean officials last November of plans to elevate cooperation with China related to their lithium resources. In a story reported by the Global Times, Gustavo Diaz Hidalgo, Chile’s consul general in Chengdu, revealed his government’s plans to further enhance cooperation with China in the lithium sector.
“Chile’s lithium mining and export volume has seen an increase thanks to strong demand from the Chinese market, and it has become one of Chile’s most important export commodities,” said the consul general during the 2022 China (Suining) International Conference on the Lithium Battery Industry.
Indeed, Bloomberg reported Friday that “This week, China’s BYD Co. was granted access to preferential prices to make battery-grade lithium carbonate at a plant that would begin operating by end-2025,” and goes on to note that “China is Chile’s biggest trading partner based on raw material exports.”.....
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Interesting times ahead for the EV and renewable energy markets. More importantly IMO is while FJB is basically asleep at the wheel, China’s busy expanding its interest in America’s backyard.
Tusheti, GeorgiaAMLO Tells U.S. Government That Mexico Doesn’t Want, Nor Does It Need, Help Against Organized Crime
Translated excerpt:
During the 109th anniversary of the defense of the port of Veracruz - which commemorates the resistance of the Mexican Armed Forces to the second US invasion of Mexican territory in 1914 - President Andrés Manuel López Obrador told the US government on April 21, 2023, that Mexico “does not want or need help” to fight organized crime.
.....”The greatest lesson [of the historical event] is that we are free, we are independent and we, Mexicans, have to settle our differences without the intervention of any country, of any power, of any hegemony. We are free and we are sovereign,” said the politician from Tabasco.
“There is talk in the United States of intervening and confronting organized crime and drug traffickers, treating them as terrorists and for that reason they are going to come to help us, to support us in confronting organized crime. It has cost us a lot to assert our sovereignty and, although these are, I repeat, good intentions, they are matters that only correspond to us Mexicans”, emphasized López Obrador.
.....”All of us together, that is the priority, the security of our people and also to help, to cooperate with the United States government to face together the problem of drug consumption, especially the pandemic of fentanyl use, cooperation not subordination,” he said.