When it comes to the rapidly growing electric vehicle and energy storage markets the question is not how many lithium-ion batteries can companies make, but how to source the raw materials.
That’s why Chinese lithium-ion battery materials maker Ningbo Shanshan is in advanced talks to buy a stake in Chile’s Sociedad Quimica Y Minera (SQM), at least according to news outlet Reuters.
Reuters quotes a source as saying Shanshan is interested in buying more than 30% of SQM.
The move on SQM shows how firms are looking to secure future materials amid a predicted boom in the EV market.
SQM has exclusive access to vast, low-cost lithium bearing deposits in northern Chile, and is reportedly one of the world’s biggest lithium producers.
Although Shanshan has failed to confirm the rumours, it did make an announcement on August 18 stating it was planning a major acquisition and requested its shares suspended.
In June, Shanshan’s chairman and general manager, Wei Zhuang, and deputy GM Cheng Qian met with Chile’s state development agency Corfo, Reuters quotes the Chilean government’s transparency website.
The reason given for their meeting was to ask about the government’s position on foreign companies buying shares related to SQM.
Chile’s Mining Minister Aurora Williams said in March that the country would not block a foreign takeover of SQM.
