Lithium In Focus As US Senate Ratifies US-Chile Tax Treaty

The United States Senate voted 95-2 yesterday to ratify a US-Chile tax treaty which could boost investment between the two countries and provide Washington increased access to Chile’s lithium reserves.

• Senate Majority Leader Chuck Schumer (D-NY) said: “Chile is the home to the world’s largest lithium reserves, the precious metal used in emerging technologies like iPhones, EV batteries, and renewable energy storage. So, as the world races to advance clean energy technologies, Chile will be a critical ally for anyone looking to lead the way.”
• Last week, Chilean President Gabriel Boric unveiled a 33 page national lithium strategy (Spanish) which outlines a comprehensive strategy for managing the resource.
• FP reports, "Boric does not seek a full-blown nationalization of Chile’s lithium sector, but he does aim to create a state lithium mining company with a significant stake in the industry."
• FP notes that, "Creating the company would require a higher level of congressional support than he has enjoyed so far."
• "As one of the first actions in the national lithium strategy, [state copper firm] Codelco is seeking to renegotiate the country’s existing leases with SQM and Albemarle. Those expire in 2030 and 2043, respectively."