(Yicai Global) April 26 -- BYD said it has reached an agreement with Chile’s La Corporación de Fomento de la Producción to obtain the production qualification and a factory construction license for lithium iron phosphate cathode materials in the South American nation.

China’s largest electric vehicle maker will set up a cathode material plant in the Antofagasta region of northern Chile, with a planned annual output capacity of 50,000 tons and a total investment of more than USD290 million, the Shenzhen-based auto giant said yesterday.

The plant is scheduled to officially start operation by the end of 2025 and create 500 local jobs, BYD added.

Thanks to the recent bid to become a CORFO-designated producer of lithium battery materials, BYD can obtain the supply of raw materials produced by Chile’s SQM at competitive prices, which can reach 11,244 tons per year by 2030.

Chile’s lithium sector has entered a period of accelerated development, said Li Ke, executive vice president of BYD and president of BYD Americas. The carmaker hopes to provide strong support in innovation and research and development to stimulate the new vitality of Chile’s economic development, he added.

Back in 2017, BYD’s first pure electric bus entered the Chilean capital Santiago, and in December 2022, BYD announced a partnership with local car dealer group Astara to sell passenger cars.

Editor: Peter Thomas