As the price of key battery materials has soared to the level of "unreasonable" and "unhealthy", Chinese electric vehicle giant BYD planEntering Latin America and Africa's lithium business to establish reserves for the future.NotBloomberg reported that Li Ke, Executive Vice President of BYD, said at San Diego, the capital of Chile on Tuesday (December 6) that the company "is looking for any opportunities around the world" to obtain a lithium supply."Including Africa, Chile, and Argentina. Every country with lithium ore resources, we want to participate and build reserves for the future."
BYD is negotiating in Chile to participate in a mining project and is applying for processing permits.NotThe surge in demand has benefited electric vehicles and rechargeable batteries, but they are also facing tight supply of raw materials such as lithium and copper.In order to ensure future supply, they have invested in participating in mining and processing projects.
supply is in short supplyThe situation promoted the soaring lithium price to a record high, and China's lithium prices rose more than double this year.However, Li Ke predicts that with the new mine is put into production, the market will supply excess next year and the price will stabilize.NotIt is the world's largest copper -producing country and the second largest lithium supply country. BYD has supplied electric buses and taxis here, and has opened a dealer for the high -end consumer market.But this Chinese giant is famous for vertical integration, hoping to establish a local supply chain in Chile.NotKe said that BYD hopes to provide a direct extraction of lithium to Chile's mines and ensure the supply by reaching a contract sales agreement with the manufacturer.There, BYD will use these lithium mineral production for the positive electrode material for electric vehicle batteries, but it is not planned to make batteries in Chile.NotKe said that BYD is still negotiating a Chilean mining project with potential partners and has applied for a positive material processing permit for CORFO of the national development agency.NotIn the first three quarters of the performance of the first three quarters of the 2022, BYD has mentioned the profit pressure brought about by the high level of commodity prices and the rise in upstream raw material prices.