EsThe CEO of fertilizer producer Potash Corp, Jochen Tilk, has stated that the company has received interest from Chinese buyers for its 32% stake in lithium producer SQM, according to Bloomberg. That follows reports by Reuters earlier in November that a consortium including Rio Tinto was preparing a bid for the stake.
While the stake wouldn’t give a buyer full control of SQM, it may enable a degree of control over who SQM signs long-term contracts with. The company’s lithium carbonate and lithium hydroxide are a foundational component of the batteries used in electric vehicles.
Competition for supplies is not surprising, with available supplies appearing to have been tapped out already. Panjiva data shows Chilean exports of the lithium derivatives actually fell 1.2% on a year earlier in the third quarter.
Chinese importers have already outpaced U.S. buyers, having increased their purchases by 4.4% while shipments to the U.S. fell 23.8% over the same period. That may put U.S.-based battery- and auto-maker Tesla at a disadvantage to its Asian competitors. South Korea and Japan remain the largest shipment destinations, however, with purchases of lithium used for consumer electronics’ batteries accounting for 27.2% and 19.2% respectively or Chilean exports.
Source: Panjiva
