The European Union (EU) and Chile will sign a memorandum of understanding (MOU) to develop value-added lithium projects in Chile, according to Ursula von der Leyen, president of the European Commission. Speaking at a joint press conference with Chilean President Gabriel Boric, von der Leyen said the two parties had agreed to develop a strategic association to develop lithium and strengthen supply chains.
Our #GlobalGateway Strategy will drive forward a fair, green and digital transition, be mutually beneficial and bring both regions even closer together.
Discover our projects for Chile ↓
— European Commission (@EU_Commission) June 14, 2023
Chile is seeking to expand its lithium mining industry through state-controlled public-private partnerships, with the aim of becoming the world’s top lithium producer once again. Lithium is a key component in the production of electric-car batteries, and demand for lithium is expected to increase as more countries transition to electric vehicles.
Under the new agreement, the EU and Chile will work together to develop value-added lithium projects in Chile, with the aim of creating local added value and strengthening supply chains. The two parties will also develop a strategic association to strengthen cooperation in the field of green hydrogen.
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The EU and Chile have also announced a new initiative to finance renewable hydrogen projects in Chile. The “Team Europe Fund for Renewable Hydrogen in Chile” will have more than 200 million euros, mostly financed by the European Investment Bank and KfW, which will be managed by Chile’s state development agency. The initiative is part of a wider effort to promote the use of renewable energy and reduce greenhouse gas emissions.
The MOU between the EU and Chile highlights the growing importance of lithium and green hydrogen in the transition to a low-carbon economy. By working together, the EU and Chile can help to create a more sustainable and resilient lithium supply chain, while also promoting the development of renewable energy and reducing greenhouse gas emissions.
Overall, the new agreement between the EU and Chile is a positive step towards the development of a more sustainable and resilient lithium supply chain, and the promotion of renewable energy. As demand for lithium and green hydrogen continues to grow, it is important for countries to work together to ensure a secure and sustainable supply of these critical materials.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — In the Featured Photo: European Commission President Ursula von der Leyen. Featured Photo Credit: Wikimedia Commons.
