In race for electric car resources, Chile slams brakes on lithium deal with Chinese firm

Chile’s government has asked antitrust regulators to block the sale of a stake in lithium company SQM to a Chinese company on the grounds it would give China an unfair advantage in the global race to secure resources to develop electric vehicles, according to a document seen by Reuters.

Chile development agency Corfo, which oversees SQM’s lithium leases in the Salar de Atacama, claimed in a 45-page complaint filed on Friday that the purchase of a stake in SQM by “Tianqi Lithium, or any entity related to it directly or indirectly (including companies controlled by the government of China)” would “gravely distort market competition”.

Eduardo Bitran, head of Corfo, said in an interview on Friday that Tianqi Lithium late in 2017 presented a “non-binding” offer for Nutrien Ltd’s – formerly Potash Corp of Saskatchewan – 32 per cent stake in SQM.

SQM is one of the world’s top producers of lithium.

The offer was more than 20 per cent over market value at the time it was presented, when SQM shares had reached all-time highs, Bitran said.