SANTIAGO - Chile's SQM, the world's second-largest lithium producer, plans to invest $900-million this year as part of its plan to increase lithium carbonate and hydroxide production capacity, the head of its board said on Tuesday.
In the next few months, the company expects to complete its original program to increase lithium carbonate production capacity to 180 000 metric tonnes per year, while working towards 210 000 t by early 2023.
"During 2021, our investment plan reached $472-million and recently the board approved an investment of $900 million by 2022," said outgoing board Chairman Alberto Salas at a shareholders' meeting.
In addition, the company plans to increase lithium hydroxide production capacity to 40 000 t annually by early next year.
The prospect of rising global demand for the light metal that is essential for batteries is driven by the shift to electric vehicles and the increased use of electric batteries.
SQM is also moving forward the Mt. Holland lithium project in Western Australia, an equal partnership with Wesfarmers Limited.
Chile's lithium industry is dominated by SQM and Albemarle, which have major projects in the Atacam salt flats, where the companies use brine pools to extract lithium from beneath the surface.