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Green Hydrogen H2 News

EU and Chile Join Forces to Boost Lithium Development and Green Hydrogen

Anela DoksoBy Anela Dokso15/06/20232 Mins Read
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The European Union (EU) and Chile are set to sign a memorandum of understanding (MOU) aimed at developing value-added lithium projects in Chile.

This agreement was announced by Ursula von der Leyen, president of the European Commission, during a joint press conference with Chilean President Gabriel Boric. The partnership aims to strengthen the supply chains and create local added value in the lithium sector.

Chile, already a significant player in the global lithium market, aims to expand its lithium mining industry through state-controlled public-private partnerships. The country aspires to regain its position as the world’s top lithium producer, driven by the increasing demand for lithium in electric vehicle (EV) battery production. With the global shift towards electric mobility, the demand for lithium is expected to surge.

The collaboration between the EU and Chile will focus on the development of value-added lithium projects in Chile, aiming to enhance local value creation and strengthen supply chains. Additionally, the two parties will establish a strategic association to promote cooperation in the field of green hydrogen.

Furthermore, the EU and Chile have jointly announced the establishment of the “Team Europe Fund for Renewable Hydrogen in Chile.” This initiative will be backed by over 200 million euros, primarily financed by the European Investment Bank and KfW, and managed by Chile’s state development agency. The fund aims to finance renewable hydrogen projects in Chile, contributing to the promotion of renewable energy and the reduction of greenhouse gas emissions.

The MOU between the EU and Chile underscores the increasing significance of lithium and green hydrogen in the transition to a low-carbon economy. By collaborating, the EU and Chile can work towards establishing a more sustainable and resilient lithium supply chain while promoting the development of renewable energy and reducing greenhouse gas emissions.

This agreement marks a positive step towards fostering a sustainable and resilient lithium supply chain and advancing the adoption of renewable energy. As the demand for lithium and green hydrogen continues to rise, it is crucial for countries to cooperate in order to ensure a secure and sustainable supply of these essential resources.

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