Chile's two major mining companies plan to increase production by 70% for their joint lithium venture.

Chilean chemical and mining industries, as well as Chile's national copper industry, are paving the way for their large lithium joint venture project to increase production by over 70%, placing long-term bets on battery demand. In an environmental impact study on a $3 billion business transformation plan, the joint venture Novandino stated that their goal is to achieve an annual production capacity of up to 470,000 tons, compared to this year's guidance of around 270,000 tons. The company did not specify when they expect to reach this new target. In addition to demand from electric vehicles, grid-level battery storage is also driving demand, and Novandino hopes to capitalize on the opportunity of double-digit growth in global lithium consumption. As the industry moves away from global oversupply, this expansion may put pressure on higher-cost competitors. However, it will still take several years to achieve the additional production capacity. According to documents submitted on Friday, under the current framework, production is expected to gradually increase to about 300,000 tons, after which the joint venture will begin a seven-year transition towards a comprehensive production system incorporating technologies such as direct lithium extraction.