December 22, 2022: The European Commission said on December 9 that it is ending talks with Chile to unlock investment potential for lithium supplies for the European battery manufacturing market.
The proposals agreed under the EU-Chile Advanced Framework Agreement will strengthen economic relations and ensure better access and sustainable investment in critical raw materials such as lithium, the Commission said.
Under the terms of the agreement, which has yet to be ratified, almost all EU exports to Chile will be tariff-free, which should increase the value of EU exports to Chile to €4.5 billion ($4.8 billion) .
Investors from the European Union in Chile – and vice versa – will be treated equally, including in the energy and raw materials sectors, according to the agreement.
Once it enters into force it will ensure greater access to “raw materials and clean fuel important for the transition to a green economy, such as lithium, copper and hydrogen”, the Commission said.
The agreement followed talks in Brussels between the Commission’s executive VP and trade commissioner Valdis Dombrovskis, the Commission’s high representative and VP Josep Borrell (pictured) and Chile’s foreign minister Antonia Urrejola.
Borrell said on the 20th anniversary of an existing EU association agreement with Chile that: “The new agreement puts common values such as human rights, sustainability and the fight against change- or the climate of the heart of the partnership,” he said.
The European Battery Alliance said on December 15 that the approval procedures for battery projects and raw materials in the EU and individual member states of the bloc “lack speed and clarity, compared to other world economies… project implementation”.
Photo courtesy of Lukasz Kobus/European Union 2022
