Chile and the European Union will sign a MOU soon to develop value-added lithium projects in Chile, Ursula von der Leyen, president of the European Commission, said on Wednesday.

Speaking to reporters in a joint press conference with Chilean President Gabriel Boric, von der Leyen said the two parties reached an agreement to develop a strategic association to develop lithium and strengthen supply chains.

“We’re working to sign an MOU soon,” von der Leyen said. “This strategic association will allow us to create local added value here in Chile.”

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Chile announced a plan to expand lithium mining in the country through state-controlled public-private partnerships in April in an attempt to regain its position as the world’s top lithium producer.

Lithium is a key material for electric-car batteries.

Both leaders also announced new projects that are part of a green hydrogen initiative between the EU and Chile. A “Team Europe Fund for Renewable Hydrogen in Chile” initiative will finance new renewable hydrogen projects in Chile.

The fund will have more than 200 million euros, mostly financed by the European Investment Bank and KfW, which will be managed by Chile’s state development agency.

Source: Reuters