Export-Import Bank Provides $100 Million to Chilean Mining Company to Secure Lithium Supply Chain

SQM to Supply $470 Million Worth of Lithium to Domestic Companies Over 10 Years

[Asia Economy Reporter Yu Je-hoon] The Export-Import Bank of Korea (KEXIM) has launched large-scale financial support to ensure stable lithium procurement for domestic companies.

On the 7th, KEXIM announced that it will provide a total of $100 million (a $55 million loan and a $45 million guarantee) to SQM, a Chilean mineral production company. SQM is the world's second-largest lithium producer, owning lithium mines in Chile and Australia, and holds about 19% of the global lithium market.

The funds provided by KEXIM will be used for the development of SQM's lithium mines in Australia and for the renovation and expansion of production facilities. Additionally, under the credit agreement with KEXIM, SQM is required to supply approximately $470 million worth of lithium to domestic battery cell and cathode material manufacturers over a 10-year loan period. This enables domestic companies to secure lithium resources amounting to about five times the funds provided by KEXIM.

Lithium, a key mineral for cathode materials in electric vehicle secondary batteries, is produced only in limited countries such as Chile and Argentina. Yoon Hee-sung, President of KEXIM, stated, "Following the conditional financial support for key mineral supply to Trafigura in Singapore at the end of last year, this financial support to SQM has made it possible to secure lithium, an essential mineral for secondary batteries, stably. Going forward, KEXIM plans to expand its financial support base to energy resources such as oil and gas and unstable grain resources to contribute to stabilizing South Korea's supply chain."

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