Chilean Lithium Products to Benefit from U.S. Tax Exemptions
Chilean lithium products are poised to gain from tax exemptions in the United States, a move expected to boost investment in South America’s growing metal and energy transition supply chains. This development follows a newly established inter-governmental agreement, as announced by Chile’s economy ministry.
U.S. Inflation Reduction Act Boosts Chile’s Lithium Exports
The United States’ Inflation Reduction Act (IRA), a landmark legislation enacted in 2022, will now include Chilean lithium products. This inclusion facilitates the export of primary lithium materials, cathode materials, and other high-value lithium by-products from Chile to the US.
The IRA’s tax breaks and incentives are aimed at strengthening battery and energy transition supply chains across North America. This strategy aligns well with Chile’s status as a global leader in lithium production. With the world’s largest lithium reserves, Chile is the second-largest lithium producer globally, behind Australia. In 2023, Chile produced 225,000 tons of lithium carbonate equivalent.
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