The bilateral management carried out between Chile and the United States, through the High Level Group within the framework of the Inflation Reduction Act (IRA Law), has concluded favorably for the South American country, allowing products made of lithium with added value, critical for the production of battery components, access the benefits established in this law for electric vehicles, a measure that increases incentives for investment in lithium in Chile.
Thanks to the efforts made and conversations held in the high-level group headed by the Minister of Economy, Development and Tourism, Nicolás Grau, and the Undersecretary of International Economic Relations (SIbrei) Claudia Sanhueza, it was possible to consolidate Chile’s advantageous position framed in this bilateral Free Trade Agreement.
“In this way, our country will access the benefits established in the IRA for critical minerals” indicated a statement from Subrei.
Following the publication of the final regulations by the United States Government, this will allow Chile to not only benefit from the export of primary lithium materials, but, in line with the National Lithium Strategy, also through the export of cathode material or lithium by-products with higher Chilean added value, essential for the production of battery components.
This result is favorable for investment in lithium in Chile, where the tax benefit established in the IRA for electric vehicles will work to encourage the production of critical minerals, for example, cathode material.
“The Chilean government has been seeking to take advantage of the largest lithium reserves in the world to advance in the value chain, offering preferential prices for the metal to firms that manufacture higher value-added materials. Treating those components manufactured in Chile as of national origin would increase the attractiveness to invest in the country,” the statement concluded.
Source link : https://www.americaeconomia.com/en/node/287729
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Publish date : 2024-07-12 08:42:00
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