THE European Union (EU) and Chile are set to sign a memorandum of understanding (MOU) Med at Developing Value-Added Lithium Projects here in the country.
The agreement, announced by European Commission President Ursula Von der Leyen and Chilean President Gabriel Boric, seeks to strengthen supply chains and foster a strategic partnership.
The European Commission has pledged to give 225 million Euros to help Chile develop a green hydrogen industry and to help secure the European demand for renewable energy.
Chile is estimated to have more than one-third of the world’s reserves for lithium, and as its demand rises with the global shift to electric vehicles, the country aims to become the world’s leading lithium producer again by expanding its mining industry through public-private partnerships.
The collaboration will also focus on green hydrogen projects and the financing of renewable hydrogen initiatives in Chile through the “Team Europe Fund for Renewable Hydrogen”.
This MOU underscores the growing significance of lithium and green hydrogen in the transition to a low-carbon economy, fostering sustainability and resilience in the supply chain and promoting renewable energy to reduce greenhouse gas emissions.
Chile, together with Bolivia and Argentina make up the ‘lithium triangle’ which composes of almost 65% of the world’s lithium reserves.
Von Der Leyen has already signed an MOU in Argentina on June 13 on lithium and other raw materials.
