China says Chile will take steps to stop the lithium SQM trade

Chinese authorities intervened this week to back Tianqi's attempt to seize a 32 % stake in the world's second-largest lithium producer, the Chilean Chemical and Mining Association (SQM), saying any effort to block the $5 billion deal could "have a negative impact".

According to the Chilean newspaper ElMercurio (Spanish), the Chinese ambassador to China Xu Bu publicly condemned the move of the country's development agency Corfo, which in March called on antitrust regulators to prevent SQM from selling to Asia's largest lithium producer.

Bush said opposition to the sale of shares could "leave a negative impact on the development of economic and commercial relations between the two countries."

He also refuted the former Vice President Corfo's claim that the Chinese Government was involved in the negotiations because the country's strategy was to concentrate its production of strategic resources.

In charge of the Corfo leased by SQM at Atacama Salt Leasing, Eduardo Bitrán repeatedly stated that selling products to Tianqi or any company supported by China may affect "competitors in the lithium market". This is the key mineral used in manufacturing batteries for electric vehicles.

Nutrien (Toronto Stock Exchange Stock Code: NTR), which was recently merged with PotashCorp. and Agrium, must sell its stake in SQM by April 2019 as part of the merger conditions for the creation of the company's business.

The American chemical company AlbemarleCorporation (New York Stock Exchange code: ALB) is also known as wanting to obtain shares of Chilean lithium producers and is a close partner of Tianzhu.

Albemarle holds a stake in TalisonLithium 49 <UNK>, of which Tianzhu holds a 51 <UNK> stake. Talison is not only a major participant in the market, but also develops multiple lithium projects in Chile and Australia, so this relationship is threatening for Chile.

The Office of the National Economic Prosecutor of Chile has decided whether to pursue the proceedings brought by the local authorities. According to the local newspaper LaTercera, officials met with the office on 29 March to discuss the issue.

Bitrán revealed to the media that he had seen confidential documents confirming that tomorrow he had submitted a "non-binding" offer at the end of 2017 to show Nutrien's shares in SQM, which at that time had a market value of more than 20 <UNK>.

He also said that the documents confirmed that through Talison, Albemarle and Tianqi jointly owned 34 cents of the global lithium market.

Bitrán warned that because Talison, Albemarle, and SQM recently announced plans to increase production if Tianqi is allowed to buy shares in Chilean companies, these companies will eventually control the world lithium market of at least 80 tons by 2020.

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