(Bloomberg) — A joint venture valued at $1.5 billion to $2 billion that wants to become Chile’s third lithium producer is in talks with investors to bankroll its project.
Simco Lithium, owned by a Singaporean investment fund and a Chilean business group, is exploring the sale of a non-controlling stake, said Sebastian Yang, a board member representing the Simbalik fund. While the around $600 million project is too small to appeal to major mining firms, there is interest from battery and electric-vehicle makers.
“We’ve been in talks with different groups along the value chain,” he said in an interview. Users of lithium, a key component in EV batteries, have been investing in exploration and extraction projects around the world as they look to lock in future supplies.
While prices of the metal have plunged in the past year or so as new mines come on stream, the longer term outlook is supported by growing demand in the transition away from fossil fuels.
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