EU and Chile forge partnership for critical minerals and green hydrogen

Days after signing a critical minerals MoU with Argentina, the European Union has inked a similar deal with the government of Chile.

During a recent visit to South America, EU president Ursula von der Leyen and Chile president Gabriel Boric agreed to collaborate on critical minerals and green hydrogen initiatives.

Chile is the holder of the world’s third largest store of lithium reserves and is second behind Australia only as a lithium producer.

The country is already a very important supplier of lithium to Europe, where demand for the critical metal is expected to increase dramatically.

Alliance to harness critical minerals

President von der Leyen said critical raw materials will play a significant great role in Europe’s clean energy future.

“There is no wind turbine without lithium, for example; there is no battery without critical raw materials. This is why we have agreed that we want to work on a strategic partnership on sustainable raw materials and the whole value chain.”

“We both will be working hard so that we can sign a Memorandum of Understanding very soon, to join forces. The strategic partnership will allow our companies to work together to create local added value, right here in Chile.”

President von der Leyen stated that it is important for Chile to be rewarded at both ends of the chain.

“You said it: Others take the minerals after they have been extracted and bring them to their countries and have the processing, and thus the added value there.”

“We think differently. We think it is much better for the local communities that you do not only have the mining and extraction here, in an environmentally respectful manner, but that we also have the processing process and the whole value chain here in Chile. And that is the point where we want to support you.”

“For that, we will promote the sourcing and mining that is respectful of the environment and of the livelihoods of your communities. And we will work with you to develop the whole value chain here in Chile,” she added.

Launch of ‘Fund for Renewable Hydrogen’

The EU president said green hydrogen was number one on the agenda of discussions between the two parties. In particular the launch of a Fund for Renewable Hydrogen.

Supported by ‘Team Europe’, the Fund will have an initial budget of €225 million (A$359 million).

“This is a great step forward. Because, we discussed it, the global demand for hydrogen is skyrocketing, it will increase enormously over the next years.”

The European Union has decided that by 2030, not only to produce 10 million tonnes of green hydrogen domestically, but also to import to the European Union 10 million tonnes of green hydrogen per year.

“So, we need friends that are the producers of this green hydrogen. And for us, Chile, our friend, this is one of the most important projects that we can embark on together.”

The president said the Fund for Renewable Hydrogen with Chile will support the development of a strategic industry.

“It will create good jobs here in Chile and it will boost your exports of renewable hydrogen to the world but of course also to partners, like the European Union.”