Chile's President Gabriel Boric announced his intention to create a state-owned company to control the production of lithium in the country. Chile is the world's second largest supplier of lithium, which is widely used in electric vehicle batteries. Nationalization could create problems for electric vehicle manufacturers, who are already struggling to get the materials they need. Some countries have already banned the export of lithium and nickel, protecting their natural resources. The nationalization of the lithium industry in Chile could contribute to the sustainable development of the country's economy. Existing contracts with lithium producers SQM and Albemarle will not be terminated, but the government hopes the companies will be open to government participation. Lithium prices were not affected directly by the news as they have already declined due to declining demand for electric vehicles in China.
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