On Saturday, Treasury Secretary Janet Yellen anticipated rising demand for lithium, a key component in electric vehicle batteries, will boost U.S. imports from Chile in the coming years.
After meeting with President Gabriel Boric, Economy Minister Mario Marcel, and business executives in Santiago, Yellen visited U.S. lithium company Albemarle (ALB.N), opens new tab in northern Chile on Saturday.
After touring the Albemarle site in La Negra, 30 minutes southeast of Antofagasta, she told reporters that clean energy demand may produce $3 trillion in global investment opportunities by 2050.
She said expanding U.S.-Chilean ties will benefit both countries, boost energy security, and help accomplish crucial climate goals, noting that the U.S. Inflation Reduction Act aims to minimize overdependence on vital goods, particularly critical minerals, from China.
The U.S. wants to increase local manufacturing and identify other lithium supplies for electric vehicles, Yellen added. "We want to certainly acquire minerals from our free trade partners, especially a country like Chile that is producing with great environmental sensitivity and has its own strong climate agenda," Yellen.
She said lithium purchases will likely boost U.S. imports from Chile and its share of Chilean exports. China is Chile's top export market. "I can't tell you numbers, but I imagine that we will be expanding substantially our purchases from Chile," stated.
Yellen's visit to Chile is part of "friendshoring" to diversify U.S. supply chains by strengthening connections with allies like Chile. Chile is the world's largest copper and second-largest lithium producer, which Washington values for the green transition.
On Friday, she told reporters that the U.S. intended to boost commerce with Chile, not discourage it from trading with China, its major trading partner, saying, "It's not a competition."
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