SQM, a Chilean lithium producer, said its board had approved procedures to increase the company's capital by up to $1.1 billion.
The capital increase proposed by the board is part of a $1.9 billion investment plan for 2021-2024 to expand production of lithium, iodine and nitrates, primarily in northern Chile, and the Holland Mountain lithium hydroxide project in western Australia, according to the company's statement.
The goal is to more than double Chile's annual lithium carbonate capacity from 70,000 tonnes to 180,000 tonnes.
The Dutch Hills project, a joint venture with Australian conglomerate Wesfarmers, is expected to produce 50,000 tonnes of lithium hydroxide a year and SQM expects to approve construction in the first quarter of next year.
The company expects lithium sales to reach nearly 25,000 tonnes in the fourth quarter, a threefold increase from the first quarter, when the coronavirus pandemic hit Demand in Asia.
Although lithium demand has barely grown this year, SQM said it would still reach 800,000 to 1 million tons in 2025 and 2 million tons in 2030, driven by the electric vehicle industry.
Demand for lithium hydroxide is expected to grow faster than that for lithium carbonate.
