US Treasury Secretary Janet Yellen emphasized the importance of robust relations between the United States and Chile, particularly in the context of advancing goals related to climate and energy. Yellen’s remarks followed her visit to a lithium processing facility in Antofagasta, Chile, underscoring the significance of Chile as a key player in the electric vehicle (EV) supply chain, a crucial aspect of the Biden administration’s clean energy agenda.
During her trip, Yellen met with top officials in Santiago, including President Gabriel Boric and key ministers, recognizing Chile’s status as the world’s largest reserves of lithium, a critical component in EV battery production. As the second-largest supplier of lithium globally, Chile’s partnership is essential for countries like the United States, aiming to reduce dependency on Chinese imports in the EV sector.
Yellen highlighted concerns about the over-concentration of key supply chains, particularly in China, which poses risks of supply chain disruptions. To address this vulnerability, the Biden administration has pursued a strategy of diversifying supply chains, known as “friendshoring,” to reduce dependence on China and enhance resilience in critical sectors such as clean energy.
Chile, as a long-standing free-trade partner with the United States, stands to benefit from President Biden’s green stimulus initiatives, which could lead to increased demand for its lithium resources. Trade between the two countries has steadily grown over the years, indicating the strength of their economic ties and potential for further collaboration in the clean energy sector.
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