The renewable energy boom in China and Latin America

China has also emerged as a major investor in Latin America’s key minerals industry, a treasure trove for Latin America. lithium, nickel, cobalt and rare earth element This is crucial for the development of electric vehicles, wind turbines and defense technologies.

In 2018, China Tianqi Lithium acquired a 23% share One of Chile’s largest lithium producers, Sociedad Qumica y Minera. Most recently, in 2022, Ganfeng Lithium invested in a large-scale evaporation lithium project in Argentina. $962 million. In April 2023, Brazilian President Luiz Inácio Lula da Silva and Chinese President Xi Jinping signed some 20 agreements, strengthen the already close relationship between the two countriesincluding in the areas of trade, climate change and energy transition.

China’s influence on the global clean energy supply chain continues to grow, and its influence on the energy systems of various countries continues to grow. draw international attention. But relations between China and Latin America have also become increasingly complicated as Latin American countries try to secure their own resources and a clean energy future.

In addition to international investment, Latin American countries are cultivating an indigenous, vibrant, creative, often grassroots and oft-neglected culture of energy innovation. These range from complex innovations in high-tech materials to the phenomenon of so-called frugal innovation.

Chile looks to the future

Chile is an example of how Latin America is embracing renewable energy while trying to plan for a more self-reliant future.

new geothermal, solar and the wind Some projects are built with Chinese support, but not all Putting Chile well ahead of its 2025 renewable energy targets. about one third The country is now powered by clean energy.

But much of the jackpot and China’s interests are buried in the Chilean Atacama Desert, which is home to the world Largest Lithium Reserve. Lithium is a silvery-white metal that is critical to the production of the lithium-ion batteries that power most electric vehicles and utility-scale energy storage.Countries around the world are competing for lithium resources, and the Chilean government is determined to maintain control over its reserves, currently about Half of the planet’s known supply .

In April 2023, the President of Chile announced National Lithium Strategy Ensure partial state ownership of some future lithium development projects. The move has not yet been approved, file a complaint This can slow down production.

However, the government’s goal is to Increase Lithium Production Profits All while enhancing environmental protection and sharing more wealth with the country’s citizens, including local communities affected by lithium projects.Latin America has seen its resources It’s sold out Previously, Chile does not intend to lose its natural values ​​this time.

Learn from foreign investors

Developing its own renewable energy industry has been a priority for Chile for more than a decade, but the road has sometimes been bumpy.

In 2009, the government started to establish national and international Centers of Excellence International Center of Excellence For research in strategic areas such as solar energy, geothermal energy and climate resilience.Invite foreign research institutions to co-fund, such as European influential research institutions Fraunhofer Institute and francis ENGIELab, set up a branch in Chile and carry out applied research.the latest is a Center for lithium production using solar energy.

The government hopes the centers will partner with local businesses and research centers to transfer knowledge to nourish the local innovation ecosystem. However, reality has not met expectations. Foreign agencies bring in their own trained personnel. Insufficient financing has been a major problem, with the exception of the recently established Lithium Institute, officials told us.

Startup Incubators and Frugal Innovation in Chile

While big projects get the headlines, so much more is under the spotlight.

Chile has one of the largest public incubators and seed accelerators in Latin America, Chilean startups. It has helped several local startups deliver important innovations in food, energy, social media, biotech, and other fields.

Typically in South America, such innovations are born and developed in a context of scarce resources and technological, financial and material constraints. This frugal innovation emphasizes sustainability while dramatically reducing costs.

For example, independent start-ups in Chile reborn electric motor Developed a business converting an old fleet of diesel buses into fully electric buses. Reborn was founded in 2016 when Chile’s national EV market was still in its early stages and China’s BYD ramped up its use of electric buses in local cities.

The buses converted by Reborns are not only technologically advanced, but also much cheaper than similar buses in China. BYD’s new electric bus costs about $320,000, while Reborn’s modified version costs about half that, at about $170,000.The company also received funding to develop a prototype Running Mining Vehicles on Green Hydrogen.

Tiny, ultra-cheap electric car developed by Bolivian start-up Quantum motor industry It’s another example of frugal innovation in the EV space. The startup aspires to bring electric vehicles broadly to the Latin American population. It offers the smallest EV that can be plugged into a standard wall outlet. The car costs about $6,000 and has a range of about 34 miles (55 kilometers) per charge.

Finel is another promising Chilean company providing clean energy solutions with a focus on solar projects. Its projects include solar system installations, electric vehicle technology, and the use of blockchain to improve renewable energy management in Latin America. Many of these projects are highly complex and technologically advanced projects that have found markets overseas, including in Germany.

Looking ahead to green hydrogen

Chile is also dabbling in another frontier of clean energy.Harness its abundant solar and wind energy Producing Green Hydrogen Exports as an alternative to fossil fuels have become a top priority for the government.

the government is developing a public-private partnership Chile’s hydrogen production on an unprecedented scale and promises to cover 30% of forecast $193 million in public and private investment, funded in part by its lithium and copper production.There have been issues surrounding the partnership, including Chile’s lack of experience managing such a large project and concerns about environmental impact.Government claims Chile’s green energy production can eventually compete with its mining industry.

Latin America, with its abundance of hydropower and sunshine, has met A quarter of energy needs Renewable energy is almost double the global average. Chile and its neighbors expect these numbers to only increase.

Zdenka Meslikova Is a clean energy innovation postdoctoral scholar, tufts university and Nathaniel Dalton Thornton is a climate policy research associate, tufts university.

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