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3/2/2024

Remarks by Secretary of the Treasury Janet L. Yellen at Albemarle Corporation’s Lithium Processing Facility in Antofagas…

Remarks by Secretary of the Treasury Janet L. Yellen at
Albemarle Corporation’s Lithium Processing Facility in
Antofagasta, Chile
March 2, 2024

As Prepared for Delivery
Thank you for being here. Iʼm grateful for the warm welcome Iʼve received in Chile over the
past two days. Iʼve had a very productive trip so far, including meeting with President Boric,
Minister of Finance Marcel, and Central Bank Governor Costa to discuss the United States and
Chileʼs shared priorities.
Iʼm glad to end my trip to Chile by visiting this lithium conversion plant owned by an American
company. Itʼs a fitting place to talk about the strong economic relationship between the
United States and Chile and the future our two countries are jointly building.

U.S.-CHILE ECONOMIC RELAT IONS
Last year, the United States and Chile marked the bicentennial of our diplomatic relations.
This year, we celebrate the twentieth anniversary of the U.S.-Chile Free Trade Agreement,
which fuels mutual economic benefit. U.S. exports to Chile created over 70,000 American jobs
in 2021 and the U.S. invested nearly $30 billion in Chile in 2022.
Just last December, extensive cooperation between the U.S. Treasury Department and Chileʼs
Ministry of Finance culminated in a comprehensive bilateral tax treaty between the U.S. and
Chile entering into force. This is the first such treaty signed by the U.S. to enter into force in
over a decade. It will further reduce tax-related barriers to cross-border investment,
facilitating even stronger economic ties between our countries.
In my remarks today, Iʼd like to focus on one key aspect of the U.S.-Chile economic relationship
that is only becoming more important: our work to build green and resilient supply chains. The
United States is lowering energy costs, advancing our energy security, and combatting
climate change through both investing at home and strengthening relationships with key
partners like Chile. We are eager to build on this foundation going forward.
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Remarks by Secretary of the Treasury Janet L. Yellen at Albemarle Corporation’s Lithium Processing Facility in Antofagas…

OUR PART NERSHIP ON ENERGY SECURIT Y AND CLIMAT E
President Biden and I have been focused on advancing our energy security. When energy
prices are volatile, families around the world, including in the U.S. and Chile, shoulder the
burden of high costs and unpredictability. These shocks add significant financial stress to
households trying to make ends meet and to businesses trying to thrive and scale.
Weʼve coordinated with our allies and partners to mitigate external price shocks and keep
costs down. When Russia invaded Ukraine, we responded quickly and decisively. At home, we
released 180 million barrels from the Strategic Petroleum Reserve. Over time, record domestic
oil and natural gas production also addressed our immediate needs. With a coalition of
partners, we put in place a price cap on Russian oil. The price cap has deprived Russia of
revenue while keeping energy markets well-supplied. Energy prices have declined, with gas
now down around $1.70 per gallon from its high in June 2022 and global crude oil prices down
around $40 per barrel since then.
Around the world, the increasing frequency and severity of climate-related events also
undermines energy security and has far-reaching economic impacts. Last month, California
witnessed record floods, with several counties under a state of emergency. At the same time,
devastating wildfires swept through Chile, destroying whole neighborhoods and leading to
tragic loss of life. Climate change poses a threat to all of us. While we remain committed to
pursuing short-term actions to lower energy costs, in the longer term, itʼs the transition to
clean energy that o ers a pathway to both greater energy security and combatting the
devastating e ects of climate change.
In the United States, the Bipartisan Infrastructure Law and the Inflation Reduction Act are
helping drive progress. The Inflation Reduction Act provides tax credits to help American
households make energy-e iciency improvements, allowing Americans to shrink and stabilize
their energy bills right away. Itʼs also reinvigorating American manufacturing—creating wellpaying jobs and fueling innovation. Companies have announced over $600 billion in
manufacturing and clean energy investments since the start of this Administration. Weʼre
seeing investments in places like Bessemer City, North Carolina, where I travelled this fall to
see our countryʼs largest lithium hydroxide production facility. The cutting-edge lithium
products being produced there will power Americaʼs electric vehicle supply chain.
And our investments at home wonʼt only impact energy production in the United States.
Because itʼs now cheaper to produce clean energy, production will increase and costs will drop
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Remarks by Secretary of the Treasury Janet L. Yellen at Albemarle Corporation’s Lithium Processing Facility in Antofagas…

more. This will make clean energy even more a ordable—not only for Americans, but for
Chileans and others around the globe.
But we know that the United States canʼt bolster our energy security or advance our climate
agenda alone.
Parts of our key supply chains, including for clean energy, are currently overconcentrated in
China. This makes America more vulnerable to shocks in China, or whatever country dominates
production, from natural disasters to macroeconomic forces, to deliberate actions such as
economic coercion. So alongside investing at home, weʼre pursuing an approach Iʼve called
friendshoring: bolstering our supply chains through strengthening our relationships with our
key partners and allies.
Chile is one of those key partners. As we accelerate toward a clean energy future, our already
strong economic relationship is poised for further strengthening.
Copper is key to the transition to net zero, from electric vehicles to o shore wind turbines to
transmission networks. If the world aims to achieve net-zero by 2050, demand for copper is
projected to double by 2035. And Chile leads global production, with copper its top export.
Chile is also the worldʼs second biggest producer of lithium, with 30 percent of global market
share and the largest lithium reserves on earth. Like for copper, demand for lithium is
expected to grow due to its key role in energy storage, such as for EV batteries. In fact,
lithium demand is projected to more than triple by 2030.
As the United States and other countries grow our EV markets and invest more and more in
renewables, Chile will play a key role. Our Free Trade Agreement with Chile means that critical
minerals from Chile help vehicles qualify for the Inflation Reduction Actʼs Clean Vehicle Tax
Credit, boosting industries in both Chile and America.
Where we are today is a perfect example of our mutually beneficial economic ties. Albemarle is
headquartered in North Carolina and has a production site in Salar de Atacama and this
conversion plant in La Negra. The company employs more than 1,000 workers in Chile, over 75
percent of whom are from the region. It also recently launched an apprenticeship program to
expand pathways into these jobs. Our ties with Chile increase our energy security at home,
create economic opportunity in both our countries, and bring us all closer to achieving our
climate goals.
In the medium- to long-term, weʼll see shi s as we ramp up lithium production in the United
States. Albemarle plans to reopen its lithium mine in North Carolina by 2030, capitalizing on
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Remarks by Secretary of the Treasury Janet L. Yellen at Albemarle Corporation’s Lithium Processing Facility in Antofagas…

Bipartisan Infrastructure Law funds and IRA tax credits. In Nevada, construction for a mine
and processing facility has been underway since last March. But the global need for clean
energy means thereʼs ample demand for both Chile and the U.S. to meet it. Researchers have
estimated that there are over $3 trillion in global investment opportunities associated with
the transition to net zero each year between now and 2050. President Biden and I are
dedicated to further shoring up our bilateral cooperation and enabling both the U.S. and Chile
to capitalize on these opportunities.

CHILEʼS CLIMAT E AGENDA
I am also very impressed by Chileʼs own ambitious climate agenda. Chile is leading the way on
sustainable finance as the regionʼs first sovereign green bond issuer and the worldʼs first
sovereign sustainability-linked bond issuer. It has one of the worldʼs greenest grids.
Approximately sixty percent of its power comes from zero-carbon sources, including over a
quarter generated by wind and solar.
Chile has also put in place tax support for EV buyers and aims to reach 100 percent in EV sales
by 2035. And it may well lead the way in green hydrogen, with more than 40 green hydrogen
projects underway.
All of this makes Chile exactly the kind of partner we need in the transition to clean energy.

CONCLUSION
Indeed, the actions the United States and Chile are each taking—and those that weʼre taking
together—are driving progress. This year, the U.S. will continue investing at home and in
supply chains that benefit both the U.S. and Chile. And around the world, other e orts—from
Just Energy Transition Partnerships to support emerging markets to Chileʼs leadership—will
bring us closer to the future we need for the generations to come.
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