Chile’s government unveiled plans on Tuesday to open over two dozen lithium salt flats for private investment, while maintaining state majority control over the significant Atacama and Maricunga deposits in lithium extraction. This strategic move, spearheaded by President Gabriel Boric’s administration, aims to enhance state influence in Chile’s thriving lithium industry, the world’s second-largest after Australia. The announcement marks a significant step towards realizing the government’s initiative to bolster state participation in the country’s lithium sector, crucial for electric vehicle battery production.
Finance Minister Mario Marcel highlighted that the initiative could potentially double Chile’s lithium production over the next decade, signaling a substantial growth trajectory for the industry. A tender process for 26 salt flats is set to commence in April, with state-run companies already initiating projects in five additional salt flats and seeking collaboration opportunities. Currently, only two companies, Chile’s SQM and U.S.-based Albemarle, extract lithium in Chile, primarily from the prolific Atacama salt flat known for its high lithium concentration.
Codelco, the state-owned copper giant, has been tasked with negotiating joint ventures with existing companies, with a preliminary agreement already reached with SQM. The government’s interest extends beyond Atacama and Maricunga to potential participation in other lithium projects without majority ownership. Environmental conservation measures will safeguard 30% of the salt flats, with specific areas yet to be identified. Notably, projects led by private entities will require approval from local indigenous communities based on their respective regions’ impact assessments. The government remains open to establishing a national lithium company as outlined in last year’s plan, with further steps pending evaluation.