Chile’s Indigenous communities are negotiating with mining giants Codelco and SQM for greater control over lithium extraction in the Atacama Desert, as the country races to expand production of the critical EV battery metal. The talks, set to conclude by year-end, could reshape how Chile balances economic growth with Indigenous rights—and set a precedent for global mining.
Key Developments:
Unprecedented Governance Model: Codelco (state-owned) and SQM are drafting a plan to give the Lickanantay people a formal role in decision-making, including water use and environmental oversight.
Stakes Are High: The Atacama holds 25% of global lithium supply; protests last year disrupted SQM’s operations, proving communities can halt production.
State-Led Shift: President Gabriel Boric’s push for nationalized lithium and Indigenous inclusion faces a ticking clock—his term ends in March 2026, with opposition candidates signaling less focus on community rights.
Indigenous Demands:
“We have the power to close the salt flat,” warned Yermin Basques, a Toconao leader, citing fears over water scarcity and pollution.
Communities seek binding environmental safeguards, not corporate board seats, to protect freshwater springs and grazing lands.
SQM’s past distrust lingers despite ESG audits and solar panel projects; a 2023 review found it still needed to rebuild relations.
Global Implications:
Auto giants like BMW and Tesla, which prioritize ethical supply chains, are watching closely.
Chile’s lithium output could rise 33% by 2060, but only if the Codelco-SQM joint venture (slated for mid-2025) gains community buy-in.
Latin America’s Test Case: Unlike Canada/Australia, few regional mines share power with Indigenous groups. Success here could inspire reforms from Argentina to Congo.