Chile advances lithium strategy with indigenous consultations
Chile's mining ministry has begun indigenous consultations in three of the first salt flats prioritized for the private sector, considered a key stage in the national lithium strategy.
Once completed, the government will launch tenders and award special lithium operation contracts (CEOLs) in July and August 2025.
"By September the strategy will be fully implemented," José Miguel Benavente, executive VP of development agency Corfo, said at a seminar hosted by Pontificia Universidad Católica de Chile on Tuesday.
He added that the objective is to increase current lithium production by 1.5 times by 2030.
Last year, Chile produced 271,000t of lithium carbonate equivalent, remaining the world's second largest producer behind Australia.
Dialogues with communities will begin in the Ascotán and Ollagüe salt flats in Antofagasta region, and the Coipasa salt flat in Tarapacá region, according to a press release.
Meanwhile, the processes for the other areas that are offered to private players, such as Laguna Verde, Piedra Parada and Agua Amarga in Atacama region, will be launched after conclusion of ongoing indigenous consultations related to CEOLs for the Salares Altoandinos and Maricunga projects of state companies Enami and Codelco.
Companies may register interest in a CEOL for exploration or extraction through December 31, provided that they hold at least 80% of mining concessions in the polygon of a salt flat and can prove experience in some stage of the lithium value chain in addition to financial capacity.
According to Benavente, these criteria were defined as a fast-track formula to accelerate the strategy. The aim is to have it in place before the end of the President Gabriel Boric administration in March 2026.
Despite the low lithium price, which could discourage companies from investing, Benavente presented several advantages that the local sector offers.
Opportunities
The new CEOLs will have similar conditions as the contracts of SQM and Albemarle, which operate in the Salar de Atacama, including a clause that seeks to generate added value, mandating the delivery of 25% of the lithium from a salt flat to a specialized producer.
This is similar to deals Chinese companies BYD and Tsingshan have signed and under which their subsidiaries buy lithium produced by SQM at a preferential price, in exchange for building cathode material manufacturing plants, paying royalties and providing local jobs.
In these cases, Corfo separated the mandatory delivery of lithium to 12.5% each.
Benavente highlighted that another goal of the lithium strategy will be to create a battery recycling industry and the manufacturing of stationary batteries for renewable energy, as well as help turn Chile into a refining hub for Argentine lithium.
He also said that the brines contain minerals such as boron, magnesium, potassium and zinc, which can create new business opportunities.
A challenge will be to turn these aspects into "a long-term state policy, and not something specific to this government," José Hofer, a lithium expert and partner at British consultancy SC Insights, told BNamericas recently.
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