Lithium and renewable energy lead growth expectations in the next 10 years in Antofagasta

This is a machine translation of the original release issued in Spanish.

PRESS RELEASE from Colbún
November 19, 2024

Antofagasta residents have a very positive view of the future of solar and wind energy and lithium mining in the region, according to a study conducted by the consulting firm Criteria and Colbún, which concluded that 23% and 25% of respondents expect significant or explosive growth in solar and wind energy generation and lithium mining in the next 10 years. In addition, renewable energy generation is seen as one of the main future economic activities.

The results of the survey, conducted between late August and early September through the application of online panels to a sample of 630 cases, were presented during a discussion held in the auditorium of the Huanchaca Ruins, which was attended by the Seremi of Economy, Development and Tourism Antofagasta Region, María Teresa Véliz, the Manager of Hydraulic Projects and Water of Colbun, Carlos Briso, and the Executive Director of the Scientific Technological Park, Dr. Hernán Cáceres, the results of the study "A Horizon for Antofagasta" were analyzed, conducted by Colbún and the consulting firm Criteria and which highlights a considerable optimism of the Antofagasta residents towards the development of renewable energies.

These figures reaffirm the growing identification that is emerging in the region with renewable energies, explained Carlos Briso, manager of Hydraulic and Water Projects at Colbún, which reaffirms our company's interest and commitment to the region and its communities for the development of a renewable matrix, through well-designed and executed projects. "The generation of renewable energy is seen as one of the main future economic activities here in Antofagasta, that is why as a company we are optimistic about the deployment of projects that we want to promote, such as the expansion of the Horizonte park, the Llullaillaco substation, H2V projects and now soon the start-up of Horizonte."

Green and sustainable future

This optimism towards renewable energies is also reflected in the sense of regional identity, where solar and wind generation is the second productive activity that generates the most pride, according to 24% of those surveyed. The perception that these energies will contribute significantly to technological innovation and the quality of life of local communities is also high with 32% and 24%. "In general, the energy industry has two factors: one is the construction of the parks or sectors where investment is being developed and that requires a good amount of hiring of labor, but this is also significantly reduced when it is already in development, therefore we have a challenge there to see how we can also raise employability from the local level, it is an opportunity for sure, but we have to give it a projection in the time of sustainability," added María Teresa Véliz, Seremi of Economy, Development and Tourism Antofagasta Region.

Solar and wind power generation and lithium mining are seen as the activities with the greatest growth potential. Explosive growth is expected in renewable energy, while lithium mining is considered the main future economic activity by 36%. Matías Chaparro, Director of Public Affairs at Criteria, who was in charge of presenting these results, explained that “ Antofagastinos aspire to the diversification of the productive matrix of their Region. They continue to value copper mining, but they want to be more than just copper. Their main bets are on the growth of lithium mining and renewable energies. The latter, in addition, awaken a particular feeling of pride.”

Quality of life

Regarding quality of life, it is the perception of nostalgia that predominates among respondents. 63% believe that the quality of life was better 10 years ago, which reflects a significant concern about current and future well-being in the region.

This feeling of nostalgia and moderate pessimism towards the future (with 39% expecting the quality of life to worsen) are crucial to understanding the priorities and needs of the community. According to the study, although there is nostalgia for the past in terms of quality of life, there is strong optimism towards the future of renewable energy and its positive impact on the region. This expected growth in the renewable energy industry could be key to improving the quality of life and diversifying the economy of Antofagasta.

Economic Opportunities: Lights of Progress

The study shows an ambivalent perception of economic opportunities. 48% believe that opportunities were better 10 years ago, while only 23% think they have improved. However, 37% are optimistic about the future, expecting better opportunities in the coming decades. Hernán Cáceres, director of the UCN Science and Technology Park and Lithium R&D+i, commented that “what surprises me very pleasantly is that on the one hand there is recognition of development and improved quality of life, but that this is also seen in the future as something that will continue to improve and that generates for us, who are in the ecosystem, several goals to meet these expectations of growth, development and quality of life of people, expectations that are also seen in the area of innovation, which indicates that we must generate better initiatives that take charge of this. The people of Antofagasta are focused on development, on the potential of our region and our resources; and this is a clear call to us to take charge."

In terms of social development, there is recognition of progress in specific areas. Education, health, income and entertainment have improved significantly in 10 years, and are expected to continue improving. For example, 61% of Antofagasta residents believe that the educational offer will be much greater in 10 years.

However, despite the progress, concerns remain in areas such as cost of living, safety and the environment. 75% of respondents believe the cost of living will rise, and 65% expect an increase in crime. Pollution is also a growing concern, with 64% anticipating it will worsen.

Decentralization: Moderate Optimism

The region's ability to decide its future independently of Santiago is viewed positively. 50% of the sample believes that this capacity will increase in the next 10 years, reflecting optimism about decentralization and self-government. Meanwhile, copper mining continues to be perceived as the main generator of employment and promoter of technological innovation. The study reveals an evolving Antofagasta identity, where copper mining is no longer the only protagonist. Economic diversification and optimism towards new industries reflect a region that looks to the future with a more complex and hopeful vision.