Chile’s Government Prioritizes Lithium Extraction

By Daina Beth Solomon and Fabian Cambero

SANTIAGO (Reuters) – Chile’s government has selected six priority areas for new lithium extraction projects to be led by private companies, according to Mining Minister Aurora Williams on Thursday.

In October, consultations with Indigenous communities near those areas will begin, and proposals from private firms will be due by December 31.

Chile, the world’s second-largest producer of lithium, currently produces the key battery metal through just two companies in the Atacama salt flat. The government is working to enhance production through efforts led by state-run copper giant Codelco and by attracting private investment.

Authorities in Chile have received about 20 statements of interest for the six identified priority areas, which consist of five salt flats and one lagoon, recognized as high potential for lithium extraction.

“We believe there will be effective competition, given that these are the areas of greatest interest,” Williams said at a press conference.

To obtain government approval for lithium extraction, private firms need experience in the lithium value chain, sufficient financial resources, and must hold at least 80% of the mining concessions in the proposed project area.

Finance Minister Mario Marcel indicated that the announcement of the six priority areas aligns with Chile’s aim to develop three or four new lithium projects during President Gabriel Boric’s administration and to increase lithium production by 70% by 2030.

“We’re taking all the necessary steps to meet these goals,” Marcel stated.