Chile Chooses 6 Locations for Private Lithium Projects, According to Reuters

By Daina Beth Solomon and Fabian Cambero

SANTIAGO – The Chilean government has identified six key areas for new lithium extraction projects, which will be conducted by private companies, according to the country’s mining minister.

Starting in October, the government plans to engage in consultations with Indigenous communities located near these designated areas. Proposals from private firms must be submitted by December 31, as stated by Mining Minister Aurora Williams.

Chile is the second largest producer of lithium, a crucial metal for batteries, with current production concentrated in the Atacama salt flat by two companies. The government aims to increase production, focusing on efforts led by the state-owned giant Codelco, while simultaneously encouraging private investment.

Approximately 20 expressions of interest have already been received for the six priority areas, which include five salt flats and one lagoon recognized as having significant potential for lithium extraction. "We anticipate effective competition, considering these areas are of the greatest interest," Williams noted during a press conference.

To gain governmental approval for lithium extraction, private companies must demonstrate experience in the lithium value chain, possess sufficient financial resources, and hold at least 80% of the mining concessions in the proposed project area.

Finance Minister Mario Marcel emphasized that the announcement of these six priority areas keeps Chile on track to develop three or four new lithium projects during President Gabriel Boric’s administration and aims to boost lithium production by 70% by 2030. "We are taking all the necessary steps to meet these goals," Marcel affirmed.