Chile opens 26 lithium salt flats to private companies - MINING.COM

Atacama and Maricunga, the two salt flats deemed strategic and as such reserved to state-controlled partnerships, host a combined lithium potential of 10.8 million tonnes, corresponding to 64% of global reserves.

Nine other salt flats could contribute 3.3 million additional tonnes, according to expert José Cabello, head of consulting firm Mineralium.

Officials also announced the state will create a network of protected salt flats, which will not be touched as they are located in National Parks and other environmentally critical protected areas.

Juggling act

Chile is the world's top copper producer and the second-largest producer of lithium after Australia. Both metals are considered vital commodities for the global transition from fossil fuels to renewable energies.

Only two companies currently extract lithium in the country - Chile's SQM and US-based Albemarle - both in the Atacama salt flat.

The government is trying to juggle securing state control of the industry while attracting more private capital, protecting the environment and moving further down the value chain. Last year, it tasked state-owned copper producer Codelco to negotiate partnerships with each company.

The copper giant has already reached a preliminary agreement with SQM, which is set to last until 2060, but talks with Albemarle are ongoing. Earlier this month, Codelco also finalized the $254 million acquisition of Australia's Lithium Power International, which handed the company the Maricunga lithium project, located in the namesake salt flat.

Global demand for lithium, according to the Chile's own projections, will quadruple by 2030, reaching 1.8 million tonnes. Available supply by then is expected to sit at 1.5 million tonnes. 

Lithium carbonate exports represented 5.3% of total Chilean shipments in 2023, down from 8.4% the previous year.