Chile’s government has identified six priority areas for new lithium extraction projects to be developed by private companies, announced Mining Minister Aurora Williams on Thursday. Starting in October, the government will consult with Indigenous communities near these areas, with proposals from private firms due by December 31.
As the world’s second-largest producer of lithium, Chile currently extracts the metal from just two companies operating in the Atacama salt flat. The government aims to enhance production through initiatives led by state-run copper giant Codelco and by attracting private investment.
About 20 expressions of interest have already been received for the six designated areas, which include five salt flats and one lagoon identified for their high potential for lithium extraction.
“We believe there will be effective competition, given that these are the areas of greatest interest,” Williams stated during a press conference.
To gain government approval for lithium extraction, private firms must demonstrate experience in the lithium value chain, possess adequate 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 aligns with Chile’s goal to develop three or four new lithium projects during President Gabriel Boric’s administration, aiming to increase lithium production by 70% by 2030.
