Chile is enhancing its position as a global leader in lithium production by designating six additional sites for exploration, bringing its total to 12 priority areas. This move comes as part of the country’s broader strategy to meet the growing demand for lithium, driven by the electric vehicle (EV) and renewable energy industries.

New Lithium Exploration Areas

On December 5, Chile’s Ministry of Mining announced the new exploration sites in the Tarapacá and Antofagasta regions. The areas selected for lithium exploration include:

• Hilaricos and Quillagua Norte in Tarapacá.
• Quillagua Este, Quillagua Sur, Maria Elena Este, and Cerro Pabellon in Antofagasta.
  These sites offer opportunities for polymetallic mining, with the potential for lithium extraction from clays and geothermal sources, unlike traditional lithium production from salt flats. This diversification in extraction methods is aimed at expanding Chile’s lithium production capacity while ensuring sustainability.

Tendering Process and Sustainability Efforts

Chile plans to issue special lithium operating contracts (CEOLs) for each of the 12 priority sites. The tendering process for the first five areas is set to begin in early 2025. Companies interested in bidding must:

• Hold at least 80% of the mining concessions for the specified deposit.
• Submit background information by the end of January 2025 to qualify for a simplified process.

The government also emphasized that indigenous consultations will be conducted for each of the sites before the tendering process begins, ensuring that the development of the lithium sector aligns with sustainability and community engagement standards.

Chile’s commitment to responsible development aims to balance its critical mineral ambitions with environmental and social considerations.

Strengthening Chile’s Lithium Market Position

With 36-40% of the world’s lithium reserves, Chile remains one of the largest producers of lithium globally. By expanding exploration efforts and diversifying extraction methods, the country is solidifying its leadership in the market, especially in the face of soaring demand for electric vehicles and renewable energy technologies.