Chile Moves to Fast-Track New Lithium Deals Under National Strategy

Chile moves to fast-track new lithium deals as it pushes to expand output under its national lithium strategy. The Mining Ministry will submit five new lithium contracts to the national comptroller in March. Officials aim to advance approvals before President Gabriel Boric leaves office.

The contracts cover key salt flats, including Salar de Ascotán, Quillagua Sur, and Salar de Agua Amarga. Regulators continue reviewing other projects such as Quillagua Norte and Quillagua Este. Authorities previously blocked two contracts due to legal deficiencies in award criteria.

Chile Moves to Fast-Track New Lithium Deals to Lift Output

Chile moves to fast-track new lithium deals to support its 2023 national lithium strategy. The government seeks to raise annual lithium output from 280,000 tonnes in 2024 to 430,000 tonnes by 2034. Officials want stronger state oversight while maintaining private sector participation.

The dispute centers on Special Lithium Operation Contracts, known as CEOLs. These contracts govern how private firms apply for lithium rights. However, regulators ruled that only the President can define award requirements.

This framework differs from partnerships involving state-owned giants like Codelco and Enami. Those groups collaborate with global miners such as SQM and Rio Tinto. As a result, Chile maintains a hybrid lithium development model.

Market Share Pressure and Strategic Partnerships

Chile moves to fast-track new lithium deals as it tries to reclaim lost global market share. Although Chile ranks as the second-largest lithium producer, rivals have expanded faster. Industry leaders argue that regulatory rigidity slowed project development.

Manuel Viera, president of the Chilean Mining Chamber, urged reforms to attract investment. He highlighted Nova Andino Litio, a joint venture between Codelco and SQM, as a positive step. Meanwhile, Salares Altoandinos and the Maricunga partnership with Rio Tinto await further approvals.

Chile holds more than 40 untapped salt flats with strong geological potential. However, the Mining Code reserves lithium for the state. Consequently, private investors face structural limits despite high-quality reserves.

Chile moves to fast-track new lithium deals at a decisive moment for battery supply chains. Global EV demand continues to drive lithium consumption growth. Chile’s success depends on balancing state control with investor confidence. If policymakers streamline CEOL approvals, the country could restore competitiveness. Otherwise, faster-moving producers may continue capturing market share.

SuperMetalPrice Commentary:

Chile moves to fast-track new lithium deals at a decisive moment for battery supply chains. Global EV demand continues to drive lithium consumption growth. Chile’s success depends on balancing state control with investor confidence. If policymakers streamline CEOL approvals, the country could restore competitiveness. Otherwise, faster-moving producers may continue capturing market share.