Chile Advances with Lithium: These are the main definitions of the National Strategy

A little less than a year ago, we launched the National Lithium Strategy, with the aim of increasing wealth for Chile and promoting the development of an industry that provides the world with a critical mineral for the energy transition. 

In recent months, we have worked with a commitment to provide certainty, through dialogue and the participation of local communities, in a process that is transparent, professional and with a vision of the future, in order to build together a powerful national lithium industry for the present and future of Chile. 

In that sense, sectoral ministers have provided important definitions of the way in which the participation of the State and private parties will take place in the development of this important industry. 

To date, our public companies, CODELCO and ENAMI, have advanced in developing three of the leading lithium projects in Chile. On the one hand, the State-Owned Copper Company, CODELCO, has reached a memorandum of understanding with SQM to give continuity and growth to lithium production in the Salar de Atacama, with the State entering the production process in 2025 and securing a majority stake from 2031 onwards. 

At the same time, CODELCO has consolidated its position in the Salar de Maricunga with the acquisition of the Salar Blanco project, and an indigenous consultation process will soon begin to modify the Special Lithium Operation Contract (CEOL) that is being processed, a mechanism that authorizes lithium exploitation. 

For its part, the National Mining Corporation, ENAMI, has moved forward with the Salares Alto Andinos project in the Atacama Region, and an indigenous consultation process for its CEOL application is underway. In parallel, ENAMI is carrying out a drilling campaign, and will soon begin the process of searching for a partner in a transparent and competitive manner. 

These three projects, together with the Salar de Pedernales, cover approximately 49% of the surface of the country’s salt flats, and the available information shows that they have the greatest productive potential in Chile. These projects will be promoted in a joint effort by public and private companies. 

National Lithium Strategy: State and private participation 

In relation to the way in which the participation of the State and private parties will take place in the development of this important industry, the following has been established: 

1. Strategic salt flats. In both the Salar de Atacama and the Salar de Maricunga, the State, via CODELCO, will have a majority stake in the development of projects. 
2. CODELCO, in the Salar de Pedernales, and ENAMI, in the Grande, Los Infieles, La Isla and Aguilar salt flats, will be able to develop their projects by implementing public-private alliances with the flexibility that each initiative requires. In each case, the participation structure that guarantees the viability of the project and compliance with the goals of the National Lithium Strategy can be agreed with the partners. 
3. Protected salt flats. The Council of Ministers for Sustainability and Climate Change has begun studies to create a Network of Protected Salt Flats. Based on the best information available, the proposal prioritizes the environmental value of the salt flats. The network will be made up of all salt flats and saline lakes that are currently in National Parks, National Reserves and Natural Monuments, as well as all those within the protected areas provided for in Law 3 No. 21.600, which creates the Biodiversity and Protected Areas Service and the National System of Protected Areas. With the creation of this network, we will increase these areas to over 30%. We will thus be fulfilling the commitment of the National Lithium Strategy to advance the process of creating the largest protected areas in the northern part of our country. 
4. Salt flats for exploration/exploitation. For the salt flats located in the Arica and Parinacota, Tarapacá, Antofagasta and Atacama regions that are not included in the proposed network of protected salt flats and are not defined as strategic, a public and transparent call will be made to national and foreign investors to show their interest in exploring and exploiting these lithium deposits. The above call will allow the provision of special lithium operation contracts (CEOL) in order to develop these projects, which may be led entirely by private parties. In these cases, the State will establish the most appropriate mechanisms for generating income.