How does lithium mining work in Chile?

Chile is a global giant in lithium extraction, operating within the lithium triangle alongside Argentina and Bolivia. The country primarily extracts lithium via an evaporation process from brine deposits located in the Salar de Atacama. Recently, the Chilean government has moved to nationalize parts of the industry, establishing joint ventures between state-owned corporations and private companies like SQM.

What we know

• Chile leads the world in extracting lithium through an evaporation process from high-concentration brines. [2]
• All lithium extracted in Chile as of 2023 originates from the Salar de Atacama. [2]
• In 2023, the Chilean government announced plans to nationalize its lithium industry, leading to a public-private joint venture called Nova Andino Litio. [2, 5]
• Chile benefits from having some of the world's cheapest production costs for lithium. [2]

Still open

• Industry analysts and future estimates vary on whether Chile's production ranking will be surpassed by Argentina and China by 2030.

Where to go next

• the bigger pictureWhat is the Lithium Triangle?
• compared withHow does Australia mine lithium differently?
• what caused itWhat are the environmental challenges of mining in the Atacama Desert?
• a case in pointHow does Sociedad Química y Minera operate?
• how it workedWhat role does Codelco play in nationalizing resources?
• an unexpected connectionHow do copper mining operations intersect with lithium state control?The state-owned copper giant Codelco was tasked with leading the nationalization negotiations and taking control of assets in the newly formed lithium joint ventures.

Sources

• [1]Lithium mining in Chile (Wikidata Q117826585) · CC0 1.0
• [2]Lithium mining in Chile · CC BY-SA 4.0
• [3]Mining in Chile · CC BY-SA 4.0
• [4]Lithium mining in Bolivia · CC BY-SA 4.0
• [5]Sociedad Química y Minera · CC BY-SA 4.0