{"id":60074189,"date":"2025-03-25T17:26:53","date_gmt":"2025-03-25T17:26:53","guid":{"rendered":"https:\/\/dialogue.earth\/?p=60074189"},"modified":"2025-03-27T15:54:40","modified_gmt":"2025-03-27T15:54:40","slug":"chile-has-a-plan-to-boost-lithium-mining-can-it-do-it-sustainably","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/chile-has-a-plan-to-boost-lithium-mining-can-it-do-it-sustainably\/","title":{"rendered":"Chile has a plan to boost lithium mining. Can it do it sustainably?"},"content":{"rendered":"\n

In 2023, Chile\u2019s President Gabriel Boric presented<\/a> the country\u2019s National Lithium Strategy. The plan establishes a leading role for the state when it comes to exploiting the in-demand mineral, alongside an aim to develop a sustainable industry, while also increasing the country\u2019s income.<\/p>\n\n\n\n

As of 2021, Chile accounted for approximately 44%<\/a> of global lithium reserves, followed by Australia (22%), Argentina (10%) and China (7%). But aside from the Salar de Atacama in the north, most of Chile\u2019s salt flats are yet to be exploited \u2013 though the country is already second in the world for lithium production, behind Australia.<\/p>\n\n\n\n

As part of Chile\u2019s strategy, the government has established lots for 26 salt flats<\/a> that will be opened up to exploitation by domestic and international companies, through the award of special lithium operating contracts (CEOLs).<\/p>\n\n\n\n

In January, Chile\u2019s Ministry of Mining started the CEOL grant process for six<\/a> of these salt flats. The process for consulting Indigenous populations living in proximity to these areas has already begun<\/a>, for the Ascot\u00e1n and Ollag\u00fce salt flats in the northern Antofagasta region, and for the Coipasa salt flat in Tarapac\u00e1. Meanwhile, in the salt flats that have been reserved for state exploitation, such as Maricunga, Salares Altoandinos and Atacama \u2013 where production is to be expanded<\/a> \u2013 plans are also advancing, with consultations underway.<\/p>\n\n\n\n

The government and private sector are also making progress on the strategy\u2019s sustainable development elements: a network of protected salt flats was announced<\/a> in March 2024, while in January this year, the National Lithium and Salt Flats Institute (Ilisa) was inaugurated<\/a>. The government says the institute will \u201censure the sustainable development of Chile\u2019s lithium resources and salt flats\u201d.<\/p>\n\n\n\n

In parallel, many of the companies interested in lithium exploitation (Eramet<\/a>, Enami<\/a>, the Chemical and Mining Society (SQM<\/a>), Albemarle<\/a> and Grupo Err\u00e1zuriz<\/a>) have stated they intend to use direct lithium extraction (DLE<\/a>). These technologies aim to reduce the environmental impacts of lithium mining, by replacing the traditional solar evaporation extraction method and thus minimising water consumption.<\/p>\n\n\n\n

Comparing lithium extraction methods<\/span>
\n

Lithium<\/a> is mostly extracted from a mineral-rich brine, which is found approximately 10 metres below briny lakes in high-altitude salt flats.<\/p>\n\n\n\n

Evaporation extraction:<\/strong> Brine is pumped to an evaporation pool at the surface, where it eventually becomes a mud containing manganese, potassium, borax and lithium salts. The mud is then moved to another open-air evaporation pool. After 12-18 months, lithium carbonate can be extracted, which is the main raw material for lithium-ion batteries. This process is extremely water-intensive.<\/p>\n\n\n\n

Direct lithium extraction (DLE): <\/strong>This method is similar to evaporation extraction, but the barren brine is re-injected into the salt flats once its lithium has been extracted. This means less water is removed during extraction. Historically, DLE has been the slower and costlier extraction method, but some commentators<\/a> expect<\/a> technological improvements to ameliorate these elements.<\/p>\n<\/div><\/div><\/div>\n\n\n\n

In consulting various experts and stakeholders, however, Dialogue Earth has noted strong misgivings as to whether Chile\u2019s lithium sector can develop without significant environmental impacts.<\/p>\n\n\n\n

The challenges<\/h2>\n\n\n\n

The only mining companies currently operating in the Salar de Atacama are Chile\u2019s SQM<\/a> and US-based Albemarle<\/a>. These companies\u2019 operations reportedly require more than 63 billion<\/a> litres of brine every year (almost 2,000 litres per second) from below the desert. The Chilean state mining company, Coldeco, is currently preparing to enter the Salar de Atacama to boost the salt flat\u2019s output, in partnership with SQM \u2013 a deal that has faced objections<\/a> from China\u2019s Tianqi Lithium, a significant stakeholder in SQM.<\/p>\n\n\n\n

Everything happens silently and over a long period of time, like a cancer in the blood<\/blockquote>Jaime Ale\u00e9, University of Chile electrical engineer<\/cite><\/div><\/div>\n\n\n\n

Jaime Ale\u00e9, an electrical engineer at the University of Chile, has been working for more than 10 years on issues related to the Chilean lithium industry. Comparing it to the mining of copper \u2013 Chile\u2019s top export, and of which it is the world\u2019s leading producer \u2013 Ale\u00e9 tells Dialogue Earth \u201cthe impact is more underhand\u201d. The engineer is alluding to lithium mining\u2019s comparative lack of vociferous techniques, like using dynamite to create holes, or transporting materials on 100-tonne trucks. \u201cEverything happens silently and over a long period of time, like a cancer in the blood.\u201d<\/p>\n\n\n\n

The impact of the lithium industry may appear less drastic than open-cast mining, but companies still face significant environmental challenges.<\/p>\n\n\n\n

The longer-term negative impacts of intensive water abstraction upon local ecosystems, which have been reported<\/a>, as well as effects on cultural and spiritual practices, have raised concerns among experts and communities. \u201cOur culture is living with the aggression of lithium extraction because of the issue of our waters, which mean survival for us,\u201d says Sonia Ramos, an environmental activist and community leader from Atacama. <\/p>\n\n\n\n

In response, the government has developed several strategies to mitigate impacts. One of the main strategies has been to propose the use of DLE.<\/p>\n\n\n\n

DLE has yet to be used on a large scale in Chile, but several companies using its methods in other parts of the world are now developing projects for the country. They include China\u2019s Sunresin<\/a>. \u201cIn China, the company has built plants with capacities ranging from 2,000 to 20,000 tonnes per year,\u201d says Emilio Bunel, an engineering professor at the Pontifical Catholic University of Chile and DLE consultant. He adds that, in total, Sunresin\u2019s projects produce around \u201c80,000 tonnes of lithium carbonate using this technology\u201d every year, mostly in China. Bunel says the company has a pilot plant in northern Chile.<\/p>\n\n\n\n

<\/div>
Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

Ingrid Garc\u00e9s, an academic researcher at the University of Antofagasta, is concerned about DLE technologies. She acknowledges that DLE promises greater efficiency and reduced environmental harm, but tells Dialogue Earth there is still a need for caution: \u201cThe implementation of these technologies must be accompanied by a rigorous assessment of their socio-environmental impacts, to avoid repeating the mistakes of the past.\u201d<\/p>\n\n\n\n

The government has stressed<\/a> that its new national lithium institute (Ilisa) will play a crucial role in the development of sustainable extraction technologies. For example, Ilisa will conduct research to characterise the salt flats in question, which can inform sustainable practices. Meanwhile, it will also work to improve the recovery of materials along the lithium value chain, for example, through lithium battery recycling.<\/p>\n\n\n\n

Dialogue Earth consulted Ver\u00f3nica Molina, an oceanography and microbial ecology expert at the University of Playa Ancha in Chile\u2019s port city of Valpara\u00edso. Molina is also an Ilisa board member. She says many questions are expected to be answered by the institute, but it is important to \u201cmake it transparent that this body does not provide answers to all the challenges facing the industry\u201d. She is optimistic about the possibility of joining interdisciplinary efforts to achieve more sustainable mining, but concedes it \u201csounds very difficult from a scientific point of view\u201d.<\/p>\n\n\n\n

Molina describes the creation of Ilisa as \u201cunprecedented\u201d. Overall, however, she remains cautious: \u201cSo far, there are only certain guidelines for the start-up, and we are awaiting the construction of the site in Antofagasta.\u201d<\/p>\n\n\n\n

The Ilisa board is currently composed of six members. The government says<\/a> an additional member to represent Indigenous peoples will be elected.<\/p>\n\n\n\n

Ancestral inhabitants<\/h2>\n\n\n\n

As the National Lithium Strategy envisages further exploitation of Chile\u2019s salt flats, several Indigenous consultations are underway in the north of the country. Here, many areas earmarked for extraction are in close proximity to \u2013 and, in some cases, overlap with \u2013 communities\u2019 ancestral lands.<\/p>\n\n\n\n

In the case of the Salar de Atacama expansion, members of the local Atacame\u00f1o community (who chose to withhold their identities for fear of reprisals) confirm that several consultations are underway. These include one coordinated<\/a> by Corfo, the Chilean government agency that promotes economic development.<\/p>\n\n\n\n

Leydi Sandon, a member of the Coyo \u2013 an Indigenous community living near the basin of the Atacama salt flat \u2013 says it has been extremely exhausting to participate in multiple Indigenous consultations simultaneously. She strongly believes this situation is a clear violation of rights. Sandon says there is an urgent need for \u201carbitration or an independent observer\u201d to ensure these processes are transparent and fair.<\/p>\n\n\n\n

\"Gabriel<\/div>
Chile’s President Gabriel Boric meets the Council of Atacame\u00f1o Peoples, December 2024. He was there to \u201clisten to their concerns\u201d and \u201cestablish collaborative work paths\u201d in regards to Chile’s National Lithium Strategy (Image: Ximena Navarro \/ Direcci\u00f3n de Prensa, Presidencia de la Rep\u00fablica de Chile<\/a>)<\/div><\/div><\/div><\/div>\n\n\n\n

Ercilia Araya leads the Colla Pai Ote Indigenous community, whose lands are near the Maricunga salt flats. She has been critical of the Indigenous consultation process carried out by the state\u2019s copper-mining company, Codelco. She alleges a \u201clack of transparency\u201d and a \u201cfailure to fulfil commitments\u201d. Araya adds that her community cannot support Codelco\u2019s CEOL if it continues to threaten water supplies \u201cvital for our existence\u201d, such as the nearby Santa Rosa Lagoon.<\/p>\n\n\n\n

A 2024 Codelco press release<\/a> quoted the country\u2019s mining minister, Aurora Williams, stating the consultations at Maricunga were proceeding in accordance with legal provisions. During an earlier visit to the salt flat at the beginning of consultations, Codelco president M\u00e1ximo Pacheco had pledged<\/a> to \u201cbuild trust, strengthen ties, and maintain a fluid information channel\u201d with communities.<\/p>\n\n\n\n

More Indigenous consultations are expected to be announced in the first half of this year. They will cover projects in the salt flats of Agua Amarga, Piedra Parada and Laguna Verde, all in the Atacama region.<\/p>\n\n\n\n

Stabilising the boom<\/h2>\n\n\n\n

In 2022, Chile experienced a lithium boom<\/a>, when the price of lithium carbonate reached USD 80,000 per tonne. That year, lithium became Chile\u2019s leading<\/a> export after copper, generating USD 8.5 billion and becoming a key component of the economy. And between 2012 and the third quarter of 2023, Chile collected more than USD 7.3 billion<\/a> in rental income from mining properties (73% via SQM and 27% via Albemarle). Currently, however, the lithium price is below USD 10,000<\/a> per tonne \u2013 although Bunel believes it will bounce back again, towards the USD 20,000 mark.<\/p>\n\n\n\n

\"man<\/div>
A worker walks through Chilean company SQM\u2019s lithium carbonate plant in the Atacama Desert, October 2022. That year, Chile experienced a lithium boom during which the material became Chile\u2019s top export after copper (Image: Lucas Aguayo Araos \/ dpa \/ Alamy)<\/div><\/div><\/div><\/div>\n\n\n\n

\u201cCompanies will not be able to generate that kind of money again,\u201d says Bunel, referring to 2022. He says the focus should be on optimising existing operations, not expansion. This could be achieved in the Atacama and Maricunga salt flats by applying DLE, he argues. Bunel claims this would \u201cimprove efficiency and double production, without the need to increase extraction in multiple small projects \u2013 which together will not equal Atacama\u2019s production\u201d. He advises a review of the current strategy, especially considering current price estimates.<\/p>\n\n\n\n

Nonetheless, the awarding of CEOL contracts for prioritised salt flats is progressing. The companies chosen to develop them will be announced at the end of March. Ra\u00fal del Barrio, executive director of Chile\u2019s RJR Salar mining company, tells Dialogue Earth that Err\u00e1zuriz, a Chilean business group, alongside<\/a> the Canada-based Lithium Chile, will be awarded the Coipasa salt flat. Meanwhile, for the Ascot\u00e1n salt flat, he reports that Codelco, Quiborax and Eramet have formed an alliance<\/a> for the tender.<\/p>\n\n\n\n

<\/a>Jaime Ale\u00e9 remains critical of the National Lithium Strategy. He argues its initial focus on minimising environmental impacts has quickly become about making money. As a result, he claims, many environmental impacts are being ignored or denied. He is convinced Chile\u2019s current approach to lithium exploitation \u201cwill continue, without significant changes\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

The lithium-rich country is promoting a national strategy for the in-demand mineral and backing alternative extraction methods, but environmental concerns persist<\/p>\n","protected":false},"author":50000535,"featured_media":60074199,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[18133,566,20000237],"hashtags":[],"country":[50000024],"class_list":["post-60074189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-lithium","tag-mining","tag-sustainable-development","country-chile"],"acf":[],"yoast_head":"\nChile has a plan to boost lithium mining. 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A lithium feed pump pumps at a lithium mine in the Atacama Desert. Sociedad Quimica y Minera de Chile (SQM) is expanding its mining operations to meet rising global demand for lithium carbonate, the main ingredient in the manufacture of rechargeable batteries, increasingly for electric vehicles. Credit: Lucas Aguayo Araos\/dpa\/Alamy Live News"},{"@type":"BreadcrumbList","@id":"https:\/\/dialogue.earth\/en\/business\/chile-has-a-plan-to-boost-lithium-mining-can-it-do-it-sustainably\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/dialogue.earth\/en\/"},{"@type":"ListItem","position":2,"name":"Chile has a plan to boost lithium mining. 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