Government of Chile will allocate nearly US$ 7 million to investigate lithium and salt flats

The Government of Chile announced this Tuesday that it will allocate nearly US$ 7 million over three years to investigations linked to the lithium and the environment in which it is exploited in the country, the salt flats, projecting the award of the amount by mid-2024 to projects that work on productive, environmental and social issues regarding the strategic key mineral for electromobility.

“The more we know about the salt flats, the communities that surround them, and the technologies for their extraction and use, the faster and easier we can move towards sustainable lithium production.“said the Minister of Science, Aisen Etcheverry.

Through the contestResearch Rings in Lithium and Salt Flats”, the funds from the Sustainable Productive Development Program will be delivered to “primary investigations” in areas of knowledge that, according to Etcheverry, “must be deepened with greater urgency”.

In line with the National Lithium Strategy drawn up by the government of the Chilean president, Gabriel Boric, to date there is an inter-ministerial effort to shape the future Institute of Technology and Research in Lithium and Salares, while this competition will hold a maximum of 10 projects that move in that direction.

“We have little knowledge and, therefore, a great space to contribute to our understanding of these very fragile, very valuable ecosystems, and this will also complement the pillar that it was our turn to lead, which is the part of protection and creation of the Salt Flats Network“said the Minister of Environment, Maisa Rojas.

Chile is the world’s second largest producer of lithium – essential for electromobility – behind Australia, but Argentina is close behind and could overtake it in the coming years.

In 2022, Chili exported US$6,877 million of lithium carbonate, which represents an increase of 777% compared to 2021, according to the Central Bank.

There are only two companies that exploit lithium in Chile and they do so in the Salar de Atacama, which concentrates 90% of the country’s reserves: the American company Albemarle and the Chilean Sociedad Química y Minera (SQM), controlled by the Chinese company Tianqi y Julio Ponce Lerou, son-in-law of former dictator Augusto Pinochet (1973-1990).

During this year, Chinese companies Tsingshan and BYD were awarded the only two tenders called by Chile to manufacture value-added lithium products at preferential prices, which puts China at an advantage in the global race for Chilean “white gold.”

The contracts with Tsingshan and BYD guarantee that SQM will supply them with lithium at a preferential price until 2030.

Aware of the interest in Chilean lithium, the Government announced in April its long-awaited policy on lithium, which seeks to make the State the main promoter and controller of the industry through a public-private model and a national company.

The state companies Codelco – the largest copper company in the world – and Enami will be in charge of implementing the first phase of the strategy until the national lithium company begins to operate, whose creation has to be approved by Parliament, where the Government does not have most.