Chile's Economy
Lithium in the Atacama
How Chile holds some of the world's largest lithium reserves in the Atacama salt flats, and its 2023 national strategy giving the state control of new projects.
Chile has vast lithium reserves.
Where
The Salar de Atacama salt flat holds some of the world’s richest lithium brines.
Producers
- SQM, a Chilean company.
- Albemarle of the US.
National strategy
In 2023, President Gabriel Boric announced a national lithium strategy, giving the state a majority role in new strategic projects. Codelco and SQM agreed a joint venture.
Competition
Australia and Argentina also produce lithium.
Concerns
- Brine extraction uses water in one of the driest places on Earth.
- Indigenous communities want a say.
Opportunity
EV demand could make lithium a new pillar, if managed well.
Brine is pumped into huge ponds in the Atacama, where the sun evaporates water, leaving lithium concentrate.
Chile has some of the largest reserves.
- The Atacama holds rich lithium brines.
- SQM and Albemarle produce it.
- A 2023 strategy gave the state a larger role.
- Water use is a concern.
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