Twelve companies, including Rio Tinto, BYD, and LG Energy Solution, have submitted proposals to develop the lithium-rich Altoandinos salt flats in Chile’s Atacama region. These global players are vying for the opportunity to tap into this valuable resource. This initiative is a key component of Chile’s plan to boost lithium production by collaborating with private companies.
In May 2024, the state mining company, Empresa Nacional de Minería (ENAMI), initiated its search for partners. ENAMI is looking for companies that can offer either financial or operational support in return for an ownership stake in the Altoandinos project. The specific percentage of the stake has not yet been revealed.
ENAMI’s Chief Executive, Ivan Mlynarz, has confirmed the dedication of these companies to move forward with the project, highlighting the significance of collaboration between the public and private sectors in the development of Chile’s lithium resources. “This statement affirms the dedication of these companies to move forward with a collaborative effort to bring this project to fruition,” Mlynarz declared.
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A highly competitive industry
Alongside Rio Tinto, BYD, and LG Energy Solution, several other companies have expressed interest in the project. These include Eramet from France, POSCO from South Korea, Belsaco from Chile, Tecpetrol from Argentina, Axionit from Russia, Summit Nanotech from Canada, Grupo Errazuriz from Chile, and the CNRG and BTR consortium from China.
The Altoandinos salt flats are a crucial location for the Chilean government’s efforts to increase lithium production. The project is part of a larger initiative to significantly boost local production of the battery metal in the coming years. It is anticipated that three or four additional projects will be established by 2026 to further contribute to this goal.
Global Demand and Strategic Importance
The demand for lithium, a crucial element in electric vehicle batteries, is expected to increase fourfold by 2030, reaching a total of 1.8 million tonnes. Chile, being the world’s second-largest producer of lithium, plays a vital role in meeting the global demand for this resource. In 2023, the country’s lithium carbonate exports accounted for 5.3% of total Chilean shipments, underscoring the economic importance of this valuable resource.
What to Do Next
On August 19, 2024, ENAMI will make an announcement regarding the companies that meet the eligibility requirements. These companies will then proceed to negotiations with the final round of candidates. The company has set its sights on producing approximately 60,000 tonnes of lithium annually at the Altoandinos site.
This initiative highlights Chile’s dedication to utilizing its abundant lithium reserves in order to contribute to the worldwide shift towards renewable energy and electric mobility. The participation of prominent global entities such as Rio Tinto, BYD, and LG Energy Solution underscores the significant role that the Altoandinos project plays in the worldwide lithium supply chain.
