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Chile names Atacama and Maricunga salt flats for state majority stake
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Chile names Atacama and Maricunga salt flats for state majority stake
Mar 26, 2024 4:55 PM

SANTIAGO, March 26 (Reuters) - Chile's government on

Tuesday named the country's Atacama and Maricunga salt flats as

areas where the state will have majority control in

public-private partnerships for lithium extraction.

The government is interested in participating in other salt

flats without holding a majority stake, officials said in a

press conference.

The long-anticipated announcement comes as the

government moves forward with a plan to boost state control over

the South American country's lithium industry, the world's

second-largest after Australia. The metal is a key battery

material used to power electric vehicles.

Under this plan, officials said, Chile's lithium output

should rise 70% by the end of the decade.

A tender process is set to kick off in April, they said,

with 26 salt flats open to investment by private firms.

Environmental protection will also be granted to some

30% of the salt flats, to be determined via scientific studies,

the government said.

President Gabriel Boric announced a policy shift last

year to increase state control of the lithium industry but had

yet to detail how the partnerships would work, frustrating

investors interested in pursuing new lithium projects.

Only two companies currently extract lithium in Chile -

Chile's SQM and U.S.-based Albemarle - both in

the Atacama salt flat.

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