Chile's lithium projects spark interest from over 50 companies

More than 50 companies have expressed their interest in developing lithium projects in Chile, as stated by the Finance Minister Mario Marcel on Tuesday. This announcement came after the Chilean government called for proposals for a range of salt flats containing the battery metal.

Chile, renowned as the world's largest copper producer, issued a call for proposals in April to develop lithium projects in more than two dozen salt flats that have not been fully explored yet. However, the government has reserved the Atacama and Maricunga brine deposits for state control.

In response to this call, 54 firms from 10 different countries submitted statements of interest to develop 88 projects through the public process, which concluded on Monday, as revealed by Minister Marcel during an event in Santiago. He further elaborated, "There are investors of different sizes ... there are local investors and many foreign investors. There is clearly a very broad interest in investing in this industry."

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The mining ministry will later provide detailed information on the salt flats that have received overlapping proposals from multiple companies.

Back in April, Chile's mining minister had stated that a tender process would be initiated if more than one company expressed interest in a single site.

However, investors have raised concerns about how the government will award lithium contracts in salt flats where mining concessions have previously been granted, as this could create a situation of double ownership, leading to potential conflicts.

Chile is actively seeking to strengthen its role in the lithium industry, currently the second-largest after Australia. The country aims to achieve this through state-led projects as well as private investment.

During an event in Santiago on Tuesday, the U.S. ambassador to Chile, Bernadette Meehan, highlighted the "intense interest" shown by U.S. companies not only in extracting lithium but also in producing components that utilise the material, such as batteries. She stated, "There are U.S. companies and Western companies interested in all lithium opportunities announced by the government of Chile."

Currently, only the U.S. firm Albemarle and the local miner SQM are producing lithium in Chile. Last month, SQM signed an agreement with the state-run giant Codelco to launch a majority state-run joint venture in the Atacama salt flat. Codelco is actively seeking a partner for a major new lithium project in the Maricunga salt flat.