Chile Confident in Lithium Investment Amidst Global Oversupply
Chile, boasting the world's largest lithium reserves, remains optimistic about attracting investor interest in new drilling licenses, despite a worsening global glut.
Chilean Mining Minister Aurora Williams expressed confidence that companies will compete for contracts, which are available until January 31st. New areas have been identified for lithium mining, including salt flats, clay deposits, and geothermal sources.
The government aims to increase production through a public-private partnership model, with the state holding a controlling stake in strategic operations. The long-term demand for electric vehicles is expected to buoy investor interest despite the current oversupply.
Currently, SQM and Albemarle Corp. are the only lithium producers in Chile, extracting from a single salt flat. National output is projected to increase by 7% this year, reaching 305,000 metric tons. State-owned companies Enami and Codelco are nearing partnerships for lithium projects, aiming to double production over the next decade.