Chile Expands Lithium Extraction Opportunities with Six New Sites

Chile has designated six additional sites for private companies to extract lithium, adding to the six priority areas previously announced in September, the mining ministry said on Thursday. The move aims to boost lithium production by encouraging private sector involvement in the mining of this critical battery metal.

Chile, the world's second-largest producer of lithium, first announced its plan for new lithium extraction projects to be led by private companies in September. This strategy complements the government's ongoing efforts through state-run copper giant Codelco to increase the production of lithium, which is vital for battery manufacturing in electric vehicles and renewable energy storage.

The newly designated areas are described as "deposits of great interest for the development of lithium and other mineral exploration and exploitation projects," the ministry said in a statement. These projects could also support polymetallic mining, lithium extraction from clay, and geothermal resources. The six new zones are primarily located in Chile's northern regions of Antofagasta and Tarapacá.

Companies interested in participating have until January 31 to submit proposals for all 12 areas, following an extension from the original deadline of December 31 for the first group of lithium deposits. To be eligible, companies must demonstrate experience in the lithium value chain, sufficient financial resources, and control at least 80% of the mining concessions in the proposed project area.

A separate procedure will apply to Cerro Pabellón in the Antofagasta region due to an existing geothermal energy project at the site, the ministry added.