Novandino Lithium Investment Targets $3.5bn Expansion in Chile’s Atacama

Novandino

Novandino lithium investment plans could reshape Chile’s lithium supply outlook as the producer prepares to spend more than $3.5bn to expand output and extend operations at the Atacama salt lake until 2060.

Novandino lithium investment will focus on the Salar Futuro project, which is designed to take production, sustainability and community engagement to a higher level. The company is close to submitting the project’s environmental impact study.

Novandino lithium investment remains subject to environmental approval. That approval is essential because the company needs authorisation for its Atacama operations in northern Chile’s Antofagasta region to continue beyond 2030.

The company is a joint venture between Chile’s state copper miner Codelco and SQM. Its expansion is strategically important because Chile remains one of the world’s most important lithium producers, but new project approvals have moved slowly.

Salar Futuro Could Extend Atacama Output to 2060

Salar Futuro is central to Novandino’s long-term growth strategy. The project would support continued operations at the Atacama salt lake while lifting production and improving environmental performance.

The company expects to produce 270,000t of lithium carbonate equivalent in 2026. Output is then expected to rise to 300,000t in 2027-2028, compared with 233,000t last year.

That growth would strengthen Chile’s position in global lithium supply at a time when Argentina is expanding rapidly and challenging Chile’s regional leadership.

The environmental impact study will be the key near-term milestone. Without approval, the company cannot secure the long operating extension needed to justify the investment.

Chile’s lithium sector has enormous resource strength, but regulatory complexity has slowed new supply. Novandino’s ability to advance Salar Futuro will therefore be closely watched by battery makers, automakers and lithium chemical buyers.

Technology Mix Targets Higher Efficiency and Lower Water Use

Novandino plans to use a combination of next-generation technologies to improve production efficiency and sustainability. The company is considering membrane filtration, mechanical evaporation and direct lithium extraction.

This technology mix matters because Chile’s lithium expansion is increasingly tied to environmental and community expectations. Brine operations must show better water performance, lower ecological impact and stronger local engagement.

The company said its water intensity per unit of production has fallen by 75% since 2016. That improvement is strategically important in the Atacama, where water use remains one of the most sensitive issues for lithium development.

Direct lithium extraction could also become an important part of Chile’s future production model. However, DLE must be adapted to each brine chemistry, making execution, cost control and scale-up critical.

For Chile, the project is more than a company-level expansion. It is a test of whether the country can grow lithium supply while meeting stricter sustainability standards and maintaining state participation through Codelco.

For the battery supply chain, higher Atacama output would provide more lithium carbonate equivalent from an established producing region. But timing will depend on environmental approval, technology deployment and project execution.

The Metalnomist Commentary

Novandino’s $3.5bn plan shows that Chile still has the resource base to defend its lithium position. The real challenge is whether regulatory approval and new extraction technologies can move fast enough to keep pace with Argentina’s accelerating project pipeline.