US Chile Critical Minerals Talks Signal New Supply Chain Reset

US Chile Critical Minerals

US Chile critical minerals cooperation is moving onto a formal diplomatic track after the two countries signed a joint declaration to begin discussions on critical minerals and rare earths. The agreement was signed in Santiago during a meeting between Chilean president José Antonio Kast and US deputy secretary of state Christopher Landau.

US Chile critical minerals talks will focus on mechanisms to strengthen supply chains for strategic raw materials. Chile’s foreign affairs ministry said technical teams will examine projects of interest, scrap management for critical minerals and rare earths, and public-private financing mechanisms.

US Chile critical minerals cooperation carries direct industrial importance because Chile is one of the world’s most important resource economies. The country is the largest global copper producer and the third-largest lithium producer, while its large lithium reserves remain underdeveloped because of long-standing legal restrictions.

Chile’s Copper and Lithium Base Gives the Talks Strategic Weight

Chile’s mineral position gives the US a clear reason to rebuild cooperation. Copper is central to power grids, electrification, data centers, renewable energy, industrial equipment, and defense systems. Lithium remains essential for batteries, energy storage, and electric vehicles.

The new talks also include rare earths and scrap management. That broader scope suggests the discussions are not limited to mining projects. They may also cover recycling, secondary raw materials, processing routes, and financing structures that can support a more resilient supply chain.

Chile’s untapped lithium potential is especially important. The country has the world’s largest lithium reserves, but development has been constrained by legacy laws and policy limits. If cooperation creates more investable project structures, Chile could become a more active pillar in allied battery material supply.

US Policy Shift Reopens a Critical Minerals Channel With Chile

The declaration also marks a reset in US-Chile relations after a tense period under former president Gabriel Boric. Washington had moved ahead with critical minerals partnerships with other allies earlier this year, but Chile was not included in the initial initiative.

That omission made Chile’s absence notable. Any serious Western critical minerals strategy is difficult to build without Chile because of its copper and lithium position. The new declaration therefore signals a practical return to resource diplomacy.

For Chile, the discussions could open access to financing, technology, and downstream partnerships. For the US, they offer a pathway to reduce exposure to concentrated supply chains and secure materials needed for industrial competitiveness, energy security, and defense resilience.

The Metalnomist Commentary

The US cannot build a credible critical minerals strategy without Chile. The key question is whether this declaration becomes a real project-financing framework or remains another diplomatic signal without industrial execution.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Codelco Lithium Ascotan Move Expands Chile’s Strategic Control Over New Brine Assets

Codelco Lithium

Codelco lithium Ascotan plans mark another important step in Chile’s effort to keep stronger state influence over future lithium supply. Codelco and Quiborax formed a joint venture called Minera Ascotan and applied for a special lithium operating contract. That contract is required for lithium extraction in Chile. As a result, Codelco lithium Ascotan plans now sit at the center of Chile lithium strategy.

This move matters because Ascotan is not a minor asset. The salt flat is described as the third largest lithium reserve in Chile. That gives the project long-term strategic value inside one of the world’s most important lithium jurisdictions. Therefore, Codelco lithium Ascotan plans strengthen the state miner’s growing role in Chile’s next lithium phase.

The structure of the deal also reveals the political logic. Chile’s current framework requires public-private partnerships so the state can retain control while private capital supports development. That model has been in place since 2023 under the CEOL-based lithium strategy. Consequently, Chile lithium public-private partnership is now the main route for new project access.

Ascotan Salt Flat Adds to Codelco’s Expanding Lithium Portfolio

Ascotan salt flat adds another major asset to Codelco’s widening lithium position. The state miner is already set to become the majority owner in SQM’s Atacama operations from 2031. It is also advancing its partnership with Rio Tinto at Maricunga. As a result, Codelco lithium Ascotan plans are part of a broader portfolio build, not a standalone move.

That portfolio strategy matters because Chile wants more than royalty exposure from lithium. It wants stronger long-term participation in ownership, production, and strategic decision-making. Codelco is clearly becoming the state’s main operating vehicle for that ambition. Therefore, Ascotan salt flat could become another pillar in Chile’s effort to shape its own lithium future more directly.

The Quiborax partnership appears tactical as well as commercial. The article suggests Codelco likely chose a non-mining partner to secure the CEOL process more quickly. That reflects rising urgency ahead of a political transition. Meanwhile, it shows how project structure can be shaped by policy timing as much as geology.

Chile Lithium Strategy Faces a Political Test as New Leadership Nears

Chile lithium strategy now faces a more uncertain political backdrop. The article notes that incoming president Jose Antonio Kast has shown willingness to change the country’s lithium mining policy. He is scheduled to take office on 11 March. As a result, Codelco lithium Ascotan plans may also be an effort to lock in strategic progress before policy direction potentially changes.

The future ownership structure also remains important. Quiborax currently holds 66pc of the joint venture, but both initial partners are expected to make room for a new majority owner once the CEOL is granted. That new partner would be responsible for developing the project. Therefore, Chile lithium public-private partnership will remain central even if Codelco keeps strategic influence.

This makes the Ascotan move significant for the wider market. It shows Chile is still pushing forward with a state-guided lithium model, even as political uncertainty grows. If Codelco continues adding assets at this pace, Boric’s vision of making it Chile’s leading lithium producer could become more credible than many expected.

The Metalnomist Commentary

This move matters because it shows Chile is still trying to build lithium control through structure, not just ownership slogans. Codelco is becoming the state’s main instrument for that strategy. If Ascotan advances, Chile may prove that public-private lithium development can still move forward even in a changing political environment.

Chile lithium contract with Enami anchors new national strategy

Chile lithium mining

Chile lithium contract with Enami marks a major step in the country’s new lithium strategy. The agreement grants Enami rights over the Altoandinos salt flat, Chile’s largest undeveloped lithium deposit. It also establishes the first special lithium operation contract, known locally as a Ceol, under Boric’s strategy.

Altoandinos salt flat and Chile’s lithium strategy

The Chile lithium contract with Enami runs until 2060 and targets production starting around 2032–2034. Enami and partner Rio Tinto plan to develop the Aguilar, Grande and La Isla salt flats. The state miner reports 15mn tonnes of lithium carbonate equivalent, significantly above Chile’s published resource base. As a result, Altoandinos could become a flagship asset within Chile’s broader national lithium strategy.

Chile lithium contract with Enami operates within a strict strategic resource and nuclear oversight framework. Laws from the 1970s and 1980s classify lithium as strategic and limit purely private concessions. Therefore, Ceols must pass review by the nuclear energy commission and other state institutions before development. This framework aims to capture more value for Chile while controlling environmental and social risks in the Atacama.

Global EV supply chains and Chile’s lithium leadership

Chile remains the world’s second largest lithium producer, anchored by SQM and Albemarle in the Atacama salt flat. However, the Chile lithium contract with Enami shows how future growth will rely more on state led partnerships. The Altoandinos project can diversify production beyond the core Atacama operations and support long term export revenues. Meanwhile, global battery and EV manufacturers will view this contract as an important new source of high grade brine.

Competition for secure lithium supply will intensify as more countries classify the metal as strategic. Therefore, Chile lithium contract with Enami sends a strong signal to investors about policy direction and project pipeline. International partners must understand the state’s central role, longer development timelines and heightened community expectations. As a result, any Altoandinos timetable slippage could reshape global supply expectations for EV batteries and energy storage.

The Metalnomist Commentary

Chile’s new contracting model blends resource nationalism with pragmatic partnerships across the lithium value chain. Investors that align with this approach and accept higher state involvement may gain durable exposure to premium brine assets. Yet they must also plan for stricter governance, evolving royalty regimes and closer scrutiny from global downstream customers.

Chile Leads Global Lithium and Copper Exports in 2024

Chile Copper Mining

Copper exports strengthen Chile’s global leadership

Chile maintained its position as the world’s leading copper exporter in 2024, driving both value and volume. The Chile lithium and copper exports reached over $50bn, accounting for 15pc of global copper trade, according to Subrei. The country produced 5.3mn t of copper, or 23pc of global output, with state-owned Codelco contributing 1.44mn t. Chile dominated shipments of copper concentrates and cathodes, with the EU sourcing 39pc of its cathode imports from Chile and India receiving a third of its concentrates from Chilean producers.

Lithium exports secure global dominance

Although second to Australia in lithium production, Chile led the world in lithium carbonate equivalent (LCE) exports. The Chile lithium and copper exports accounted for 78pc of global LCE trade, worth $2.6bn. Chile produced 285,000t of LCE in 2024, with SQM maintaining exclusive production and sales of lithium hydroxide domestically. Major markets for Chile’s LCE included China, the US, the EU and Japan, while lithium hydroxide exports were focused on Brazil and the US.

Chile also led in molybdenum, securing the top spot in exports of molybdenum oxides and hydroxides with a 40pc share, and roasted oxides with 33pc of global trade. It ranked fourth globally in ferro-molybdenum exports, reinforcing its role as a critical supplier of strategic minerals.

The Metalnomist Commentary

Chile’s dual dominance in lithium and copper exports highlights its pivotal role in global supply chains for energy transition metals. However, this dependence on a narrow set of commodities exposes the country to price volatility and geopolitical risk. Strategic investment in downstream processing and value-added production could strengthen Chile’s industrial resilience.

Chile copper smelter upgrade set to transform Paipote complex

Chile Copper Smelter

The Chile copper smelter upgrade at Enami’s Paipote complex is moving a step closer to reality as regulators signal support for the $1.7bn project. Chile’s environmental impact service SEA has recommended approval, with the Atacama region’s environmental commission scheduled to vote on 29 October. This Chile copper smelter upgrade would modernise a 1950s-era facility, strengthen support for small and mid-scale miners and align Chile’s copper refining base with stricter environmental standards.

The Paipote metallurgical complex currently processes regional ores for Chile’s numerous small and medium miners, but it has struggled with financial losses and environmental compliance. Enami temporarily closed the smelter in 2024 to address these issues. As a result, the Chile copper smelter upgrade proposal combines capacity growth with cleaner technology, positioning the Atacama facility as a more competitive and sustainable processing hub in the world’s largest copper-producing nation.

Chile copper smelter upgrade doubles capacity and adds refinery

Under the plan, the Chile copper smelter upgrade will more than double Paipote’s processing capacity to 850,000 t/yr of copper concentrates. The project will also add an electrolytic refinery capable of producing 240,000 t/yr of copper cathodes, allowing more value to be captured domestically instead of exporting concentrates. Beyond copper, the upgraded plant will process anode sludge to recover palladium, tellurium, selenium, platinum, silver and gold, deepening Chile’s exposure to high-value minor metals markets.

Enami has already received over 15 expressions of interest from banks, funds, miners and traders to finance the project through offtake-based structures. The Chile copper smelter upgrade therefore sits at the intersection of industrial policy and commercial appetite, using future production to unlock capital today. Technically, the project will install a new bottom-blowing reactor and continuous converting technology designed to lift captured emissions from around 95pc to 99pc, an important step in reducing the plant’s environmental footprint in the Atacama region.

The Metalnomist Commentary

If approved, Paipote’s modernisation would mark a significant reinforcement of Chile’s mid-tier copper processing base, particularly for smaller miners that rely on Enami’s infrastructure. The Chile copper smelter upgrade also illustrates how global copper leaders are using brownfield assets to deliver both higher ESG performance and more refined output. For traders and investors, the project underscores a broader trend: future copper supply security will increasingly depend on environmentally upgraded smelters, not just on new mines.

Paipote Copper Smelter Delay Pushes Chile’s Processing Expansion to 2031

Enami copper

Paipote copper smelter development in northern Chile is facing a delay of more than two years, pushing the country’s major state-backed smelting expansion further into the next decade. Chile’s national mining company Enami now expects construction of the $1.7bn project to begin in October and finish in February 2031.

The revised schedule replaces the earlier plan to start construction in February and complete the project by November 2028. The new dates were included in documents submitted to Chile’s environmental evaluation service, Sea.

Paipote copper smelter modernization is strategically important because Chile remains one of the world’s largest copper producers but has limited domestic smelting and refining capacity compared with its concentrate output. The delay extends the period in which more Chilean copper concentrate will continue to depend on overseas processing.

The project is designed to more than double smelting capacity at the Paipote metallurgical complex to 850,000 t/yr of copper concentrates. It will also include an electrolytic refinery capable of producing 240,000 t/yr of copper cathodes.

Engineering Changes Add Cost and Push Back Construction

The delay follows completion of detailed engineering studies for the smelter. Enami said the proposed changes to the original project, which was approved in October 2025, will cost $65mn.

The changes include demolition of existing infrastructure at the metallurgical complex. Some structures must be removed because of age, while others interfere with the new construction plan.

This is a common risk in brownfield metallurgical projects. Existing plants often provide strategic location and infrastructure advantages, but they can also create cost, demolition and layout challenges when new technology is added.

Enami’s filing seeks confirmation from Sea that the proposed changes do not need to be submitted to Chile’s environmental impact evaluation system. The outcome will matter for timing because any additional environmental review could further extend the project schedule.

The Paipote copper smelter delay also reflects the complexity of modern smelting projects. New plants must meet tighter environmental standards, handle higher concentrate volumes and integrate refining capacity while controlling emissions and operating costs.

For Enami, the project is more than a capacity expansion. The company suspended the existing smelter in 2024 to stem financial losses and improve environmental performance. The modernization is therefore intended to rebuild processing capability on a more sustainable and competitive basis.

Chile’s Copper Value Chain Remains Exposed to Processing Bottlenecks

The delay has wider implications for Chile’s copper value chain. Chile produces large volumes of copper concentrate, but domestic processing capacity has not expanded in line with mine output.

A larger Paipote complex would strengthen local copper concentrate processing and increase domestic cathode production. It would also support small- and medium-sized copper producers, which rely on Enami to process, smelt and refine their material.

That role is important for Chile’s mining structure. Major copper producers often have access to export markets and long-term concentrate buyers. Smaller producers depend more heavily on national processing infrastructure to convert output into marketable products.

The project’s planned 850,000 t/yr concentrate capacity would give Enami a much stronger position in Chilean smelting. The 240,000 t/yr cathode refinery would also help capture more value inside the country rather than exporting concentrate for overseas treatment.

However, the new 2031 completion date means these benefits will arrive later than planned. In the meantime, Chile remains more exposed to global treatment charges, overseas smelter availability and concentrate export logistics.

The delay also comes as copper demand is increasingly tied to grids, electrification, renewable energy, electric vehicles and industrial investment. Chile’s ability to capture more value from copper will depend not only on mine output, but also on smelting, refining and downstream processing capacity.

For Enami, execution will be critical. The company must manage engineering changes, environmental requirements, demolition, construction and financing while restoring confidence in Paipote’s long-term role.

For Chile, the project remains strategically necessary despite the delay. A modern Paipote copper smelter could improve domestic processing resilience and support a more integrated national copper industry.

The Metalnomist Commentary

The Paipote delay shows that copper resource leadership does not automatically translate into processing strength. Chile needs modern smelting and refining capacity to capture more value from its copper base, but brownfield execution risk remains a serious bottleneck.

Chile Copper Production Falls as Mature Mines and Acid Costs Pressure Supply

Chile Copper minnig

Chile copper production fell sharply in the first quarter, deepening concerns over near-term supply from the world’s largest copper-producing country. Output declined by 5.8% year on year to 1.217mn t.

Chile copper production weakness was driven by lower output from mature mines, softer grades and weaker refined cathode production. March was especially weak, with national copper output down 9% from a year earlier.

Chile copper production matters because the global copper market is already facing tight concentrate availability, fragile refined flows and stronger demand from grids, electrification and data centres.

The decline reinforces a core market concern. Higher copper prices are not quickly translating into higher mine output, especially in countries where ageing assets and delayed projects continue to limit supply response.

Concentrate Output Falls as Major Mines Underperform

Chile’s copper concentrate output fell by 6% year on year to around 947,000t in the first quarter. Concentrates accounted for almost 78% of the country’s total mine output.

The weakness was visible across both state-owned and private producers. Escondida remained Chile’s largest copper mine with 311,600t in the quarter, followed by Codelco at 299,600t, including stakes in El Abra and Anglo American Sur.

Codelco’s own divisions produced around 271,600t. The company is targeting 1.344mn t this year after producing about 1.33mn t in 2025.

The first-quarter result keeps pressure on Codelco to stabilise output after several years of structural underperformance. Ageing mines, delayed projects and higher operating costs remain key constraints.

March data showed broad weakness at the largest mines. Codelco output fell by nearly 10% year on year to 110,900t, while Escondida declined by almost 16% to 101,600t.

Collahuasi, jointly owned by Glencore and Anglo American, produced 31,400t in March, down 10.8% from a year earlier. Its first-quarter output totalled 88,200t.

Other major producers also faced pressure. Los Pelambres produced 69,600t, Anglo American Sur 58,200t, Quebrada Blanca 55,500t and Spence 44,600t during the quarter.

Antofagasta produced 143,000t of copper in the quarter. The company cited lower processing rates and weaker grades at Los Pelambres and Centinela concentrates.

Teck’s Quebrada Blanca was one of the more stable performers. The mine produced 55,500t despite planned maintenance and a shorter February, supported by stronger March throughput and recoveries.

SX-EW Cathode Weakness Exposes Chile to Acid and Fuel Costs

Chile’s refined SX-EW cathode output reached 269,300t in the first quarter. January output increased, but February and March both fell from a year earlier.

Refined electrolytic cathode output was weaker at 107,000t. March production fell by 38.7% year on year, pulling total refined cathode output to about 376,300t.

This matters because Chile’s oxide and SX-EW operations are increasingly exposed to sulphuric acid availability and pricing. Acid is a reagent cost for leaching operations.

Smelters can benefit from higher sulphuric acid prices when they sell acid as a by-product. SX-EW producers face the opposite exposure, as higher acid costs directly pressure operating margins.

Higher diesel prices are adding to the problem. Codelco said Middle East-related cost increases lifted its cash cost by at least 10¢/lb.

Antucoya also showed the cost pressure. Output weakened, while costs rose by 23% year on year to $3.03/lb on higher sulphuric acid and diesel prices.

Chile’s investment pipeline remains significant but long-dated. Freeport-McMoRan has started environmental permitting for a $7.5bn expansion of El Abra.

The project aims to lift production to around 300,000 t/yr from 91,400t in 2025. But it requires a new concentrator and desalination plant and is not expected to start until the next decade.

That timing is critical for the market. Chile has projects, but they will not solve immediate supply tightness.

The first-quarter decline therefore strengthens copper’s structural bull case. Global demand is rising, while Chile’s mature mine base is struggling to deliver stable growth.

The Metalnomist Commentary

Chile’s copper problem is no longer only grade decline; it is now a combined issue of mine maturity, acid exposure, fuel costs and delayed expansion. The market should treat Chilean supply recovery as a slow process, not a quick response to record copper prices.

Chile Rio Tinto Lithium Deposit Partnership Secures Largest Undeveloped Resource

Chile Rio Tinto

Chile Rio Tinto lithium deposit partnership emerged as Chile's national mining company Enami selected the Anglo-Australian miner to explore and develop the Altoandinos project, the country's largest undeveloped lithium deposit. The Chile Rio Tinto lithium deposit agreement establishes a public-private concession with Rio Tinto holding 51% ownership while Enami retains 49%, representing a combined $3 billion investment where Rio Tinto contributes $425 million for access to over 15 million tonnes of lithium carbonate equivalent resources.

Competitive Selection Process Validates Rio Tinto's Technology Leadership

Chile Rio Tinto lithium deposit selection followed Enami's unanimous board decision choosing Rio Tinto from a competitive pool including China's BYD, France's Eramet, and South Korea's Posco. Rio Tinto's proprietary direct lithium extraction (DLE) technology provided the decisive advantage, offering faster and more environmentally friendly operations compared to traditional evaporation methods. The DLE approach eliminates brine evaporation requirements while accelerating production timelines and reducing environmental impact.

Meanwhile, Rio Tinto's Rincon plant in Argentina serves as a demonstration and pilot facility for Chilean operations since both brine deposits share similar chemical compositions. This existing operational experience provides technical validation and reduces development risks for the Altoandinos project. Rio Tinto will assume complete operational responsibility while financing the project through financial operation and contributing to pre-feasibility study expenses.

Massive Resource Scale Supports 75,000 Tonne Annual Production

However, the Altoandinos salt flat contains substantial lithium resources exceeding 15 million tonnes of lithium carbonate equivalent with production capacity reaching 75,000 tonnes annually according to Enami projections. This production scale positions the project among global lithium industry leaders while supporting Chile's strategic objectives for lithium sector development. The resource magnitude justifies the $3 billion investment commitment from both partnership participants.

Therefore, the project timeline remains under development with no specific operational start date announced pending pre-feasibility study completion and regulatory approvals. The comprehensive development approach ensures technical optimization while addressing environmental and social considerations essential for sustainable lithium extraction. Rio Tinto's operational expertise combined with Enami's local knowledge creates optimal conditions for successful project implementation.

Strategic Expansion Reinforces Chile Lithium Market Leadership

Furthermore, the Altoandinos partnership follows Rio Tinto's recent selection by Chilean copper giant Codelco for the Maricunga salt flat exploration, representing Chile's second-largest undeveloped lithium deposit. This dual partnership positioning demonstrates Rio Tinto's strategic commitment to Chilean lithium development while reinforcing Chile's global lithium market leadership. The concurrent projects create synergies for technology deployment and operational efficiency.

As a result, Chile strengthens its position as the world's premier lithium jurisdiction through strategic partnerships with established international miners possessing advanced extraction technologies. The public-private partnership model enables state participation in resource development while leveraging private sector expertise and capital. This approach maximizes economic benefits while maintaining national control over strategic mineral resources essential for global energy transition.

The Metalnomist Commentary

Chile's selection of Rio Tinto for both the Altoandinos and Maricunga lithium projects demonstrates sophisticated resource development strategy that prioritizes advanced extraction technology and environmental sustainability over purely financial considerations. The emphasis on direct lithium extraction capabilities reflects Chile's commitment to maintaining global lithium leadership through technological innovation, particularly important as competition intensifies from emerging producers in Argentina, Australia, and other jurisdictions seeking market share.

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.

Chile lithium mining license moves forward under private–indigenous JV model

Chile lithium mining

Chile lithium mining license dynamics are shifting as a private–indigenous joint venture moves first in the new Ollagüe process. The Chile lithium mining license application was filed by Kuska Minerals, a JV between Canada’s Wealth Minerals and the Quechua Indigenous Community of Ollagüe. The Chile lithium mining license bid positions Kuska as an early mover in a basin that the government already classed as high potential in 2024. By partnering with the CIQO, Wealth aligns directly with Chile’s requirement for agreements with affected native communities. This structure also helps the company streamline its own consultation process while offering the community a 5pc equity stake in future value.

Indigenous partnership reshapes Ollagüe lithium approvals

Chile now places indigenous consultation at the centre of lithium approvals, and the Ollagüe salt flat shows how this works in practice. Authorities recently completed native consultations that remapped the exploitable area to protect culturally sensitive zones and populated areas. As a result, the mining ministry opened a fresh application round focused on the remaining brine resources. Kuska is, so far, the only bidder to publicly submit an official application for this high-altitude basin. The JV is now verifying that it meets every technical and legal criterion and has committed to comply fully before the undisclosed deadline. This early alignment with both state and community expectations should reduce project risk if the license advances to the next stage.

Faster licensing supports Chile’s lithium expansion strategy

Chile is using a streamlined process in Ollagüe to accelerate lithium supply while preserving regulatory control. Officials expect the new licensing window to move relatively quickly, signalling to investors that administrative reforms are starting to bite. At the same time, the country has already approved seven other lithium-related permits this year, including projects linked to Eramet, a JV with Quiborax and Codelco, and two Rio Tinto applications. These approvals affirm Chile’s intent to turn selected salars into bankable projects, rather than leaving resources stranded amid policy debate. For downstream battery and EV supply chains, the Ollagüe basin could become another node in a diversified, ESG-sensitive lithium portfolio if Kuska’s bid succeeds.

The Metalnomist Commentary

Kuska’s structure shows how future lithium developers in Chile may need to blend foreign capital, state oversight and genuine indigenous participation. If this model delivers both social licence and predictable approvals, it could become a template for other high-potential salars. Global buyers should watch Ollagüe closely, as community-anchored licensing could shape both cost structures and long-term offtake security.

Codelco Rio Tinto Partnership Targets Faster Mining Development in Chile

Codelco Rio Tinto Partnership

Codelco Rio Tinto partnership plans could accelerate major mining development in Chile as the state-owned copper and lithium group seeks deeper cooperation with global miners. The preliminary agreement will focus on identifying joint investment opportunities in large-scale mining projects across the country.

Codelco and Rio Tinto will create an executive committee made up of senior officials from both companies. The committee will identify prospective pilot projects, assess major mining opportunities, and oversee implementation where cooperation advances.

The Codelco Rio Tinto partnership reflects a broader strategic shift inside Chile’s mining sector. Codelco wants to accelerate timelines, reduce costs, and improve ESG compliance by sharing technical knowledge with established international mining companies.

Chile Turns to Partnerships to Unlock Copper and Lithium Growth

Chile remains one of the world’s most important copper producers, but project development has become more difficult. Lower ore grades, permitting complexity, water constraints, community expectations, and capital intensity are increasing the pressure on producers.

Codelco’s partnership strategy aims to address those constraints. By working with companies such as Rio Tinto, the Chilean state miner can access technical expertise, operational experience, project discipline, and global capital networks. This could help move exploration and development projects faster.

The agreement also builds on Codelco’s recent cooperation with other major miners. The company partnered with BHP last year to enhance copper exploration in the Antofagasta region. This suggests Codelco may pursue more private-sector alliances as Chile works to protect its long-term copper output.

Rio Tinto Ties Strengthen Chile’s Critical Minerals Platform

Rio Tinto and Codelco have already been strengthening their relationship through work on the Maricunga lithium project and the Nuevo Cobre region. The new agreement broadens that cooperation and positions both companies to explore additional copper and lithium opportunities.

This matters because Chile is central to both traditional mining and the energy transition supply chain. Copper remains essential for power grids, electrification, EVs, renewables, and industrial infrastructure. Lithium remains strategically important for batteries and energy storage.

The Codelco Rio Tinto partnership therefore carries value beyond individual projects. It signals that Chile’s mining future may depend increasingly on structured cooperation between state-owned champions and global mining companies with advanced technical and ESG capabilities.

The Metalnomist Commentary

Codelco’s partnership model shows that Chile understands the limits of going alone in a more complex mining environment. The next competitive advantage will come from faster permitting, stronger technical execution, and alliances that can turn resource potential into reliable supply.

Chile Projects $83.2 Billion in Mining Investments Through 2033

Chile mining

Chile is poised to solidify its position as a global mining powerhouse with projected investments of $83.2 billion spanning 2024-2033.

Massive Investments in Mining Projects

The Chilean Copper Commission (Cochilco) unveiled its latest study highlighting a significant increase in mining investments for the coming decade. The forecast includes 51 mining projects, up from 49 in the previous study for 2023-2032, which projected $65.7 billion in investments. This growth signals Chile's commitment to bolstering its mining sector and enhancing its global competitiveness.

Key players in Chile's mining expansion include major domestic entities like El Abra, Antofagasta, and state-run copper miner Codelco, which collectively account for 64.5% of the total investment. International stakeholders are also playing a vital role:

• Canadian companies such as Teck, Capstone Copper, Los Andes Copper, and Kinross will represent approximately 10% of investments.
• Japanese corporations, including Sumitomo Metals and Mitsubishi Corp, will contribute 5.7%.
• Australian firms, spearheaded by BHP Billiton, will make up 5.2%.

Copper Production and Diversification

The influx of capital is projected to increase Chile’s copper production capacity by 2.23 million metric tonnes annually, adding to the 5 million tonnes produced in 2023, according to the US Geological Survey (USGS). This aligns with Chile’s status as the world’s largest copper producer.

Additionally, $4.7 billion of the investments will be allocated to 15 projects focusing on "metals other than copper," including lithium and gold. Chile already ranks as the world's second-largest producer of lithium, a critical material for batteries and renewable energy storage.

Driving Forces Behind the Investment Surge

This investment boom highlights Chile’s strategic approach to capitalizing on the global demand for essential minerals. Increased copper production will cater to infrastructure and green energy projects worldwide, while lithium investments target the surging electric vehicle and renewable energy sectors.

Cochilco’s report emphasizes the country’s appeal to global mining giants and underscores Chile’s robust regulatory framework and resource-rich landscape as key factors driving foreign investment.

Codelco SQM Lithium Deal Approved by Chile’s Antitrust Authority, Paving Way for JV Control

Codelco-SQM

Chile's antitrust regulator FNE has approved the Codelco SQM lithium deal, a pivotal step toward consolidating state influence over one of the world’s most valuable lithium assets. The Codelco SQM lithium deal gives state-owned copper giant Codelco a path to majority control of the Atacama salt flat operations, currently run by lithium producer SQM.

Global Approvals Advance, Final Hurdles Remain in Chile

The deal has already received green lights from regulators in Brazil, South Korea, Japan, Saudi Arabia, and the European Union. Only China’s approval remains pending. However, for full execution, the transaction must also be cleared by Chile’s nuclear energy commission (CCHEN) and the national development agency Corfo, which is conducting community consultations with indigenous stakeholders in the region.

Codelco aims to finalize the joint venture in the second half of 2025. Under the agreement, Codelco will acquire a 51% controlling interest in the Atacama lithium operations beginning in 2031, when SQM’s current mining lease expires.

Atacama: The World’s Richest Lithium Reserve

Chile holds the world’s largest known lithium reserves, according to the U.S. Geological Survey (USGS). Most of these resources lie in the Atacama salt flat, a globally strategic asset for electric vehicle (EV) battery supply chains. The Codelco SQM lithium deal signals Chile’s long-term strategy to exert greater control over critical minerals while maintaining foreign investment through partnerships.

As the global lithium market becomes increasingly geopolitically sensitive, Chile’s model offers a blend of state participation and private sector efficiency—providing stability while advancing national resource policy.

The Metalnomist Commentary

The Codelco SQM lithium deal marks a defining moment in Chile’s shift toward strategic resource nationalism. With the Atacama salt flat under partial state control, Chile positions itself as a central player in the global clean energy transition, balancing national interests with commercial partnerships.

Anglo American Codelco Chile copper deal reshapes a top-tier mine complex

Anglo American Codelco

The Anglo American Codelco Chile copper deal will turn Los Bronces–Andina into a true global copper powerhouse. The Anglo American Codelco Chile copper deal integrates mine planning between the adjacent operations and targets 120,000 t/yr of extra copper. As a result, the Anglo American Codelco Chile copper deal could unlock at least $5bn in cost savings over 21 years.

Anglo American Codelco Chile copper deal targets more metal at lower unit costs

The agreement aligns long-term mine plans at Los Bronces and Andina to optimise ore scheduling and processing. A joint plan is expected to deliver an additional 2.7mn t of copper from 2030 over 21 years. Therefore, the complex should cut unit costs by up to 15pc versus standalone strategies, with little extra capital.

Combined Los Bronces–Andina output already ranks among the world’s top 10 copper mines. The planned production uplift would push the integrated complex into the global top five. A new jointly owned operating company will manage planning and processing optimisation across both mines. However, each partner will still retain ownership of its own concessions and physical assets.

Under the Anglo American Codelco Chile copper deal, output, costs and liabilities will be shared equally. Anglo American Sur, which operates Los Bronces, remains 50.1pc owned by Anglo American, 20.4pc by Mitsubishi and 29.5pc by Becrux, Codelco and Mitsui’s joint venture. Both sides also keep the option to advance separate underground projects in parallel, preserving flexibility for future expansions.

Strategic timing as Chilean copper supply and Anglo’s portfolio evolve

The timing of the Anglo American Codelco Chile copper deal coincides with tight copper supply and rising prices. Markets are closely watching long-term additions in Chile, given strong demand from energy transition and data centre infrastructure. Therefore, a low-capex, brownfield uplift at an existing complex looks especially attractive to investors and customers.

Implementation still depends on regulatory and environmental approvals, which both firms expect to secure by 2030. Chilean authorities will scrutinise water, emissions and community impacts, especially in the high Andes. However, the partnership structure signals a willingness to share not only upside, but also ESG responsibilities. This is increasingly important as financiers and OEMs demand clearer sustainability performance from large copper suppliers.

The deal also follows Anglo American’s recently announced merger with Teck to create Anglo Teck Group. That transaction would consolidate a major iron ore, copper and zinc business with a much deeper project pipeline. In that context, the Anglo American Codelco Chile copper deal strengthens the future group’s position in premium Chilean copper. It also deepens Anglo’s relationship with Codelco, the world’s largest copper producer and a key state partner.

The Metalnomist Commentary

This agreement shows how value in copper is shifting from greenfield megaprojects to smarter integration of existing belts. By coordinating mine plans and plant utilisation, Anglo and Codelco aim to extract more metal with less new capital and lower unit costs. Market participants should watch the permitting pathway and any future expansion of this model to other Chilean districts as a template for collaborative de-risking.

Chile Lithium Exports Remain Flat in 1Q Despite Asian Rebound

Chile Lithium

European Slowdown Offsets March Recovery

Chile’s lithium exports stayed flat in the first quarter of 2025, totaling 67,200 metric tonnes of lithium salts. This matched the previous quarter, though it was 11.2% higher than the same period in 2024.

The stagnation stemmed from weak February volumes caused by soft demand in Europe and oversupply in China. LCE exports in February plunged 25% below the six-month average to 16,700t amid China’s ample inventories.

However, March brought a rebound as Asian buying resumed. Chile exported 23,000t in March alone, up 37% from February levels.

Global Trade Dynamics Reshape Demand Landscape

Belgium, once a key buyer, cut its imports by 67% year-on-year. This followed Umicore’s decision to halve cathode output in 2025 due to a 30% drop in battery material sales.

Meanwhile, China reclaimed its role as the dominant importer, accounting for 72% of Chilean lithium exports. South Korea also boosted its intake by 21%, importing 11,400t in the quarter — partly filling the gap left by Europe.

With US tariffs on Chinese battery packs nearing 200%, South Korea and Japan may gain favor in the US supply chain. This shift could raise their demand for Chilean lithium in coming months.

Uncertainty Clouds Outlook Despite Rising Production Targets

Chile aims to produce 305,000t of LCE in 2025, up 16% from last year, according to Cochilco. Yet, current export volumes suggest a 36,000t shortfall unless demand surges later this year.

The evolving global trade policy — especially under the Trump administration — may further disrupt Chile’s lithium trade. Producers face the challenge of aligning rising production with increasingly fragmented global demand.

The Metalnomist Commentary

The flat start to 2025 shows how vulnerable Chile’s lithium sector is to global policy shifts and EV market volatility. While Asia provides a buffer, Europe’s retreat and US tariffs create strategic uncertainty. Producers like SQM and Albemarle must now navigate not just markets — but geopolitics.

Chile Selects Six Priority Sites for Lithium Exploration

Chile Lithium

Chile has taken a major step forward in expanding its lithium production capabilities by selecting six key sites for exploration. According to the country's mining ministry, these locations include the Coipasa, Ollague, Ascotan, Piedra Parada, Agua Amarga, and Laguna Verde salt flats. This move reflects Chile's ongoing commitment to maintaining its position as a global leader in lithium production.

The consultation process with indigenous communities living near these exploration areas will begin in October, according to mining minister Aurora Williams. This step is part of the government’s effort to ensure that all stakeholders are involved in the decision-making process, especially regarding the environmental and social impacts of lithium extraction.

Upcoming Second List of Sites

Minister Williams also revealed that a second list of saline systems and deposits will be announced later this year, with an emphasis on feasibility criteria, geological factors, and environmental considerations. The Chilean government is striving to balance economic growth with environmental responsibility in its lithium expansion plans.

Chile has already received 12 project proposals from both private and state-run companies eager to explore lithium within the country’s borders. Finance minister Mario Marcel stated that Chile aims to increase its lithium production by more than 70% by 2030, a bold goal that would solidify its status as a lithium powerhouse.

Chile currently holds an estimated 36-40% of the world's lithium reserves, sharing its position in the so-called "lithium triangle" with Bolivia and Argentina. As the world's second-largest producer of lithium, Chile is playing a crucial role in the growing demand for this vital mineral, which is essential for electric vehicle batteries and other green technologies.

Chile Lithium BESS Project Launches in Atacama Desert

Atlas Renewable Energy

Atlas Renewable Energy has officially launched the largest Chile lithium BESS project in Latin America. The new Desert BESS facility, located in Chile's Atacama Desert, stores up to 800 MWh of solar energy using 320 lithium-based battery units. It can deliver 200 MW of power, enough to serve 122,000 households year-round.

Powering Buses and Cutting Nighttime Energy Costs

The BESS will operate under a 15-year power deal with Chilean firm Copec Emoac. Copec plans to use the system to power 2,500 electric buses across three states. As a result, each bus can travel up to 69,000 kilometers per year, significantly reducing transportation emissions and energy costs during peak nighttime hours.

Accelerating Chile’s 2030 Energy Storage Goals

The Desert BESS adds over 200 MW to Chile’s grid, pushing national energy storage above 1 GW. Therefore, the country is now on track to exceed its 2030 target of 2 GW of storage capacity by 2026 — four years ahead of schedule. The Chile lithium BESS project showcases how private-sector partnerships can accelerate public energy goals.

The Metalnomist Commentary

The Chile lithium BESS project is a milestone in Latin America's clean energy transition. Its scale, speed, and smart integration with electric mobility offer a roadmap for emerging markets aiming to lead in grid modernization.

Chile Expands Lithium Exploration with Six New Priority Sites

Chile Lithium

Chile has designated six additional sites for lithium exploration, expanding its priority areas to 12 as the country looks to capitalize on its position as a global lithium powerhouse.

New Lithium Exploration Areas Announced

On December 5, Chile’s mining ministry revealed six new sites for lithium exploration in the Tarapacá and Antofagasta regions. These areas include:

• Hilaricos and Quillagua Norte in the Tarapacá region.
• Quillagua Este, Quillagua Sur, Maria Elena Este, and Cerro Pabellon in the Antofagasta region.

Unlike traditional lithium production from brine in salt flats, these new sites present opportunities for polymetallic mining and lithium extraction from clays or geothermal sources.

Exploration and Tendering Process

Chile plans to issue special lithium operating contracts (CEOLs) for each of the 12 priority sites. The tendering process for the first five areas will begin in early 2025, with interested companies required to:

• Hold at least 80% of the mining concessions for a given deposit.
• Submit background information by the end of January 2025 for a simplified process.

For Cerro Pabellon, where geothermal energy companies Chilean Enap and Italian Enel operate, a separate tendering process will be announced.

Indigenous Consultation and Sustainability

The Chilean government emphasized that indigenous consultations will be conducted before tendering any sites, ensuring compliance with sustainability and community engagement standards. This approach aligns with Chile’s broader efforts to develop its critical minerals sector responsibly.

Chile's Global Lithium Standing

Chile is a key player in the global lithium market, holding 36-40% of global reserves as part of the "lithium triangle" with Bolivia and Argentina. The country is the second-largest producer of lithium globally, and these new initiatives aim to further cement its leadership in the market amid soaring global demand driven by electric vehicles and renewable energy.