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.

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.

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 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.

Rio Tinto Chosen as Codelco Lithium Partner in Chile's Maricunga

Codelco

Chilean state miner Codelco has selected Rio Tinto as its strategic partner to develop lithium in the high-grade Salar de Maricunga basin. The newly announced joint venture marks a significant milestone for Chile’s lithium roadmap, positioning the Rio Tinto Codelco lithium partnership as a key force in one of the world’s richest brine regions. The agreement grants Rio Tinto a 49.99% stake, with Codelco holding 50.01% and leading the development.

$350 Million Investment Sets Stage for DLE Breakthrough

Under the terms of the deal, Codelco will contribute mining rights and fund feasibility studies, while Rio Tinto will initially invest $350 million in further resource analysis. If the project advances, the Australian miner has committed another $500 million to construct a direct lithium extraction (DLE) plant by the decade’s end. An additional $50 million will be invested if lithium is commercially shipped before 31 December 2030. The Rio Tinto Codelco lithium partnership aims to commercialize Maricunga as Chile’s second lithium-producing salt flat after Salar de Atacama, where Codelco also now holds licenses.

Chile Reinforces Public-Private Lithium Model

This partnership aligns with Chile’s national lithium strategy, which mandates Special Lithium Operating Contracts (CEOLs) under public-private frameworks. Since 2023, all lithium reserves are state-owned, and any development requires government participation and profit-sharing. The Rio Tinto-Codelco project represents one of three concessions awarded recently, following community approval from nearby indigenous groups. The Rio Tinto Codelco lithium partnership also signals growing trust in DLE technology and a potential shift in how Latin American lithium assets are developed.

The Metalnomist Commentary

The Rio Tinto-Codelco lithium alliance reflects a global trend: pairing major miners with national resource holders in strategic battery material projects. With political backing, high-grade resources, and DLE innovation, Maricunga could become South America's next lithium flagship.

Albemarle DLE Project Targets Higher Lithium Recovery in Chile’s Atacama

Albemarle

Albemarle DLE project plans in Chile could reshape lithium production at the Atacama salt flats by increasing recovery while reducing net brine extraction. The US-based lithium producer has submitted an environmental assessment for a $3.1 billion direct lithium extraction project at its Chilean operations.

The project is designed to add DLE capacity alongside Albemarle’s existing evaporation pond system. The company said the technology could recover nearly twice as much lithium while extracting up to 300 fewer liters per second of brine compared with traditional evaporation methods.

Albemarle DLE project development matters because Chile remains one of the world’s most important lithium supply regions. Any improvement in recovery, water management, and environmental performance could influence future lithium investment across brine-based operations.

Direct Lithium Extraction Could Change Atacama Production Economics

Direct lithium extraction uses chemical processing rather than long evaporation cycles. This can reduce production time from 12-18 months to just days, improving project flexibility and potentially accelerating lithium output.

Albemarle plans to install six DLE processing trains across three modules. These trains will complement the company’s evaporation ponds rather than immediately replace the existing system.

The process will produce lithium-depleted brine, which Albemarle plans to reinject into the salt flats’ reservoirs. Each DLE module would allow reinjection of 100 liters per second of brine, potentially reducing the company’s net extraction rate from 442 liters per second to 142 liters per second once the system reaches full capacity.

Infrastructure Investment Shows Scale of Lithium Transition

The Albemarle DLE project is not only a processing upgrade. The $3.1 billion plan also includes supporting infrastructure such as a power transmission line, a new electric substation, expansion of an existing substation, and adaptations to storage sites and pond systems.

Construction is expected to begin in the second half of 2028. The full buildout may take up to nine years, with modules commissioned and ramped up as they are completed.

The long timeline shows that DLE remains a complex industrial transition, not a simple plug-in technology. However, if successful, Albemarle’s project could strengthen Chile’s lithium competitiveness while responding to environmental pressure over brine extraction in the Atacama.

The Metalnomist Commentary

Albemarle’s DLE plan shows that the next phase of lithium competition will focus on recovery efficiency and environmental performance, not only reserve size. Chile’s challenge will be proving that higher output and lower brine impact can move together at commercial scale.

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.

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.

Lithium Market Growth Could Reach 25pc in 2026 as Battery Storage Demand Surges

SQM BESS

Lithium market growth could reach 25pc in 2026 as stronger battery energy storage demand combines with steady electric vehicle consumption, according to Chilean producer SQM. The outlook suggests that the lithium market is entering a new demand phase led not only by EVs, but also by large-scale stationary storage.

SQM raised its 2026 production guidance to 260,000t of lithium carbonate equivalent, up from 230,000t in 2025. The company also expects sales to rise by 10pc this year, supported by strong Asia-Pacific demand and full-capacity operations at its Atacama assets.

Lithium market growth is also improving short-term pricing expectations. SQM expects first-quarter sales to rise by more than 15pc from the same period in 2025, which would set a record for January-March sales. The company also expects prices to be substantially higher than the $10/kg level recorded in the fourth quarter.

Battery Storage Demand Changes the Lithium Growth Model

Battery energy storage is becoming a stronger driver of lithium demand. This matters because Bess demand can grow independently of passenger EV cycles, especially as grids add more renewable power and require storage for stability.

SQM’s outlook shows that lithium producers are increasingly watching storage demand alongside EV sales. EV consumption remains steady, but storage growth can absorb additional lithium carbonate equivalent volumes and tighten the market faster than expected.

The company has already secured contracts covering 80pc of its 2026 LCE volumes. That leaves 20pc, or around 52,000t, available for spot market sales. This structure gives SQM exposure to higher prices if demand remains strong, while also protecting much of its volume through contract coverage.

SQM Output Expansion Strengthens Chile’s Lithium Position

SQM produced 233,000t of lithium carbonate equivalent in 2025, up 14pc from the previous year. A record fourth quarter drove the result, with NovaAndino Litio producing 66,000t LCE, up 52pc from the same period in 2024.

NovaAndino Litio is the new name of SQM’s Chilean lithium subsidiary following its merger with Codelco. The rebrand signals the growing importance of Chile’s state-linked lithium strategy and the central role of the Atacama operations in global supply.

SQM’s Australian operations also continued to progress. Its attributable production from the Mt. Holland extraction site reached 156,400t of lithium concentrate in 2025, while the Kwinana hydroxide refinery produced 1,600t LCE during its ramp-up phase. These assets give SQM a broader lithium platform across both brine and hard-rock supply chains.

The Metalnomist Commentary

SQM’s forecast shows that lithium demand is becoming more diversified and less dependent on EVs alone. If battery storage continues to outperform expectations, producers with flexible sales exposure and reliable capacity could regain pricing power faster than the market expected.

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.

Chile’s Value-Added Lithium Strategy Faces Setbacks Despite New Tender

Albemarle

Preferential pricing fails to attract long-term downstream lithium investments

Chile's value-added lithium strategy continues to struggle, as the country launches a new tender targeting downstream lithium manufacturing. Despite offering preferential prices through U.S.-based Albemarle’s supply, past efforts to anchor lithium battery production in Chile have faltered due to investor withdrawal and bureaucratic hurdles.

Chinese companies exit amid weak market and contract uncertainty

On 30 April, Chile’s economic development agency Corfo issued a call for proposals to manufacture lithium-based products locally. The offer involves 9,599 tonnes/year of lithium carbonate equivalent (LCE) from Albemarle’s operations in the Atacama region, with volumes set to rise annually until the lease ends in 2043. However, Chinese firms BYD and Yongqing Technology—winners of a 2022 tender—recently exited the program, citing weak global lithium prices and the short remaining duration of SQM’s contract, which ends in 2030.

Bureaucracy and pricing formula disputes hinder industrialization

Government delays in allocating fiscal land for facilities and unresolved pricing methodology disputes have consistently derailed investment plans. Chile also failed to advance a 2018 initiative when three selected companies abandoned their projects due to disagreements over the preferential pricing mechanism. These repeated breakdowns raise concerns about the long-term viability of Chile's value-added lithium strategy.

The Metalnomist Commentary

Chile’s ambitions to move up the lithium value chain face structural and market barriers. Without streamlining regulatory procedures and securing long-term offtake confidence, the strategy risks remaining stuck at the raw material stage—even as global EV demand grows.

Rio Tinto-Enami lithium JV signs binding deal for Altoandinos salar

Enami lithium

The Rio Tinto-Enami lithium JV became official with a binding agreement for Chile’s Altoandinos salt flats. The JV will explore and develop Chile’s largest unexplored lithium deposit, as previously nominated by Enami. The Rio Tinto-Enami lithium JV targets development in the Atacama desert.

Scale and structure

Under the agreement, Rio Tinto will hold 51% and Enami 49%. Both parties will invest a combined $3bn in the project. Rio Tinto will contribute $425mn in cash and non-cash items. The deal is expected to close in the first half of 2026.

Resource potential and timeline

According to Enami, the salar holds over 15mn tonnes LCE. Potential production could reach 75,000 t/yr at full scale. However, the partners have not set an operating start date.

The Rio Tinto-Enami lithium JV focuses on developing and exploring reserves under the Altoandinos salt flats. Meanwhile, the Atacama location underscores Chile’s strategic role in lithium supply. As a result, the JV could become a key source for battery materials once online.

The Metalnomist Commentary

This agreement formalizes a major public-private alignment in Chile’s lithium sector. Scale, location, and shared ownership provide optionality, though timing remains the critical variable for market impact.

Lithium Chile Sells 80% Stake in Arizaro Lithium Project for $180 Million

Arizaro

Lithium Chile, a Canada-based lithium mining company, has agreed to sell its 80% stake in the Arizaro lithium project in Argentina for $180 million. The deal, announced on Thursday, involves a binding letter of intent with a large Asian company operating in mining, renewable energy, and technology sectors. However, Lithium Chile has not disclosed the buyer’s identity.

The Arizaro lithium project, located in Salta province, is a key lithium asset with an estimated 4.12 million metric tonnes (mt) of lithium carbonate equivalent (LCE) and a projected 20-year mine life, according to Lithium Chile's official reports.

Regulatory Approvals Pending

The sale is still subject to government and regulatory approvals, which must be finalized before the transaction is completed. The project is managed through Geo Inversiones Mineras, Lithium Chile’s Argentinian subsidiary.

Lithium Chile operates 11 properties covering over 100,000 hectares (ha) in Chile and approximately 30,000 ha in Argentina, positioning it as a major player in South America’s lithium market.

Strategic Position in the Lithium Triangle

The Arizaro salt flat is part of Argentina’s growing lithium industry, which is crucial to the "lithium triangle", a region comprising Argentina, Bolivia, and Chile that holds approximately 60% of the world’s lithium resources.

The sale of this key lithium asset underscores increasing Asian investment in South America's lithium sector, as demand for battery metals continues to rise in response to global EV market growth.

Chile Advances Direct Lithium Extraction Technology at Altoandinos

Enami

Breakthrough in Lithium Recovery and Sustainability

Chilean state-owned miner Enami has reported promising results from testing direct lithium extraction (DLE) technology at its Altoandinos project, the country’s largest undeveloped lithium deposit. Eight international laboratories participated in the tests, which demonstrated a dramatic reduction in water consumption to 36m³ per metric tonne of lithium carbonate equivalent (LCE) — 55 times less than conventional evaporation pond methods. Lithium recoveries also improved sharply, rising from 42% in traditional processes to an average of 92%.

The DLE method also reduces land use, with a proposed 75,000t per year plant requiring only 10 hectares compared with 1,020 hectares for evaporation ponds. This efficiency addresses one of the key environmental challenges facing Chile’s salt lake ecosystems, which have been under increasing scrutiny from environmental groups and regulators.

Strategic Project Development with Rio Tinto

Enami plans to invest around $3 billion to develop Altoandinos in northern Chile’s Atacama region in partnership with Anglo-Australian mining giant Rio Tinto. The deposit hosts an estimated 15 million tonnes of LCE resources across the Aguilar, La Isla, and Grande salt lakes. Agreements have been secured with six indigenous communities in the region, ensuring local stakeholder involvement in the project’s advancement.

This initiative aligns with Chile’s national lithium strategy, launched in April 2023, which targets increased lithium production while safeguarding fragile salt lake ecosystems. The strategy mandates a transition from evaporation-based extraction to DLE and sets a goal of protecting at least 30% of salt lake environments.

The Metalnomist Commentary

Chile’s successful DLE test results could significantly reshape the global lithium supply chain by lowering environmental impacts while boosting yields. If scaled effectively, Altoandinos could emerge as a model for sustainable lithium production, positioning Chile as a leader in both output and ecological stewardship. The real test will be maintaining these efficiencies at commercial scale while navigating regulatory and community engagement challenges.

Chile Approves 300,000t Increase in Lithium Output for SQM

Chile SQM

SQM Gains Regulatory Green Light Under Conditional Partnership with Codelco

Chile has authorized a significant lithium production increase for SQM, marking a major step in South America's evolving critical mineral strategy. The Chilean nuclear energy commission (CCHEN) approved an additional 300,000 metric tonnes of lithium production through 2030. This brings SQM’s updated extraction quota to approximately 1.65 million tonnes, or 275,000 tonnes per year, a 22% increase over prior levels.

Output Growth Tied to Efficiency, Not Resource Expansion

To fulfill the Chile lithium production increase, SQM must rely on extraction efficiency and advanced brine processing. CCHEN made clear that the miner cannot extract more brine or use more water than permitted under the 2018 agreement. The company’s ability to implement new processing technologies will be key to meeting its quota without environmental overreach.

Conditional Agreement Hinges on State-Backed Partnership

The increased quota is conditional on finalizing a partnership with Chile’s state-owned Codelco by the end of 2030. Should SQM fail to secure the deal, CCHEN will revoke the 300,000-tonne increase, effectively reducing its lithium rights. Under Chilean law, lithium is classified as a nuclear mineral, requiring miners to partner with state entities. While SQM’s current concession expires in 2030, Albemarle’s U.S.-based operation may continue until 2043 — after which it must also enter a public-private CEOL framework to maintain access.

The Metalnomist Commentary

Chile’s decision to allow a controlled lithium production increase reflects its strategy to balance output growth with national oversight. For SQM, securing the Codelco partnership is not just beneficial—it’s essential for long-term survival in Chile’s lithium sector.

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.

Eramet Argentina Lithium Plant Reaches 80% Capacity as Ramp-Up Recovers

Eramet Argentina Lithium Plant

Eramet Argentina lithium plant performance improved sharply in March as the Centenario-Ratones project reached around 80% of its designed capacity. The French mining group said the plant operated near 80% of its 24,000 t/yr nameplate capacity after recovering from February production setbacks.

The Eramet Argentina lithium plant is strategically important because Argentina is becoming one of the fastest-growing lithium supply regions globally. Stronger output from Centenario-Ratones supports the country’s push to challenge Chile’s long-standing lithium leadership.

The Eramet Argentina lithium plant produced 3,720t of lithium carbonate in the first quarter. Output was limited by downstream equipment shutdowns and natural gas supply constraints, but operations normalised in March.

Centenario-Ratones Recovers After February Disruptions

Eramet temporarily shut part of its downstream equipment in February for an extended period. The work was designed to implement improvements and support the ramp-up process.

Natural gas supply constraints also limited production during the quarter. These disruptions show that lithium brine projects depend not only on resource quality, but also on reliable processing equipment and energy supply.

Centenario-Ratones achieved its highest production rate to date in March. This suggests the project is moving closer to stable commercial performance after early ramp-up challenges.

The ramp-up is expected to be completed by July at the latest. If achieved, this would strengthen Eramet’s position in Argentina’s lithium supply chain and improve near-term lithium carbonate availability.

Lithium Sales Highlight Stronger Price Environment

Eramet sold 3,920t of lithium carbonate in the first quarter, generating €57mn in revenue. That implies an average realised price of roughly $16,986/t.

The first-quarter lithium revenue already exceeded Eramet’s lithium revenue for all of 2025. This highlights the impact of stronger lithium carbonate prices and improving sales volumes.

The result matters for project economics. Higher lithium prices can support ramp-up costs, equipment improvements and working capital needs during the early production phase.

For Argentina, Centenario-Ratones adds to a growing pipeline of lithium projects backed by more investor-friendly policies. Successful ramp-up would reinforce Argentina’s role as a major future source of lithium carbonate for battery supply chains.

The Metalnomist Commentary

Centenario-Ratones shows both the opportunity and execution risk in Argentina’s lithium growth story. Strong prices improve project economics, but stable energy supply and processing reliability will decide whether ramp-up targets become sustained production.

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.