Chile: World leader in lithium bets on sustainability in new mining projects
Chile, considered the world’s largest producer of lithium, continues to establish itself as a key player in the global battery sector. The country is home to one of the largest lithium reserves, especially in the Salar de Atacama, making it a hub for lithium mining projects. However, in recent years, concerns about the environmental impacts of lithium mining have led Chilean authorities to review their policies to ensure that the extraction of the mineral is more sustainable.
One of the most important projects in Chile is SQM’s Lithium Project in the Salar de Atacama. This project has been key to the global supply of lithium, which is mainly used in the manufacture of batteries for electric vehicles. The Chilean company SQM, in collaboration with other large firms, is implementing advanced technologies to improve extraction efficiency and minimize the use of water, a scarce resource in the Atacama Desert region. The use of solar evaporation in salt flats to extract lithium has been one of the key practices to reduce the environmental impact in the region.
However, despite its progress, lithium mining in Chile faces some challenges. Sustainability remains a central issue in political and social debates. Environmental organizations have expressed concern about the negative effects of lithium mining on fragile ecosystems and local communities. This has led the Chilean administration to review its permitting policies for lithium projects, implementing stricter regulations and promoting greater community participation.
In this context, investor interest remains strong. The growing demand for electric vehicles and electronic devices, driven by the transition to a low-emission economy, makes lithium projects highly attractive. In addition, the focus on sustainability in Chile, through the adoption of clean technologies and responsible processes, has generated confidence in investors seeking a balance between profitability and environmental responsibility.
Sources: SQM, World Lithium Association, Chilean Ministry of Mining.
Investor interest remains strong. Growing demand for electric vehicles and electronic devices, driven by the transition to a low-emission economy, makes lithium projects highly attractive.
