Why is Chile pursuing a lithium-ion battery industry?

However, Chile’s lithium extraction consumes large amounts of water, which threatens local ecosystems and indigenous communities. Chile is pushing for environmentally responsible lithium extraction and water-efficient technologies. It aims to build a domestic lithium-ion battery industry instead of exporting raw lithium.

How does Chile produce lithium?

Its industrial processing relies on two primary methods: production from brines through solar evaporation ponds and production from rock sources via flotation, roasting, and subsequent leaching. Chile is currently the world’s second-largest producer of lithium, surpassed only by Australia.

What is Chile's national lithium strategy?

Chile’s National Lithium Strategy addresses this challenge and assumes responsibility for ensuring economically, environmentally, and socially sustainable progress in the development of the lithium industry.

How does lithium storage work in Chile?

Chile holds around 36% of global lithium reserves in the Atacama Desert. Lithium-based battery energy storage systems store excess renewable energy. This makes it available even during low production periods. Storage solutions help reduce grid instability and energy curtailment.

Can Chile be a key player in the global lithium market?

By addressing these challenges, Chile has the potential to solidify its role as a key player in the global lithium market while promoting sustainable industrial practices.

Does Chile have a battery industry?

However, despite lithium being a strategic and fundamental component for battery manufacturing, it is also necessary to have graphite, manganese, nickel, and cobalt, all elements in which Chile currently lacks a significant industry and which together represent a greater cost in battery production .