Global Overview of the Lithium Market and Opportunities for Chile

Lithium is a metal with a highly promising outlook for future global demand. 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. However, Chile’s lithium production process is significantly advantaged by the exceptionally high lithium concentration in the Salar de Atacama—the highest in the world—and the region’s high solar radiation, which enables the most cost-effective solar evaporation process globally. Despite these comparative advantages, Chile’s lithium production has stagnated in recent years. This stagnation can be attributed to the need for more flexible legislation surrounding the lithium industry or an increase in the number of CEOLs (Lithium Exploitation Contracts) to regain its position as the leading global producer of lithium. Furthermore, increased investment in national universities and research centers is essential to foster the development and implementation of new, clean technologies for future projects. 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.