Seven bidders compete for Chile’s lithium mining contracts

With increasing global demand for lithium-ion batteries, Chile’s strategic efforts aim to solidify its position as a leading supplier in the global clean energy transition.

Chile has concluded the initial phase of its lithium mining contract awards, attracting bids from seven companies and consortiums. The government is set to announce the successful applicants by the end of March, marking a significant step in its national lithium strategy.

Key Bidding Areas

The first phase of the bidding process focused on six lithium-rich salt flats across three regions:

• Tarapacá Region: Coipasa
• Antofagasta Region: Ollagüe and Ascotán
• Atacama Region: Piedra Parada, Agua Amarga, and Laguna Verde

A government-appointed working group, under the Ministry of Mining, will assess the proposals over the next 45 business days.

Leading Bidders

Among the companies vying for contracts is a consortium formed by French mining firm Eramet, Chilean mining company Quiborax, and state-owned Codelco, according to local reports. Additionally, CleanTech, which recently completed a pre-feasibility study for the Laguna Verde project, is competing in the bidding process.

To secure government approval, bidders must demonstrate expertise in lithium production, possess strong financial backing, and control at least 80% of mining concessions within their proposed project area.

Phase Two Deadline Extended

Alongside reviewing initial applications, the Chilean government has opened a second bidding phase for six additional lithium exploration zones. Originally scheduled to close earlier, the deadline has been extended to March 7, providing prospective bidders more time to prepare their submissions.

The newly available areas include:

• Tarapacá and Antofagasta Regions: Hilaricos and Quillagua Norte
• Antofagasta Region: Quillagua Este, Quillagua Sur, and María Elena Este

These locations were selected based on industry interest and geological potential.

Chile’s Growing Lithium Industry

Chile, home to the world’s second-largest lithium reserves after Australia, is advancing a national strategy initiated in 2023 to become a key global supplier of the critical battery metal. Despite fluctuations in lithium prices, the government remains focused on attracting long-term investments.

Currently, only two companies, SQM and Albemarle, extract lithium in Chile, both operating in the Salar de Atacama. According to projections from Chile’s Copper and Mining Agency (Cochilco), national lithium production is expected to rise by 7% this year, reaching 305,000 tonnes.