Atacama indigenous peoples seek participation in Codelco-SQM lithium venture

For Atacama’s Indigenous communities, being at the table is not just symbolic—it’s a critical way to ensure that economic growth does not come at the cost of environmental degradation or cultural erasure.

Chile is accelerating its national lithium strategy through a key alliance between state-owned Codelco and private mining company SQM, aimed at increasing the production of this critical metal for electric vehicle batteries by up to 33% by 2060.

However, the Indigenous communities of the Atacama Desert—home to the world’s largest lithium reserves—are demanding greater participation in decisions that affect their ancestral territories.

Representatives of the Lickanantay people are currently in discussions with both companies to define a governance model that would grant them an active role in the new joint venture. Their goal is to influence key matters such as environmental protection and water management, a crucial issue in one of the most arid regions on the planet.

The Indigenous communities have clarified that they are not seeking control over company operations, but rather a meaningful voice in processes that directly impact their environment. One option being considered is the creation of permanent channels of dialogue with decision-makers, including representation on the board of directors.

The agreement is seen as essential to ensuring the project’s social and environmental sustainability. An international audit had already highlighted the need for SQM to rebuild trust with local communities after years of tension and mistrust. Current requirements include the monitoring of water usage and the prevention of ecological damage.

The negotiation process forms part of President Gabriel Boric’s plan to position the State as a central player in the lithium industry, with a focus on sustainability and respect for Indigenous peoples. However, communities remain concerned that a potential change in government in 2026 could alter the current pro-Indigenous policy direction.

For now, talks between the companies and the communities are expected to continue over the coming months, with the aim of reaching an agreement before the new joint venture becomes operational. For the communities, having a seat at the table is a way to ensure that economic development does not come at the expense of their rights or their environment.