Why Chile’s Lithium Mining Is At A Crossroad

Chile contains some of the largest and highest quality lithium brine resources in the world. This soft, white metal is integral to lithium-ion batteries, which power electric vehicles. And with demand for EVs booming, Chile’s vast salt flats have become a vital national resource. Now, the Chilean President Gabriel Boric has released its long-awaited national lithium policy, which requires private companies to partner with the state to further develop the country’s lithium resources, ushering in a new era for the industry. There are two main producers of lithium in Chile, SQM and Albemarle. CNBC visited the Atacama Desert in Chile to see Albemarle’s lithium mine and processing plant to see what is next for the world’s largest lithium producer.

Chapters:
00:00 — Introduction
03:04 - History of lithium in Chile
07:15 - Politics of mining
12:27 - Opposition and concerns
17:34 - What’s next

Produced, Shot and Narration by: Katie Brigham
Supervising Producer: Jeniece Pettitt
Edited by: Amy Marino
Additional Camera: Shawn Baldwin
Animation: Christina Locopo
Translation: David Calderón, Beatriz Bajuelos Castillo
Senior Production Manager: Kathy Mavrikakis

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Why Chile’s Lithium Mining Is At A Crossroad

[stevensmith]

It makes no sense that one commentator suggested that Chile should wait until it had more electric vehicles before making batteries. It should prioritize that part of the supply chain now to get an advantage before others take the lead.

Go Chile!

[ignacioaravale]

As a Chilean citizen it is possible to observe a new great opportunity and the beginning of another mining cycle, which has defined our economy forever, from saltpeter, through copper and now lithium. I only hope that we can find the balance between ecology and a fair international policy (economy), which is where we citizens are affected.

[gamf]

I mean that’s always been the story latin america is “not ready” to move towards downstream activities and never will according to them, but downstream and added value manufacturing transitioning from raw materials to production has been what has developed countries like japan, korea, and now china.

[_moritzperez_]

As someone who lives in the area where the lithium is extracted. We dont want the lithium to be exploited no more. The aninals are dying brcaise of lack of water, the people somwtimes dont have water to shower, wash dishes and other day by day needs. The place is anatural beauty and the mining is destroying it!

[JoeBloggs-evui]

I'm from Australia and refining Lithium is such a polluting exercise, I'm not sure any country does it properly just yet. Caution on going grand scale as what you end up paying may be much more than what the country receives.

[soujirou]

Hopefully Chile will have an efficient mixed state owned private industry that can satisfy growing demand, and also increasing chile's tax coffers. Really beautiful country, one of the best in the nation. Best regards from Pumalal, Chile.

[farner]

Good for Chile. Make those companies pay but reinvest in real infrastructure, schools, hospitals, whatever the people need.

[Arcadax]

Chile has so many crucial minerals! Just hope that these resources can lead Chilean to a better life, they should own the major part of profit from it

[DarkStar]

Sure, Argentina might take over as the world's 2nd producer, but at the cost of practically giving it away. Why, do you ask? Because money will go to the pockets of politicians, and not the Argentinian people. It has always worked that way, and it sill works the same way.

Chile is making sure that the profits stay in the country, and minimizing the impact on the surrounding ecosystem.

[mikekautz]

There is NO way of knowing the harmful effects of these mines. I would say these areas are destroyed forever. It’s ridiculous how we expect to be able to destroy other places but not allow energy creation in the United States of America. This is a worse option than petroleum. These mines are functioning with petroleum power.

[quisqueyanguy]

Chile needs to do whatever it needs to develop its own economy, for the good of the Chilean people. Its funny to see foreigners suggesting that Chile should not develop its own industries, its like a drug trafficker saying that you should not quit drugs because it will be bad for you, their lies are so funny.
Go Chile! Pursue your own destiny!

[nikodechela]

The reporter said thay they didn't see any electric vehicles, but they didn't look for busses. Because Chile has the largest electric buses fleet in the region, more than three times the number of USA

[PeterAJB]

Making downstream products like batteries etc in Chile makes sense from their perspective. Chile has an advantage in reserves (as well as Nickel and Copper... almost all the battery metals). It should abuse that advantage as much as possible to grow jobs in the country. Aim for jobs, not money at this stage.

I think nationalizations and public companies will feed corruption in the rest of the government and build a state that doesn't rely on its citizens for tax revenues but instead on an export oriented industry. This is what happens to petro states and is terrible for the citizens, like in Venezuela.

[KluisL]

i think its great when a main source of income from a certain industry in any country pays its taxes with little to no fraud or corruption its the best way to modernize a nation

[andresalderete]

Problem is not more e cars. The problem is politicians that want a big slide of money. No agreement, no investments authorized. Sadly chilean politicians see the small picture.

[isaacl]

This video came at a great time. I just put 25k into ALB because I think it is oversold. They seemed to be positioned extremely well to handle EV demand for the US and other countries

[hugodiazgarcia]

Congratulations for your excellent analysis on Chile`s lithium mining resources, related with the EVs booming industry.

[Agustin_R]

Excelent report. Interesting and well informed.

Well done!
Saludos de Chile 🇨🇱

[anthonycatania]

Wouldn't there be a good argument made that taking the Salt water from under the earth and having Fresh water Evaporate into the air would actually increase the chances they might get some rain outside the salt flats when the water cools off over greener pastures?

[derred]

Seems like they are looking out for the people over corporations. In that i'm all for it.