Japanese companies to enter Chile’s lithium industry

Lithium must be processed in facilities like this one before it can be used in commercial products. Photo: Doc Searls

SANTIAGO – Japanese companies Toyota, Mitsubishi and Sumitomo, as well as the Korean company Samsung, are currently researching ideas on how to take advantage of an opportunity to open business in Chile’s lithium industry.

On Wednesday, Chile’s Undersecretary of Mining, Pablo Wagner, launched a new initiative called the Special Operations Contract program which he hopes will attract more international investment in the sector.

Under the rules proposed in the program, foreign companies will gain the right to begin operations in Chile, which will involve the exploration and production of lithium. Lithium is used across the world as a component in high technology such as computers, batteries, and car parts.

Currently, Soquimich (SQM) and Sociedad Chilena del Litio (SCL) are the only companies that produce lithium in Chile.

In the past, constitutional regulations in Chile have prevented any mining company from taking ownership of the extracted lithium. The mineral itself has always been national property. Nevertheless, foreign processing facilities are allowed to operate legally on Chilean soil.

“The right to extract around 100,000 tons of lithium over the next twenty years will be auctioned,” secretary Wagner told La Tercera. “We know that if the development of this project is delayed, we’ll lose competitiveness and we could reduce our market share by half.”

Chile could potentially earn $350 million per project, with the first one likely to be completed by the end of the year.

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