Chile seeks to expand into new lithium extraction

Chile is one of the countries with the largest reserves of lithium carbonate in the world, and the second largest lithium producer in the world. Although the industry is facing the pressure from low lithium prices, the government is still looking for new ways to expand lithium mining, including clay. According to the official gazette of Chile on December 5th, the government has decided to open six new lithium mine areas to the private sector, which is the second batch of lithium mine areas that can provide mining license. This is the second group of licensed lithium mines, which need to be negotiated with indigenous communities. Up to now, lithium production in Chile has been concentrated in the Salar area in the northern desert, which includes nearby lithium-rich clay and geothermal resources. The communique said: "The national lithium strategy will promote innovation in lithium exploration and mining technology based on traditional brine mining." As the global price of lithium tends to be stable, Chile believes that investors can look at lithium mining from a long-term strategic perspective to meet the strong demand in the electric vehicle market.