SANTIAGO (Reuters) -Chilean officials said on Tuesday they will consider 81 proposals for lithium projects, putting the country on track to surpass the target of four new projects by the end of 2026, even as questions remain about how the process will proceed will go.
Chile in April called for proposals for more than 20 salt flats containing the battery metal, in line with government goals to boost production. It is currently the second largest producer in the world, with production coming from just two companies: Chile’s SQM and US-based Albemarle (NYSE:).
The companies interested in new projects are mainly based in Chile, but also from Canada, Australia, Switzerland, the United States, China, Singapore, England, Germany and India, officials said.
The companies, which officials declined to name, submitted proposals for 16 salt flats in various regions, as well as other types of deposits containing lithium.
The Ministry of Mines said the salt flats that attracted the most interest are those with the best potential for lithium extraction, according to information available from the Chilean Geological Survey.
The government will announce the process for awarding lithium extraction contracts next month and may provide updates on projects in April or May next year, Finance Minister Mario Marcel said.
The Ministry of Mines said in a statement that it looks at several factors when planning the award of contracts, including financial capacity, estimated annual production, planned technology and mining experience.
Some industry players say there is still uncertainty over how the lithium contracts will be awarded and how the government will deal with cases of overlapping ownership rights – given that concessions have already been granted in many areas for metals other than lithium.
SONAMI, Chile’s second-largest mining association, said in a report released Tuesday ahead of the government’s announcement that previous statements from mining officials had raised more questions than answers, especially around overlapping ownership and new technology known as direct lithium extraction (DLE).
“It is not clear how they view these aspects,” SONAMI said.
Marcel said the final list of contenders, after the government received proposals last month, is stronger than expected and could help Chile develop new projects faster toward its 2026 target. President Gabriel Boric’s government ends in March of that year.
Boric has sought to increase the state’s role in the country’s lithium industry, particularly on the Atacama salt flat, which has the highest lithium concentration in the world, while offering less explored deposits to private developers.
