Authors: Rehner, J., Lorie, A. & Muñoz, F. (2023)
Abstract: This case report on lithium extraction is of particular importance for three fundamental reasons. First, it stands out because it is the only mining sector in Chile currently receiving significant investment from China. Second, its role in battery production makes it a strategically important resource. Finally, its current role in the discussion about natural resources and national development is evident, as reflected in Chile's new national lithium strategy presented by the government in 2023.
It is important to note that China has shifted its global geopolitical stance in recent years, both in terms of seeking a leadership role and its commitment to decarbonizing its economy, driving electric mobility, and the development of lithium vehicles and batteries.
An oligopolistic market has been observed in the lithium industry, with a strong influence from the Chilean state, although exploitation is in the hands of private companies under contracts with the state that provide them with considerable economic benefits. However, the environmental impacts of this activity are still not well understood, and it can be assumed that they could lead to dramatic destabilization of salt flat ecosystems. This concern would be exacerbated if the numerous and extensive projects proposed by various economic actors come to fruition.
Currently, the institutional framework is undergoing changes, which will significantly impact the configuration of the involved actors. As a result, resistance to these projects is likely to increase, especially from indigenous groups and environmentalists.