Chile’s Lithium Revolution: State Power Meets Private Capital in Historic Deal

Chile’s government and its Empresa Nacional de Minería (ENAMI) signed the country’s first Contrato Especial de Operación de Litio (CEOL) on September 5, 2025, to develop the Salares Altoandinos basins in Atacama under state-led management.

This agreement entrenches public control, leverages ancestral community rights, and deploys cutting-edge extraction technology, marking a shift in Chile’s lithium strategy.

President Gabriel Boric opened the ceremony by stressing that the contract blends politics, community knowledge, and national technical expertise.

He said the process transforms production methods and ensures that profits benefit Chileans directly. Mineral resources now fall under stronger state oversight to secure fiscal contributions and social investments across Chile’s regions.

The CEOL runs until December 31, 2060, and divides into exploration, construction, exploitation, and closure phases. Exploration may extend up to twelve years, construction up to seven, and exploitation through the contract’s end.

ENAMI can forge public-private partnerships to mobilize technology and funding while maintaining national control over project direction.

ENAMI will develop four salt flats—Aguilar, Grande, La Isla, and Los Infieles—where recent studies raised resource estimates by 28 percent.

Salares Altoandinos now holds an estimated 3.05 million tonnes of lithium brine resources, boosting Chile’s total reserves above 14 million tonnes.

Consultants Amphos 21 and Montgomery & Associates validated these figures, adding credibility to the updated resource models. Chile aims to produce 75,000 tonnes per year of lithium carbonate equivalent (LCE) at full operation.

That level will solidify Chile’s role in the global battery supply chain and balance rising demand from automakers and grid storage developers.

The project could generate over US$15 billion in tax revenues across its lifespan. Those revenues can fund hospitals, schools, and infrastructure projects nationwide.

ENAMI plans to use Direct Lithium Extraction (DLE) technology to recover over 90 percent of lithium from brine and slash water consumption by 97 percent compared to traditional evaporation ponds.

This method suits Atacama’s fragile, water-scarce environment. ENAMI’s sustainability plan also mandates mine closure procedures that follow strict environmental standards, preserving local ecosystems.

This government-driven model departs from previous privately dominated concessions. By leading development, Chile prioritizes strategic resource sovereignty.

Communities benefit from revenue sharing, job creation, and respect for ancestral land claims. The CEOL signals a new era where Chile aligns economic growth with social inclusion and environmental stewardship.

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