Chile is the world’s second-largest lithium producer after Australia. The country’s lithium metal production is estimated to have increased by 10.1% to 64,100 tonnes (t) in 2025, primarily supported by higher output from SQM’s Salar de Atacama operations, driven by ongoing capacity expansions.
Chile’s lithium production is mainly lithium carbonate derived from the brines in the Salar de Atacama in the Antofagasta region. SQM and Albemarle are the two major companies producing lithium in the country, underscoring Chile’s highly concentrated production landscape.
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Looking ahead, the country’s lithium output is expected to increase further by 4.9% to 67,300t in 2026, supported by a sustained rise in supply from the Salar de Atacama mine as capacity expansion continues.
From a policy perspective, Chile has undertaken several strategic initiatives to expand the lithium industry. In April 2023, President Gabriel Boric announced the nationalisation of the country’s lithium industry as a strategy to secure the nation’s battery minerals to achieve a green energy transition by 2050.
The policy intends to set up a lithium mining company to work exclusively on the lithium supply chain, under the oversight of CODELCO – the nation’s copper regulating body. The main aim of the policy is to have control over the lithium mined in the nation by limiting the share of private investors (both domestic and foreign).
The new policy invites private investors into the lithium industry only through public-private partnerships (PPP) with the National Lithium Company holding at least 51% share in the ownership. Meanwhile, the government will not terminate contracts of existing players such as SQM and Albemarle until their expiry date, but is open to having a government partnership in those companies. Public ownership could lead to the diversion of potential foreign investments to other nations such as Australia and Argentina.
Regulatory momentum strengthened further in April 2025, when Chile’s Mining Ministry accelerated the National Lithium Strategy by introducing a streamlined application process for special lithium operating contracts (CEOLs) across multiple salt flats, including Agua Amarga, Ascotán, and Coipasa salt flats. The first CEOL was signed by Chile’s state-owned mining company Enami in September 2025, marking an important milestone that will allow the exploitation of the Salares Altoandinos project in the Atacama Region.
In parallel, following a series of reviews, on 27 December 2025, Codelco and SQM announced the establishment of a joint venture named Nova Andino Litio SpA to manage and develop lithium extraction in Chile’s Salar de Atacama through 2060. This PPP aims to boost operational excellence, sustainability and shared value creation.
Over the forecast period, the country’s lithium output is projected to grow marginally with a compound annual growth rate (CAGR) of 2.9% to 87,200t by 2035. This will be due to the planned commissioning of ENAMI’s Salares Altoandinos Lithium Project and Cleantech Lithium’s Laguna Verde in 2027 and Codelco’s Maricunga in 2030.
