Lithium Powerhouse Chile Eyes New Lithium Extraction Methods

(Bloomberg) -- Chile, the lithium producer with the richest brine deposits, is looking to expand into new types of extraction including from clay, even as low battery-metal prices squeeze the industry.

The government unveiled six new deposits to be offered as projects to the private sector, it said in a statement Thursday. It’s the second batch of prospective licenses that will proceed to consultations with indigenous communities.

Until now, projects in Chile have been focused on extracting lithium from lakes under salt flats that dot its northern desert, using an evaporation process that’s the lowest cost retrieval method. The latest areas include clays and geothermal deposits, requiring techniques that are yet to be used in commercial production.

“With this, the national lithium strategy will promote innovations in the field of exploration and exploitation of lithium in ways other than traditional extraction of brines,” the statement said.

The areas were identified based partly on expressions of interest from prospective bidders. Chile, the top lithium producer after Australia, is banking on investors taking a long-term view on the strength of electric-vehicle demand as prices stabilize from a sharp pullback.  

The new areas are: Hilaricos; Quillagua Norte, Este and Sur; Maria Elena Este; and Cerro Pabellón.

(Adds context on new techniques from third paragraph.)

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