Mr. Principal:
In March the National Strategy to create the National Lithium Company would be presented. For this, the Ministers of Mining and Economy were summoned to the Chamber of Deputies to present on the actions that the Government is carrying out on the subject, however, they did not attend.
There is concern that a national company is not the most agile mechanism. Alternatives such as exploitation contracts similar to the existing ones, concessions or the formation of companies with public-private participation are today all valid options in the face of the country’s regression with respect to world competition. According to the latest study by the investment bank JP Morgan, Chile would fall from second to fourth place in lithium production by 2030, after Australia, China and Argentina.
What the State definitely cannot do is continue postponing exploitation. Lithium increased its value by 500% in 2021 and it is projected that by 2050 the demand will multiply by 10. In 2022 the Chilean State received more than US$5,000 million for the exploitation of this mineral, close to of 1.6% of GDP and 6.4% of all tax revenue last year.
Markets are dynamic and competition is high, which is why it is very important that Chile have a long-term national lithium policy as soon as possible that has the necessary flexibility to adjust, that considers the need to strengthen the value chain locally and promote research and development around the lithium industry.
Dr. Lorenzo Reyes Bozo
Dean Faculty of Engineering. AU.
