Why is Chile pursuing a lithium-ion battery industry?

However, Chile’s lithium extraction consumes large amounts of water, which threatens local ecosystems and indigenous communities. Chile is pushing for environmentally responsible lithium extraction and water-efficient technologies. It aims to build a domestic lithium-ion battery industry instead of exporting raw lithium.

Is lithium a critical energy resource in Chile?

The global and regional significance of lithium as a critical energy resource is examined. The evolution of Chile's lithium industry is analyzed, emphasizing two recent key policy initiatives: the 2015 National Lithium Commission report and the newly launched national lithium strategy. The salient features of these initiatives are outlined.

How does lithium storage work in Chile?

Chile holds around 36% of global lithium reserves in the Atacama Desert. Lithium-based battery energy storage systems store excess renewable energy. This makes it available even during low production periods. Storage solutions help reduce grid instability and energy curtailment.

What is Chile's new lithium strategy?

On April 20, the Chilean government announced its new lithium strategy, which plans to give control of the country’s lithium industry to the state.

Can Chile be a key player in the global lithium market?

By addressing these challenges, Chile has the potential to solidify its role as a key player in the global lithium market while promoting sustainable industrial practices.

Does Chile have a battery industry?

However, despite lithium being a strategic and fundamental component for battery manufacturing, it is also necessary to have graphite, manganese, nickel, and cobalt, all elements in which Chile currently lacks a significant industry and which together represent a greater cost in battery production .