CHILE · LITHIUM
Key Facts
- —Who Daniel Mas, Chile’s minister of economy and mining, announced the plan at LME Week in London.
- —What Chile plans to open bids for about five new lithium projects in 2027.
- —Numbers The target is output of 700,000 tonnes a year, up from about 300,000, within five to ten years.
- —When Reported Wednesday 21 October 2026; five earlier projects await approval, hoped for early 2027.
- —Why it matters Albemarle, a US firm, is one of Chile’s two lithium producers; tenders may open doors to US companies.
- —Power Index Chile ranks 3rd of 14 in The Rio Times Latin America Power Index, with 63.6 points (October 2026 edition).
Chile plans to invite bids for about five new lithium projects in 2027, aiming to more than double its output of the battery metal. Daniel Mas, the minister of economy and mining, announced the plan at LME Week, the London Metal Exchange’s annual industry gathering, according to reports published on 21 October 2026.
For US readers, lithium is a core ingredient of electric-vehicle batteries, and Chile is one of the biggest sources outside China. Any large supply increase could ease costs for US carmakers and open the door to US firms in the tenders.
A New Round of Lithium Tenders
Mas said the government plans to launch a tender for about five additional lithium projects in 2027. That round follows five projects that are already in the approval process, which he hopes to see approved by early 2027.
The minister said the five pending projects would be run entirely by private companies. He added that Chile is trying to change course so that the private sector leads the mining industry and speeds things up.
The goal is to lift annual output from roughly 300,000 tonnes to 700,000 tonnes within five to ten years, according to Mas. That would be an increase of more than 130%, though the minister did not say which year or product measure the baseline refers to.
Which Projects Are Already in Motion
Chile has been moving several lithium contracts through its special operating contract system, known as CEOL. Chilean mining media report that more contracts are expected to follow.
It is not clear which projects are the five pending ones that Mas described. The minister did not name them in the London remarks.
Where Chile Stands Today
Chile’s lithium comes from brine, the salty water pumped from under salt flats, mainly in the Atacama salt flat. The country is one of the world’s largest lithium producers.
Two companies currently produce lithium in Chile, the Chilean group SQM and the US firm Albemarle. SQM is now in a partnership with Codelco.
What It Means for You
If the plan holds, more Chilean lithium could reach battery makers that supply US automakers over the next decade. Larger supply from Chile may also matter for US efforts to diversify away from Chinese processing.
Investors in Albemarle, which trades in New York, will watch how the tenders are structured. New private entrants could add competition for the two incumbents, though the timing remains uncertain.
What Is Not Known
The minister did not publish the names of the five projects to be tendered in 2027, nor the dates, bidding rules or contract terms. The exact stage of each pending approval and the final decision dates are also unclear.
The 300,000 tonne baseline and the 700,000 tonne target were given without a stated year or product measure, such as lithium carbonate equivalent. Reaching the target will depend on approvals, financing, water access, community consultation and market prices.
No company has been reported to have signed a new deal as a result of the London events. Responses from SQM, Albemarle, Codelco, bidders and environmental groups were not available.
Frequently Asked Questions
What did Chile announce about lithium?
Minister Daniel Mas said Chile will tender about five new lithium projects in 2027. The aim is to raise annual output from about 300,000 to 700,000 tonnes within five to ten years.
Who produces lithium in Chile today?
Two companies currently produce it, the Chilean group SQM, now partnered with state-owned Codelco, and the US firm Albemarle. Mas said the government wants more private companies involved.
Why does Chile want more private companies involved?
Mas said the government wants the private sector to lead mining and speed things up. He said five pending projects would be run entirely by private firms.
Does this affect US buyers of lithium?
Possibly, in the long run. More Chilean supply could widen choices for US battery and car makers, but no projects, dates or contract terms have been published yet.
Sources: Redimin; La República; Minería Chilena; Reporte Minero.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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