he nation sitting on half the world’s lithium reserves has a calming message for electric car makers: tougher environmental oversight won’t threaten future production of the metal used to make batteries. Chile’s environmental regulator is working with other agencies to devise a plan for strengthening supervision of mining companies that pump out hundreds of liters a second of lithium-laced brine from beneath the Atacama salt flat. Under pressure from investors and customers, miners are already investing millions to reduce their footprint and they too say that shouldn’t constrain output.
Lithium King
Chile holds half of the world’s lithium reserves
Source: USGS
The initial reaction from companies has been positive, he said, adding they understand Chile has to be competitive not only in production but also in environmental standards.
On the same day as de La Maza spoke, SQM announced plans to cut its use of brine in half and produce carbon-neutral lithium by 2030 — without restraining output. That follows a lost legal battle that forced the Santiago-based company to redo a plan to address over-pumping of brine.
Albemarle, the other big operator in a salt flat that holds almost a quarter of the world’s current lithium supply, has stepped up pumping ahead of a doubling of output.
But the Charlotte, North Carolina-based company says the higher pump rates have proven to be sustainable, with the focus now on sharing data and modeling collaboratively with authorities. It’s also looking at ways to produce more lithium from the same amount of brine and has spent $100 million to maintain freshwater use even after doubling capacity.
An expanding lithium industry isn’t the only demand on the Atacama basin, which also serves huge copper mines, indigenous communities and tourism. The SMA is investigating BHP Group’s Escondida mine for allegedly drawing more water than allowed for almost 15 years, charges Escondida denies.