The Net-Zero Circle

Chile is advancing its National Lithium Strategy by prioritizing six salt flats for lithium exploration and
exploitation, aiming to strengthen its position in the global lithium market. This initiative responds to
the increasing international demand for lithium, a critical component in batteries for electric vehicles
and renewable energy storage.

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Successful Industry Engagement
‍

Between May and July 2024, the Chilean government conducted a Request for Information (RFI) to
gauge interest from national and international companies in lithium projects. The process was met with
enthusiasm, receiving 88 expressions of interest. Of these, 53 focused on 16 salt flats, 28 on uncadastral
deposits (including salt flats which are not in the “official” list of salt flats), and 7 on salt flats or excluded
areas.

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Priority Areas Announced
‍

Following the RFI, the Minister Council of the Lithium and Salars Committee approved six salt flats as
priorities:

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- Salar de Coipasa in the Tarapacá Region
- Salar de Ollagüe and Salar de Ascotán in the Antofagasta Region
- Piedra Parada, Agua Amarga, and Laguna Verde in the Atacama Region

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These areas represent 38% of the total expressions of interest in salt flats, and were selected based on
industry interest, favorable geological conditions, and environmental considerations conducive to
project development.

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Allocation Mechanism and Indigenous Consultations
‍

The Ministry of Mining will grant one Special Lithium Operation Contract (CEOL) for each prioritized salt
flat. For this first 6 flats, the Ministry determined that indigenous consultations are needed, and will
begin promptly in each area. After these consultations and the issuance of a supreme decree outlining
CEOL requirements, public bids will be opened.

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Companies will be assessed on their experience within any stage of the lithium value chain and their
financial capacity to execute the projects.

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Simplified Procedure for Eligible Companies

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To expedite the development of viable projects, a simplified procedure is available for companies or
consortiums that meet specific criteria:

‍
- Experience in any stage of the lithium industry value chain
- Financial capacity to develop the project
- Control of at least 80% of mining concessions within any of the areas (polygons) within the
prioritized salt flats

Interested parties must submit their applications by December 31, 2024, including documentation
proving they meet these requirements, as specified by an upcoming Ministry of Mining resolution.
Upon verification, the Ministry will present a CEOL model to the applicant. If both parties agree, the
contract will be signed after completing the indigenous consultations and issuing the necessary supreme
decree.

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Future Opportunities (Second Round)

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A second list of prioritized salt flats and deposits will be released in the last quarter of 2024, indicating
ongoing opportunities in Chile´s lithium sector.

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Projects Led by Public Companies

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It´s important to note that this allocation mechanism does not apply to public companies. Under the
National Lithium Strategy, state-owned enterprises will lead projects in other significant salt flats:

‍
- Enami will focus on projects in the Altoandino salt flats.
- Codelco will develop projects in the Maricunga, Pedernales, and Atacama salt flats.
‍

Conclusion:

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Chile´s move to prioritize these six salt flats represents an important advancement, as CEOLs will be
granted to private companies for the first time in the country's history. However, there remains a vast
potential yet to be tapped. During the RFI process, interest was demonstrated for 44 salt flats or
deposits that could be exploited, but only six were prioritized in this first round. It is hoped that more
deposits and salt flats will be included in the CEOL assignment process in the next round. As the country
with the largest lithium reserves in the world, Chile has immense potential that must be leveraged for
the benefit of the nation and its inhabitants.

‍

November 13, 2024

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Chile Prioritizes Six Salt Flats For Lithium Exploration In A First Round

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