LATIN AMERICA ADVISOR

Energy ADVISOR

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May 12, 2023

What Does Chile’s Plan to Nationalize Lithium Entail?

Chilean President Gabriel Boric announced on April 20 that his government will nationalize the country’s lithium industry in order to protect the environment and boost the economy. Chile’s Atacama Salt Flat is pictured. // File Photo: Chilean Government.

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A

Gonzalo Zeballos, partner, and Nahila Cortes, counsel, both at BakerHostetler: “In Chile, lithium is considered to be a strategic mineral. The Chilean model for lithium extraction has, since 1979, been subject to extensive regulation by the state. Exploration and/or exploitation of lithium deposits under the existing model is thus undertaken either by the state, state-owned companies, administrative concessions or through special contracts granted by the state, except for previously granted concessions. Chile’s new National Lithium Strategy Plan proposes the creation of a national lithium company and will seek partnerships with private entities to develop new projects for the exploration and exploitation of lithium, in addition new methods of adding value to the industry. It must be noted, however, that Chile is not proposing to seize private property or cancel existing concessions. At present, two private companies, SQM and Albemarle, hold contracts for…”

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A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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board of advisors

Nigel Blackaby
Global Head, International Arbitration Group,
Freshfields Bruckhaus Deringer

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

María José Cortés
Head of ESG,
Atlas Renewable Energy

Jeffrey Davidow
Senior Counselor,
The Cohen Group

Analia Gonzalez
Leader, Arbitration & Litigation,
Laitn America, BakerHostetler

Jonathan C. Hamilton
Partner,
White & Case

Raul Herrera
Partner, Corporate &
Securities Practice,
Arnold & Porter

James R. Jones
Chairman,
Monarch Global Strategies

Jorge Kamine
Partner, Corporate &
Financial Services,
Willkie Farr & Gallagher

Craig A. Kelly
Senior Director,
Int’l Government Relations,
Exxon Mobil

Jeremy Martin
Director,
Energy Program,
Institute of the Americas

Larry Pascal
Chairman, Americas
Practice Group,
Haynes & Boone

R. Kirk Sherr
President,
Clearview Strategy Group

Daniela Stevens
Director,
Energy Transition and Climate Program,
Inter-American Dialogue

Doris Rodríguez
Partner,
Hunton Andrews Kurth

Alexandra Valderrama
Director,
International Government
Affairs, Chevron

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