Chile is the world’s second largest lithium producer accounting for nearly one quarter of global lithium production. As per the latest reports, the country is leveraging a multi-faced approach to maximize its lithium production capacity and ensure sustainable growth catering to the dynamic market demands.
Chile’s business plan has been confirmed by Finance Minister Mario Marcel who said,
“Chile will use three different business models to expand its lithium production that it estimates could increase by 70pc by 2030 and 100pc over the next decade”
Moving on, let’s explore and understand the newly launched business model.
Unravelling Chile’s 3-Way Business Model to Ramp Up Lithium Production
According to US Geological Survey data, Chile’s estimated lithium output was 234,000 T of lithium carbonate equivalent (LCE) in the last year. The government plans to ramp up lithium supply to 70% by 2030 with 100% projected growth.
Here’s a breakdown of the 3-way business model:
1. Public-Private Alliances in Strategic Salt Lakes
Chile will establish public-private alliances in two salt lakes deemed strategic: Atacama in the Antofagasta region and Maricunga in the Atacama region. In these alliances, the state will hold a majority share.
2. Promotion of Public-Private Alliances in Other Salt Lakes
Five additional salt lakes, including Alto Andino and Pedernales, will also see public-private alliances. The state will seek the “best agreement” with private partners, either as a majority or minority participant.
3. Private Sector Leadership in 26 Salt Lakes
In 26 other salt lakes, the private sector will take the lead in development. While associations with state companies are possible, they won’t be mandatory.
Consequently, private investors will express interest in these salt lakes through Requests for Information (RFI) in April 2024 and the results will be announced in July.
The selected application will acquire special lithium operating contracts (CEOL). Notably, around 38 salt lakes will be designated as protected areas, adhering to Chile’s commitments under the Convention of Biological Diversity.
Nicolas Grau economy minister, Chile has further commented,
“During this government, we will sign a group of CEOLs in which the private sector will lead production in which the state will not be a major partner,”
Picture: The Lithium Triangle comprising Chile, Argentina, and Bolivia
source: US Geological Survey
Chile acknowledges the significance of empowering local businesses and communities to engage in the lithium value chain actively. Small and medium-sized enterprises (SMEs) are encouraged to participate in exploration, extraction, and value-added processes, promoting economic diversification and regional growth.
Moreover, programs focused on skills enhancement, technology transfer, and entrepreneurship empower local stakeholders to seize opportunities in the expanding lithium market.
Chile’s Bold Move to Nationalize its Domestic Lithium Industry
Chile’s President Gabriel Boric had announced a bold move: the nationalization of Chile’s lithium industry in the last year. The newly launched business model thus fortifies his aim to take control of its massive lithium industry.
President Boric further believes that the nationalization of Chile’s domestic lithium industry is the best way to progress to a developed economy that affirms prosperity, social equity, and sustainability.
Graph: Major countries in worldwide lithium mine production in 2023
source: statistica
SQM and Albemarle to come under state ownership?
Chilean SQM (Sociedad Química y Minera) and US-based Albemarle, the sole producers in the country, conduct their operations in the Salar de Atacama under leases granted by Chile’s state development agency, Corfo. Both these industry giants drive Chile’s economic growth and hold its position as a key global lithium supplier.
With this nationalization move, separate state-owned companies will take control of Chile’s lithium operations from SQMandAlbemarle, without terminating their current contracts. As per reports, SQM’s contract will expire in 2030, while Albemarle’s contract extends until 2043.
Impact on EV manufacturers…
It’s speculative that this economic shift in Chile’s lithium production would be a challenge for EV manufacturers like Tesla Inc. and LG Energy Solution Ltd. This is because they are reliant on SQM and Albemarle for their lithium supplies.
On the other hand, some industry experts hail President Gabriel Boric’s 3-pointer business plan to exploit the new lithium reserves in Chile. They consider this project would automatically increase the demand for lithium from EV manufacturers across the world.
If the predictions come true, Chile will certainly receive tons of applause from the global EV industry. Hence, doubling its domestic lithium production would not be a tough job.
However, we understand from reports that this strategy does not 100% nationalize lithium production in Chile. Rather it highlights a shift towards stronger public-private partnerships, with the state holding a majority stake in forthcoming lithium projects.
Nevertheless, Chile’s action to double its lithium production is vital for careful resource management of this critical mineral and promises a sustainable future.
The post Chile Unveils Latest Business Model to Double Lithium Production appeared first on Carbon Credits.
The uranium price has continued its upward trajectory this week, climbing to 85.67 USD. This represents a solid 2.19% gain over the last seven days and extends the year-to-date performance to a 5.09% increase. After a period of consolidation, the market is witnessing renewed momentum driven by the converging forces of a widening supply deficit and escalating energy demands from the technology sector.
Uranium Price
Market Drivers for the Uranium Price
The primary catalyst behind the recent movement is the intensifying focus on nuclear energy as a critical solution for powering artificial intelligence (AI) infrastructure. As data centers expand globally, tech giants are increasingly seeking reliable, carbon-free baseload power, prompting a reassessment of long-term demand. Recent reports indicate that major utilities are accelerating their contracting cycles to secure fuel inventory, anticipating a squeeze as new reactors come online in Asia and dormant facilities restart in Japan.
On the supply side, geopolitical friction continues to tighten the market. Persistent restrictions on Russian nuclear fuel imports have forced Western utilities to pivot toward alternative suppliers, creating bottlenecks in conversion and enrichment services. Additionally, recent activity from physical funds—most notably a reported purchase of 100,000 pounds of yellowcake by Sprott—has removed spot inventory, adding immediate upward pressure to the uranium price.
Technical Outlook
Technically, uranium has firmly established support above the psychological $80 level. The breakout above $85 signals bullish sentiment, with analysts eyeing the $90 mark as the next key resistance zone. The 30-day movement of 8.27% suggests that buyers are stepping in aggressively on dips, reinforcing a strong uptrend. If the price can sustain a close above $86, it may open the door for a retest of the cyclical highs seen in previous years. However, investors should remain attentive to upcoming production reports from major miners like Kazatomprom and Cameco, which could introduce short-term volatility.
The post Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally appeared first on Carbon Credits.
The Lithium Price surged to a fresh two-year high today, closing at 170,999.81 CNY per tonne. This marks a significant 7.55% gain over the last seven days and extends a powerful year-to-date rally of 44.38%. After a prolonged period of consolidation, the battery metal has broken critical resistance levels, driven by a convergence of aggressive policy shifts in China and renewed supply constraints.
Lithium Price
Market Drivers for the Lithium Price Rally
The primary catalyst for this week’s 7.55% move is the sudden tightening of supply in China’s Jiangxi province. Authorities have canceled 27 mining permits in the hub as part of an environmental "anti-involution" campaign, effectively removing significant feedstock from the market. This supply shock coincided with Beijing’s announcement that export tax rebates for battery products will be cut from 9% to 6% starting in April. This policy shift has triggered a massive "front-running" effect, with manufacturers rushing to secure raw materials and export finished goods before the deadline.
Adding fuel to the fire, industry giant CATL reportedly placed a massive $17.2 billion order for cathode materials earlier this week. This demand signal has forced downstream players to cover spot positions aggressively, exacerbating the squeeze created by the Jiangxi permit cancellations.
Technical Outlook
Technically, the Lithium Price has staged a decisive breakout above the psychological 170,000 CNY level. The 30-day movement of 71.86% suggests the market is in a steep markup phase, fueled by short covering and panic buying. Momentum indicators are currently in overbought territory, but the fundamental supply deficits suggest support remains strong at the 155,000 CNY breakout zone. If the rally sustains, the next key resistance target lies near 200,000 CNY, a level not seen since the market began its correction two years ago.
The post Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally appeared first on Carbon Credits.
The Lithium price continued its explosive start to 2026, surging to 170,999.81 CNY per tonne on Friday. The battery metal has posted a remarkable 7.55% gain over the last seven days alone, extending a massive 71.86% rally over the past month. Year-to-date, lithium prices are up 44.38%, marking a definitive reversal from the surpluses that plagued the market in previous years.
Lithium Price
Market Drivers
Two primary factors are fueling the current rally: a surge in utility-scale energy storage demand and sudden supply constraints in China’s mining hubs.
- Energy Storage Demand Spike: While EV sales remain steady, the demand for lithium iron phosphate (LFP) batteries in energy storage systems (ESS) has outperformed expectations. Analysts forecast a 55% growth in ESS installations for 2026, driven by Beijing’s mandate to double EV charging capacity and grid storage infrastructure by 2027.
- Jiangxi Supply Crunch: On the supply side, Chinese authorities recently canceled 27 mining permits in the lithium hub of Jiangxi as part of an environmental crackdown. This follows the suspension of operations at CATL’s Jianxiawo mine, effectively removing significant monthly tonnage from the market just as downstream battery makers rush to restock ahead of reduced export rebates.
Technical Outlook
Technically, the Lithium price has decisively broken through the psychological resistance level of 150,000 CNY. The steep vertical ascent suggests intense buying pressure, likely exacerbated by short covering from traders who were positioned for a surplus. With the price now firmly establishing support above 160,000 CNY, market participants are eyeing the 200,000 CNY level as the next major target. However, the Relative Strength Index (RSI) indicates the metal is in overbought territory, suggesting potential volatility in the short term as the market digests these rapid gains.
The post Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally appeared first on Carbon Credits.
Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally
Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally
Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally
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