Chile’s ENAMI plans to begin first lithium project by 2028

Chile’s state mining company ENAMI aims to commence construction on its inaugural lithium project in the country as early as 2027 or 2028, according to company chief Ivan Mlynarz. This move is part of the government’s endeavor to amplify its role in the production of the battery metal.

ENAMI, which processes copper for local mining firms, has been entrusted with spearheading the government’s initial forays into lithium alongside the state mining giant Codelco. Chile ranks as the world’s second-largest lithium producer, a crucial material for most batteries powering electric vehicles (EVs). The global shift towards EVs has sparked a frenzy among automakers and nations to secure the ultralight metal.

This month, ENAMI initiated a search for a private partner to provide financial backing or operational support for the project at three salt flats known as the Salares Altoandinos in Chile’s northern Atacama region. Interested parties must register by June 7, kickstarting a selection process ENAMI aims to complete by March 2025.

“At present, we are developing the engineering aspects so that the project can begin construction around 2027 or 2028,” Mlynarz stated in an interview on Wednesday, noting the Finance Ministry’s objective of launching new lithium production in Chile by 2030. “We envision partners who will see this through to the end…partners with the financial muscle to guarantee resource availability and the experience to develop such a project.”

Currently, only Chile’s SQM and the US-based Albemarle produce lithium in Chile, which boasts the world’s largest reserves of the white metal. ENAMI expects to eventually produce around 60,000 metric tons of lithium annually at Altoandinos, Mlynarz said, though ongoing exploration will provide more precise estimates regarding lithium concentration and other data.

ENAMI will consider the available lithium quantity and required investment to determine its stake size in the project, spanning nearly 30,000 hectares of salt flats known as Aguilar, La Isla, and Grande.

Last year, French lithium company Eramet acquired mining concessions in the same salt flats, aiming to secure approvals for lithium extraction. Mlynarz noted that a potential arrangement with Eramet would depend on the lithium extraction method employed.

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