Chilean authorities are poised to grant Enami, the state-owned mining company, a crucial operating license for the Altoandinos lithium project by the end of the year. This development marks a significant step forward for Chile's ambitious plan to double its lithium production and solidify its position as a global leader in the critical mineral supply chain.

The Altoandinos project, situated in the country's northern Atacama Desert, has secured the support of all six local indigenous communities. This essential endorsement has paved the way for the necessary permits to be issued. Enami CEO Ivan Mlynarz expressed optimism about the timeline, stating that the Mining Ministry is committed to granting the license by December.

“The commitment of the Mining Ministry is for that to happen by the end of December,” he said in a press conference on Wednesday.

Altoandinos is set to become a pioneering project, undergoing rigorous community consultation and adhering to President Gabriel Boric's public-private model for lithium development. While the state will retain control over projects in Chile's largest salt flats, Enami has been authorized to transfer the management of Altoandinos to a private entity.

Enami has shortlisted four prominent companies as potential developers: Rio Tinto Group, BYD Co., Eramet SA, and Posco Holdings Inc. Additionally, CNGR Advanced Material Co. and LG Energy Solution Ltd. are in the running to provide financing in exchange for a stake in the project's production.

The final decision on the Altoandinos partnership is expected by April or May of next year. In parallel, companies are competing to supply direct lithium extraction (DLE) technology for the project. Chile is actively promoting DLE as a more environmentally friendly alternative to traditional evaporation methods.

Altoandinos, encompassing three salt flats in the Atacama region, is projected to produce 20,000 metric tons of lithium carbonate equivalent per year by 2032, with the capacity to triple this output by 2037. This ambitious expansion plan will necessitate an investment of between $800 million and $1 billion.

As the global lithium market navigates a period of oversupply and price fluctuations, potential partners for the Altoandinos project are cautiously optimistic. They believe that lithium demand will rebound in the coming years, driven by the growing electric vehicle market.

As Chile advances its lithium strategy, the Altoandinos project represents a significant milestone. By fostering collaboration between the public and private sectors, Chile aims to maximize the economic benefits of its vast lithium resources while minimizing environmental impact and ensuring the well-being of local communities.