Chile's ambitious plan to expand its lithium mining sector has attracted significant interest, with seven companies and consortiums submitting bids in the first phase of its special lithium operation contract (CEOL) tender process. This initiative has generated considerable excitement within the industry.

The Chilean government invited proposals for projects targeting six salt flats spread across three regions: Coipasa in Tarapacá, Ollagüe and Ascotán in Antofagasta, and Piedra Parada, Agua Amarga, and Laguna Verde in Atacama. A dedicated working group under the mining ministry's supervision will meticulously review the applications over the next 45 business days.

Among the contenders is a consortium comprising French mining giant Eramet, Chilean chemical company Quiborax, and state-owned copper producer Codelco, as reported by local media. CleanTech, a company that recently completed a pre-feasibility study for developing the Laguna Verde project, has also thrown its hat into the ring.

To secure government approval, private companies must demonstrate expertise in the lithium value chain, possess robust financial resources, and hold at least 80% of the mining concessions in their proposed project area. These stringent criteria underscore the Chilean government's commitment to responsible and sustainable development of its lithium resources.

The Chilean government has launched a second phase of the CEOL tender process, allocating contracts for six additional areas deemed suitable for lithium and mineral exploration. This new round, initially slated to close earlier, has been extended to March 7 to allow interested bidders more time to prepare their submissions.

The newly available areas include Hilaricos and Quillagua Norte in the Tarapacá and Antofagasta regions, as well as Quillagua Este, Quillagua Sur, and María Elena Este in Antofagasta. These regions were identified based on expressed interest from prospective bidders, indicating the growing appetite for lithium exploration in Chile.

Chile, home to the world's second-largest lithium reserves after Australia, is implementing a national strategy launched in 2023 to solidify its position as a top supplier of the battery metal. Despite recent fluctuations in lithium prices, the government is encouraging investors to focus on the long-term opportunities in the sector, emphasizing the metal's critical role in the global energy transition.

Currently, only two companies – SQM and Albemarle – produce lithium in Chile, both from the Salar de Atacama salt flat. Their combined output is projected to increase national production by 7% this year, reaching 305,000 tonnes, according to projections by Chile's copper and mining agency Cochilco.

Chile's vast lithium reserves, estimated at 11 million tonnes as of 2024 by the U.S. Geological Survey, are considered some of the most economically viable for extraction. The Salar de Atacama alone hosts approximately 33% of the world's lithium reserve base. Together with Maricunga, it has been deemed strategic and as such they are reserved to state-controlled partnerships.