Lithium is one of the most coveted minerals today since it is used in the manufacture of batteries for electric vehicles, computers, smartphones, and other digital devices.
Chile, Bolivia, and Argentina are some of the countries with the largest reserves of this mineral.
On April 20th, the president of Chile, Gabriel Boric presented the “National Lithium Strategy”, with the aim of increasing Chilean wealth in this matter, and at the same time respecting environmental guidelines.
The world demand for these resources is increasing, so the idea is that this industry is developed by the State together with the private sector.
The state will provide clear regulations for the exploration and exploitation of the mineral, and the private sector will provide the technology and capital.
The state will act through the state copper company, Codelco, to negotiate with private companies, including SQM, a Chilean company, and Albemarle, an American company. The good thing about the fact that one of the private companies is also Chilean, is that the knowledge stays in the country and the decisions are also made here.
For the development of the country and the redistribution of wealth, this industry represents a big opportunity, because it could help finance public investments, mostly in the health and education sector.
At this moment, there’s a political debate about this Government Strategy, because the right winged parties are not on board with the idea that the State will be involved in a major way in the Lithium Strategy. And they are the majority in Congress. Also, we continue to be in a political debate regarding a new Constitution. So we’ll have to wait and see how this idea will develop with time.
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