Chile to nationalise lithium mines

Santiago – Chile, the world’s second-largest lithium producer, will soon nationalise its mines. Chile announced the move to strengthen the country’s economy and protect the environment. It is claimed that this decision will directly affect the production of electric vehicles. After Mexico, Chile is also said to have taken steps towards nationalising lithium mines, which will benefit Argentina the most.

Chilean President Gabriel Boric has announced the country’s stance on lithium. ‘This is a great opportunity to build a strong and developed economy and it cannot be wasted,’ President Boric said. Chile’s president has announced that lithium mining contracts will now be awarded only to government-controlled public-private partnerships.

President Boric expressed hope that the previous contracts would not be discarded, but the government will also be included in these contracts. It is claimed that the decision could hit the world’s top two lithium mining companies, Albemarle and SQM. But this has led to talk of the world-famous lithium triangle breaking apart.

At the same time, Western analysts point out that lithium-rich countries are adopting an independent policy. Last year, Mexico, which has the largest lithium reserves, nationalised its country’s mines. Since then, Chile has also nationalised its mines. As a result, the media claims that demand from Argentina, which has lithium reserves, will triple in the next two years. But it’s also likely to hamper the production of batteries needed for electric vehicles.

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