In 2014, at the beginning of my second term as Chilean President, we established the National Lithium Commission with the aim of proposing a state policy for the development of this mineral. It was an overarching and technical entity that delivered comprehensive agreements that show continuity in the current proposal.
Among the proposals, agreed upon over five months of discussion, were reiterating lithium’s strategic nature and recommending maintaining its non-concessible nature, as well as strengthening the role of government in its exploitation and public-private generation partnerships to maximize value and social profitability. It was also proposed to strengthen the public facilities related to the salt pans and create a state company for their exploitation.
The recently presented National Lithium Strategy is part of a discussion that has been going on for more than a decade.
Chile is pursuing a responsible and sustainable economic, environmental and social path that focuses not only on Chilean men and women, but also on the salt pans, where national mineral reserves are concentrated and which represent complex and unique ecosystems; Water reserves in the desert and home to ancient peoples and cultures that we must respect and nurture.
Industry development is led by the state and the private sector is involved in the entire production process, ensuring high social and environmental standards, transparency and free competition.
Despite the questions raised by the state’s involvement in the operations, there is greater interest from companies that believe in public-private alliances. Since the national chain presented the National Lithium Strategy, in just two weeks, 46 companies from 12 countries have contacted InvestChile with an interest in getting involved in the different links of the lithium value chain in our country.
The number of interested companies is crucial because it confirms that abroad they understand that Chile, which uses the most widespread modality of exploitation of non-renewable natural resources in the world, wants to be involved in the strategic decisions and the development of the sector and should be in their territory. Additionally, they face concerns that those who falsely attempt to claim that this is a lithium nationalization will go viral.
The strategy envisages adding another modality with public and private associations to develop this activity in joint ventures, in particular to develop new projects.
That’s not the only thing to consider: we need to be smart and avoid the obvious geopolitical risks that lithium can bring on a multilateral scale. It will be strategic to diversify the talks and alliances with actors representing different countries, because in the plurality of negotiations lies our commercial advantage.
We have lithium for everyone, we have more than 60 salt lakes and salt lagoons. We can protect and exploit, we can work with private parties who know the market and have the technology so that they come to Chile and we build a sustainable industry that offers guarantees, because the strategy put forward by President Gabriel Boric understands this extractivism It is not a sustainable project in the long run.
Public-private collaboration is the way to seize this historic opportunity. Specifically, the state will establish a long-term strategic vision for the entire production cycle, from exploration to value creation, in addition to clear regulations to ensure sustainability and reinvestment in the country’s development. For their part, private companies will bring capital, technological innovations and networks to the market.
But we need to act urgently, because the great demand in the world, high prices and our reserves allow us to be optimistic, but we cannot trust ourselves because the mineral is not only found in our area.
As early as 1983 it was determined that lithium was not accessible because it was of great strategic importance for nuclear energy. Thirty years later, it remains of high strategic importance as it has become an important element of the energy transition.
Given the challenges and debates surrounding lithium, it is important to highlight its potential for significant advances in multiple areas. This versatile and valuable energy source has the potential to fuel the transition to a more sustainable and prosperous future. With its diverse applications in battery storage, electric vehicles, renewable energy and innovative technologies, lithium offers us the opportunity to build a cleaner, more efficient and greener world.
Fostering a well-governed and sustainable lithium industry can create jobs and spur research and innovation. By promoting common values, it is possible to balance the use of resources with the well-being of communities and protection of the environment.
Lithium also offers us the opportunity to rethink our energy model and open the doors to a more conscious society committed to preserving the planet. The responsible and fair use of this resource can be the starting point for shaping a future in which progress and sustainability go hand in hand.
Michelle Bachelet She is the former President of Chile and a columnist for EL PAÍS.