He President Gabriel Boric announced, through national chain, the National Lithium Strategywhich stands out, among other announcements, the creation of a National Lithium Company and the objective of turning the country into the main exporter in the world, as it already did with copper.
“The potential we have is enormous,” said the President, also adding that this national policy will be “a crusade” to study the salt flats, such as the Atacama, which he mentioned several times in his speech. With this, “protected areas where no tasks will be installed” will be delimited. Others will also be exploited, such as Maricunga.
“Chile has the largest lithium reserves in the world, a mineral that, being in energy storage batteries, electric cars and buses, is key in the fight against the climate crisis and an opportunity for economic growth that is unlikely to return. to repeat in the short term. Together with the development of green hydrogen and the knowledge that is generated in our universities and communities, it is the best chance we have to move towards a sustainable and developed economy. We cannot afford to waste it,” he added .
“Our challenge is for our country to become the main lithium producer in the world. At the same time that we protect the diversity of the salt flats,” he said.
The five pillars of strategy
In his speech, the President mentioned Eduardo Frei Montalvaalready Salvador Allende to inform that this strategy contemplates five main pillars. In summary, these strategies are the creation of the National Lithium Company, public-private collaboration, the use of new lithium extraction technologies that minimize the impact on ecosystems, that the strategy will be carried out with the participation of the surrounding communities. the tasks, and that they will promote -in addition to extraction and preservation- the generation of products derived from lithium.
The first milestone in this process, in this sense, will be “a direct conversation between the council of Atacameño towns and myself. There is no possible development without the community.” Regarding the national lithium company, Boric said that in addition to extracting it, he will seek to create “high-value” products.
Regarding the current contracts for the exploitation of lithium, the President said that they will be respected “in full” and “Codelco will be our representative to have a state participation before the expiration of the current contracts.”
The income for the country that is produced with the export of lithium will be used for the citizens, mainly for the regions, said President Boric. “It is good news for the country, boys and girls. It is more wealth for Chile that will be able to finance new schools, hospitals, police stations,” he assured. “Police stations” was a word that the President used several times in his speech, just at a time when the country’s security is in jeopardy with the various acts of violence that have occurred in recent months.
Together with the creation of the national lithium company, a Technological and Public Research Institute of Salares will be created, which will be located in Antofagasta. Said institute will be operational in the second half of this year.
“We are going to promote not only the extraction, not only the preservation, but also the generation of lithium products with added value. Thus, the scientific and technological innovation associated with this task will allow us to move towards a development that is lasting, more complex and greater diversity,” he said.
Public and private alliance
Boric also mentioned that for exploitation, as is the case with copper, there will be alliances between public organizations and private companies. However, in this design, the Chilean State will always have the majority in the exploitation, while the minority part will be for the companies, in a “50+1” format.
In addition, he mentioned that all infrastructure “has to be built in response to the climate crisis and, therefore, guaranteeing the least possible environmental impact on these ecosystems.”
“From the State, we will make a profound difference in the human and technological development of the country, if we do it well. And I have no doubt that we can do it well,” Boric pointed out.
Nod to tax reform
In the final part of the speech, Boric said that the country will be responsible “with public finances. Therefore, following the recommendations of the Autonomous Fiscal Council, a rule will be generated that defines an expense threshold for lithium revenues. In this way , the transitory part of the lithium income will be saved to ensure long-term financing of social, technological and productive investments, thus promoting the sustainable and inclusive development of the country over time.”
“Consequently, and this is important, given the nature of the lithium income, they cannot replace a necessary Tax Reform for the purpose of financing permanent social expenses such as the increase in the Universal Guaranteed Pension or the National Care System For this reason, I call on all political actors to agree on this important issue, as I pointed out this morning at Enade,” he added.
