Chilean Government’s Lithium Industry Plan

June 1, 2023

The announcement by President Gabriel Boric on April 20, 2023, that private companies will need to partner with the state to extract lithium is the latest sign that the Chilean government is attempting to increasingly control Chile’s mining industry.1 Chile is currently the second largest producer globally and holds the world’s largest reserves of lithium.2 There is currently no immediate substitute for lithium on a commercial scale for the electrification of mobility and the plan, if voted into law, could have a dramatic impact on the supply of a mineral that is critical for the world’s energy transition.

1: Cecilia Jamasmie, “Chile to nationalize its lithium industry,” (April 21, 2023),
2: “Mineral Commodity Summaries 2022 – Lithium,” (May 1, 2023),