Santiago, April 10 - In a break with tradition, Chile will open its annual global copper gathering next week with a full day focused on lithium, underscoring the South American nations intent to widen its mineral base beyond the red metal that has anchored its economy for generations.
The inaugural World Lithium Conference, organised by consultancy CRU and the International Lithium Association, will kick off CESCO Week in Santiago on Monday, signalling that lithium is being elevated to a peer position alongside copper in Chiles strategic discussions.
Market dynamics have helped push lithium into the spotlight. After a prolonged slump, prices of the battery metal have rallied to their highest levels in over two years, driven in part by renewed concerns about oil supplies tied to conflict in the Middle East and by supply-side disruptions. Observers point to the temporary closure of a key mine in China, an export ban in Zimbabwe and falling lithium carbonate inventories as contributors to tighter global supply.
Chile sits among the worlds largest holders of lithium resources, ranking third after Argentina and Bolivia with 13 million tonnes, according to the U.S. Geological Survey. That endowment has attracted attention from major miners and smaller developers alike as the country prepares to offer development partnerships.
With at least five companies, including Rio Tinto, pursuing development rights, Chiles new president, Jos Antonio Kast, has a range of potential partners to consider as the government moves to monetise its deposits under a framework set out in 2023. "The lithium strategy rolled out in 2023 was a pretty good direction, so what we are hoping is the new government takes it up and makes it simpler and faster to award new contracts," said Ignacio Mehech, CEO of CleanTech Lithium.
London-listed CleanTech has been granted a licence to produce lithium but still requires an environmental permit before mining can begin. The company is raising funds to build what it describes as a $750 million mine on the edge of the lithium-rich Salar de Laguna Verde.
Supply expansion is already under way elsewhere: CRU reports that the number of active lithium operations worldwide has doubled over the past four years and is expected to reach close to 80 mines by 2026. That increase in mining activity comes as demand is also rising, led by battery storage applications and continuing - if softer - demand from electric vehicles.
Martin Jackson, head of lithium and battery materials at CRU, noted that demand growth for stationary batteries is helping offset some weakness in the EV market. "Lithium will remain the most competitive technology for its energy density for many years to come," he said.
Price expectations underscore the recent strength: CRU projects lithium carbonate prices in China to average about $22 per kilogram this year, excluding value-added tax, an increase of roughly 135% from the previous year. Investment banks and fund managers are also optimistic about longer-term demand trajectories. Macquarie calculates global lithium demand could expand by more than 20% per year through the end of the decade, driven largely by energy storage needs even as EV growth moderates.
Asset managers see the market setup as supportive of further upside. "Current market tightness suggests a compelling setup for sustained upward price momentum as demand inevitably outstrips delayed supply," said Asad Farid, director of the strategic materials equity fund at J. Safra Sarasin Sustainable Asset Management.
Chiles push into lithium comes amid heightened geopolitical considerations as U.S.-China tensions influence investment decisions in resource-rich regions. Chinas share of global lithium demand has climbed from about 75% to nearly 90% over the last four years, while the Guangzhou Futures Exchange price has become an industry benchmark.
That geopolitical context is already influencing project discussions inside Chile. The country experienced a diplomatic balancing act earlier when it pursued a China Mobile-backed fibre-optic link from the Valparaiso region to Hong Kong despite objections from the United States.
Some industry advisers are urging caution about Chinese investment given the current political environment. "With the current approach of President Trump, perhaps we have to think twice if we go for Chinese investors," said Marcelo Awad, a Chilean mining veteran who is advising Wealth Minerals, a Toronto Stock Exchange-listed lithium company. Wealth Minerals is in talks with Indias state-run Coal India Limited about a potential joint venture and is seeking investors for a $750 million lithium mine.
Others argue Chile should preserve a neutral stance and maintain good relations with all potential partners. "The biggest discussion here right now is how Chile will manage to keep good relations with every country, including China," CleanTechs Mehech said, adding that Chile cannot afford to choose one country over the other.
Implications for markets and sectors
The elevation of lithium to a central role during CESCO Week demonstrates growing market attention to battery metals. Mining companies, energy storage manufacturers, and investors focused on strategic materials are likely to be most affected by Chiles policy and contracting choices. Financial markets tracking miners with lithium exposure may react to developments around licences, environmental permitting and partnership announcements.