Chilean government seeks stake in lithium mining operations

April 21 (UPI) -- The Chilean president announced plans Friday to require private companies to add the government as a partner in any extraction of lithium, an element in demand given the ongoing pursuit of materials for electric batteries.

Chilean President Gabriel Boric said he was taking the "appropriate steps" necessary to ensure the lithium industry leads to prosperity in the national scientific and clean energy sectors.

Elements such as lithium and cobalt are essential for the batteries that power electric vehicles and other low-carbon technologies, though most of that is found outside of the Western, developed economies.

The International Energy Agency estimates that the Democratic Republic of Congo currently produces 70% of the world's cobalt, used in lithium-ion batteries, while Australia, Chile and China account for 90% of the total global production of lithium.

The IEA estimates that mining accounts for around 15% of foreign investments in Latin America.

"The sector has great development potential, but at the same time is accompanied by a high risk of environmental degradation and adverse impacts on local communities," the agency said.

The Chilean president added that development needs to be carried out in a way that cares for the people as well as the ecosystem. If done correctly, it would be innovative and improve the lives of everyone involved, he said.

"The national lithium strategy will allow us to move faster towards the sustainable transport that our cities need," added Juan Carlos Munoz Abogabir, the Chilean minister of transportation and telecommunications.

Calgary-based Lithium Chile is among the largest operator, laying claim to 110,000 hectares of high-grade lithium reserves in Chile. The company had no statement on the president's plans.