Lithium Mining in Chile
An overview of socio-environmental governance of the sector
This case study is part of a project focused on strengthening supply chain resilience by analyzing the environmental and associated social impacts of critical minerals extraction and processing through country-commodity case studies on nickel, lithium, and copper. It describes Chile’s environmental challenges and associated social issues relating to lithium extraction from brine and examines the country's policy measures for managing them.
Key Messages
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While Chile's institutional framework addresses many of the environmental issues associated with lithium extraction, some ambiguities remain, particularly around the definition of water, which can leave room for inconsistent interpretation and enforcement.
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Brine extraction generally has a smaller environmental footprint than hard-rock lithium mining in terms of energy use and air emissions. However, it occupies more surface area and requires a greater amount of water, which can pose serious risks to local ecosystems and communities.
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As demand for lithium grows, so too does the responsibility of industry and government to uphold and refine the standards that govern mining practices. Ensuring that extraction meets global demand without compromising the natural environment or the rights of local communities remains a challenge.
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In Chile, the National Lithium Strategy signals a commitment to continuous improvement. Whether it will fully achieve its environmental and social objectives remains to be seen.
Chile has the world’s largest lithium reserves and is the third largest lithium producer in the world, producing 56,000 tonnes of lithium in 2025.
The majority (88%) of lithium is used for batteries, given the increasing market for electric vehicles, energy grid storage, portable electronic devices, and electric tools.
In the South American lithium regions, including Chile, lithium is extracted and processed from brine, unlike in Australia, where it is obtained from ore. The conclusions and lessons learned from this case study can be used to guide sustainable brine lithium extraction in Chile as well as other jurisdictions.
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