Chile will nationalize the country's lithium industry

Chile will nationalize the country's lithium industry, the world's second largest producer of the metal essential in electric vehicle batteries, to boost its economy and protect its environment, per Reuters.

State copper giant Codelco, the world’s No.1 producer of the metal, will be initially in charge of signing up partners for new contracts.

“This is an opportunity for economic growth that will be difficult to beat in the short term (…) We can’t afford to waste it,” Chile's President Boric said.

The President noted that future lithium licences will be only issued as public-private partnerships with state control, but no details about state shareholding or other ownership arrangements were disclosed.

It follows Mexico’s decision to nationalize its own lithium industry last year.The country is now seeking to create a regional lithium association with Argentina, Bolivia and Chile, per Miningcom.