Mid-June, Gabriel Boric, president of Chile presented his national lithium strategy. The objective is to make the country a main actor in lithium production, lithium being a key component of electric batteries.
Today, the country produces about 30% of global production, second place behind Australia. And above all, proven reserves represent 45% of total reserves. Details have to be determined but broadly speaking, the government wishes to create a public company of lithium, to develop partnerships with private companies for the whole production cycle.
The project provides for tax-increasing measures concerning mining companies, to be applied beginning of 2024. These additional revenues would help to finance the ambitious program of energy transition.
Since his entry into office, in March 2022, the president has undertaken to boost the country's energy transition, Chile being already at the forefront on this matter in Latin America. Thanks to a common desire from the population and the political world, the country has implemented measures of energy transition since 2010 and has announced its wish to stop using conventional fossil fuels.
In 2015, the country was involved in Paris agreements and committed to reach carbon neutrality in 2050. President Boric endorses the goals of previous governments adding new stages such as the closure of all coal plants by 2030, an increased electrification of uses and the fight against fuel poverty.
All these goals are gathered in a law adopted in June 2022. Beyond these objectives, the law proposes to decentralize climate policy. Climate response measures no longer depend only on the Ministry of Environment but also on other ministries, on regions, on state climate agencies and mostly on the private sector. The law provides a frame for public-private partnerships for the exploitation and production of green hydrogen.
Again, the government has endorsed- the goals defined in 2020 by the previous government: make Chile the first and the cheapest global producer of green hydrogen by 2030 and to be among the three major exporters by 2040.
That being said, although Chile has top quality wind and solar resources, the country does not produce hydrogen on an industrial scale. A restriction is at the centre of debates. To take into account the fragility of ecosystems in both public and private projects.
