Chile Grapples With Lithium’s True Cost

The White Desert’s Green Curse: Chile’s Lithium Dilemma

Raquel Celina Rodriguez treads carefully across the Vega de Tilopozo, a specific area within the Atacama salt flats in Chile. This wetland area, which once had a reputation for its artesian wells, has become a dry and fractured landscape. The depressions scarring the terrain, she indicates, were formerly pools of water. She remembers a period when green covered the Vega entirely. The vegetation was once so dense it concealed the local wildlife. Now, the land is barren. She gestures at some llamas nearby, a reminder of more verdant times. Her family had a long tradition of raising sheep in this area. That way of life grew more difficult as weather patterns altered and rainfall ceased, which diminished the available pasture. The situation, however, took a drastic turn for the worse when the water started to disappear.

The Lithium Fever

The culprits are corporations that extract lithium. The globe's most significant lithium deposit is located underneath the Atacama Desert. Lithium, a lightweight silvery metal, is a critical ingredient for batteries used in electric vehicles, portable computers, and units for storing solar power. The worldwide pivot to greener forms of energy has caused the appetite for this metal to surge. Data from the International Energy Agency shows that worldwide lithium use was around 95,000 tonnes in 2021. That number grew past 205,000 tonnes by 2024, representing a significant increase. Forecasters see this figure climbing above 900,000 tonnes by the year 2040. The electric vehicle sector is the primary force behind this expansion. For those living nearby, this increased activity has also meant a rise in environmental damage.

A Question of Scarcity

This huge requirement prompts a critical inquiry: is the worldwide push to eliminate carbon emissions inadvertently causing a different ecological crisis? The local flora, fauna, and the wider ecosystem are showing signs of stress. After Australia, Chile holds the position of the world's number two lithium producer. The administration of President Gabriel Boric introduced a national plan for lithium in 2023. This policy seeks to accelerate output by bringing the sector under partial state control while also promoting investment from private companies. The country's finance minister had suggested that output could see a seventy percent rise before 2030. However, the ministry that oversees mining has stated that no formal target exists. Within the current year, a significant forward step for this strategy is expected.

A Controversial Alliance

Antitrust authorities have given a preliminary green light to a proposed joint operation involving the private company SQM and Codelco, the state-run mining enterprise of Chile. The partnership is a cornerstone of President Boric's agenda, aimed at strengthening state oversight of the mineral while boosting its extraction. The state entity will hold a controlling interest of fifty percent plus one share. The project is expected to begin this year, awaiting final consent from Chile's commission for nuclear energy and, significantly, from Chinese regulators. Under the agreement, SQM will oversee the work until 2030, at which point Codelco will assume leadership until 2060. The agreement permits the removal of at least 2.5 million metric tonnes annually of what is termed lithium metal equivalent.

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A Plan Under Scrutiny

Even with this progress, the deal between Codelco and SQM is drawing considerable criticism. Critics contend that the terms are not advantageous for the Chilean state. While Codelco will have a controlling interest, certain analyses indicate it stands to gain only a minor portion, possibly just twenty percent, of the revenues during the initial years. A dedicated commission in the lower chamber of congress is currently examining the contract's details. The agreement's longevity is also politically precarious, as forthcoming elections in November could usher in a new government with different priorities. Candidates from the centre-right and right-wing, who are ahead in the polls, may not support the nationalisation plan so strongly.

Indigenous Rights and Resistance

The enterprise is also confronting legal hurdles and strong resistance from nearby communities. A lawsuit has been initiated by the Colla Pai Ote indigenous group to nullify the deal. They assert it did not adhere to international agreements that mandate proper consultation with native peoples regarding administrative actions affecting their rights and lands. ILO Convention 169, a framework ratified by Chile, requires consultation with impacted communities. Both firms have said they are in talks with local organisations to establish a governance structure that would grant them greater sway and ensure the venture adheres to its environmental commitments.

The Price of White Gold

The government of Chile portrays these initiatives as part of the worldwide campaign to combat climate change, while also generating state revenue. The primary extraction method involves pumping saline water from under the terrain of the salt flats. This brine is then transferred to expansive, shallow ponds where the water evaporates. This technique uses immense quantities of water within an area already suffering from drought. The method is cost-effective and efficient, aided by the high evaporation rates in the Atacama, which gives Chile a competitive advantage when lithium prices fall. However, the ecological toll is becoming undeniable.

Disappearing Lagoons and Birds

A biologist from the indigenous community in the region, Faviola Gonzalez, has her work based in the Los Flamencos National Reserve. This sanctuary is situated in the heart of the Atacama Desert. It encompasses wide salt flats, wetlands, and lagoons that support around 185 bird species. She has been tracking the ecological shifts in this territory. The lagoons, she observes, are getting smaller. A decline in the breeding success of the famous flamingos has been noted. The lithium extraction process, she says, disrupts the microorganisms in the water that birds depend on, which has a ripple effect on the complete food web. She gestures toward a location where chicks from the flamingo population were born this year, a first in fourteen years. She connects this minor breeding achievement to a small cutback in water pumping that occurred in 2021.

An Ancient Water Source

The central problem is replenishment. The subterranean water that sustains this habitat originates in the Andes mountains. This ancient water source contains a high mineral content and recharges the aquifers at a glacial pace. Gonzalez points out the basic disparity: when large volumes of water are removed and only a small amount flows in, there is little capacity for the Salar de Atacama to recharge itself. The harm goes beyond the water levels. In certain zones, the native vegetation is perishing. An American-based organization, the National Resources Defense Council, published a report in 2022 which found that on land leased by SQM for mining, approximately 30 percent of the indigenous carob trees were exhibiting signs of death back in 2013 because of the mining.

An Exhausted Ecology

This issue is not confined to one or two spots. In a 2022 report, James J. A. Blair, an assistant professor at California State Polytechnic University, noted that extracting lithium adds to "conditions of ecological exhaustion". He cautioned that the activity might diminish freshwater access for wildlife, plants, and people. Still, he conceded that establishing a definitive causal link between every environmental change and mining activities is challenging. But for the inhabitants of the Salar, the proof is in the parched ground and the receding water.

The Inevitable Harm of Mining

Mining operations invariably cause some environmental harm. Karen Smith Stegen, who is a professor of political science in Germany, researches the global consequences of extracting lithium. She notes that it's difficult to picture any mining activity that is free of negative consequences. The fundamental problem, she believes, is that companies could take action to lessen the impact but frequently neglect to do so proactively. These corporations, she insists, should have brought the local populations into the discussion from the very start. For instance, carrying out thorough social impact studies before extracting brine could have foreseen the consequences for water, animals, and human settlements.

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A Pledge for New Technology

In their defense, the mining corporations claim that they are now paying attention. SQM, a dominant force in the area, states it is collaborating with local groups to grasp their worries. Valentín Barrera, who manages sustainability for SQM's lithium division, confirms the company is conducting the required environmental assessments. He is adamant that more of the metal is needed to power the energy transition for the world and Chile. The company is testing new methods to tackle the significant water use. If these pilots are successful, the technologies could be implemented throughout their Atacama facilities. The aim is to boost output while lessening the dependence on brine pumping.

The Promise of Direct Extraction

Direct Lithium Extraction, or DLE, is one of these new approaches. DLE systems are designed to pull the metal from brine without needing huge evaporation ponds, which could greatly reduce water use. Other trials are exploring ways to collect water vapour and reintroduce it to the ground. Barrera asserts they are evaluating multiple paths to see which is most effective for boosting output while cutting brine pumping by half or more. A trial in Antofagasta, he says, has already recovered a volume of water exceeding one million cubic metres. The firm intends to begin deploying this new technology in 2031.

A Laboratory of Scepticism

The residents who face the daily realities are still unconvinced. Faviola Gonzalez perceives the Salar de Atacama as a massive experiment. She is concerned about how the delicate ecosystem of the salt flats will respond to these new methods and the reintroduction of brine. There's a tangible concern that their ancestral territories are being used as a testing ground for science without their informed agreement or a clear picture of the future dangers. The same anxiety is felt by Sara Plaza, whose relatives were also livestock farmers in the same locality as Raquel Rodriguez. She recalls that water levels began to fall back in 2005, but the extraction by the mining firms never ceased.

A Future Without Water

Talking about what's to come moves Sara Plaza to tears. The lithium supply, she is aware, is finite. The mining operations will cease. She worries about what will happen to the residents then, with no water or agriculture. How will they survive? She admits that she might not be around to witness the full consequences, but her descendants will. She is convinced that the mining operations have removed an excessive quantity of water from an environment already beleaguered by climate shifts. The anguish is profound. While the corporations provide the community with a small amount of money, she would rather have none. She would choose a life sustained by nature with enough water to thrive.

The Heart of the Community

Sergio, a leader in the Peine community, shares these feelings. His town, he says, has had to overhaul its whole drinking water infrastructure, electrical network, and water treatment plants as a result of the deficits. He acknowledges that shifting climate patterns are a factor but is resolute that the primary damage has been from extractive operations. Since the industry's arrival in the 1980s, he notes, vast quantities of both water and brine, totaling millions of cubic metres, have been extracted at a rate of many hundreds of litres every second. He perceives a great separation from the nation's leaders. "Decisions happen in Santiago, the capital, a great distance from this place," he remarks.

A Seat at the Table

If President Boric is genuine about addressing climate change, Sergio argues, he has an obligation to include the indigenous groups who have inhabited these lands for thousands of years into the conversation. He understands the importance of lithium for the energy revolution but contends his people must not become a "negotiating tool" in these wider plans. His group has achieved some financial gains and monitoring rights with the firms but is concerned about any further increase in production. He thinks searching for less impactful technologies is a good thing, but this effort "cannot happen at an office in Santiago; it must be done here on the ground." He cautions that should the new technology have adverse effects, his people will exert all their influence to halt any operation that might result in Peine being erased from memory.

The Government's Position

The administration in Chile emphasizes a record of "sustained conversation with indigenous groups." Representatives claim these groups were brought in on discussions about the Codelco-SQM venture to tackle worries over water, technology, and community benefits. The government's official line is that any growth in production will depend on using new technologies that limit social and environmental harm. It considers that the significant market worth of lithium presents a major chance for the nation's economy, supporting the worldwide energy shift. Sergio, however, continues to be anxious about his home becoming a "test case" with possibly permanent negative results.

A Global Dilemma in Microcosm

What is happening in the Salar de Atacama is a small-scale version of a worldwide challenge. The changing climate is creating drought conditions and unstable weather. But a primary solution used on the planet today—green tech that depends on lithium—is, in the view of the people at its source, worsening the regional crisis. Supporters of the mining often make a standard point: even with the environmental cost, it provides substantial advantages through jobs and money. Daniel Jimenez, who consults for iLiMarkets out of Santiago, pushes the point further. He alleges that communities have blown the environmental problems out of proportion to get a payout.

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Money, Jobs, and Disruption

"The primary concern is financial," Jimenez states. He alleges that corporations have invested large sums in upgrading roads and schools, but the grievances from the local groups are essentially a bid for more money. Professor Stegen is not persuaded by this view. "It's a common line from mining companies: 'There will be more employment, you'll receive more funds'," she notes. "But that isn't really the main desire for many of these indigenous groups." Such rapid development, she clarifies, can be severely unsettling, altering the foundations of their traditional way of life and impacting their cost of living. For many of these populations, employment is not the most important thing.

Paying the Ultimate Price

The individuals in Chile who recounted their stories did not express a wish for more cash. They are not against efforts to fight the changing climate. The question they focus on is the reason they are shouldering the burden. "For the big cities, maybe lithium is a good thing," Raquel observes. "But it hurts us too. Our previous way of living here has vanished." Faviola Gonzalez is not convinced that switching to electric vehicles is the whole answer to the climate problem. "A reduction in emissions is needed from all of us," she declares. "In prosperous nations, including the US and across Europe, personal energy usage is far higher than it is within South America, particularly among our indigenous populations."

A Question of Justice

The final, sharp injustice is obvious to Faviola. "For whom are these electric cars being made? For Europeans and Americans, not for people like us. The environmental impact we make is far smaller," she says. "Yet our water is the one being consumed. And the birds we hold sacred are disappearing." The green revolution, which is meant to protect the planet, rests on a bedrock of local sacrifice. The clean-energy future for some is seemingly being built from the ecological devastation of others, which leaves a sour feeling in the arid Atacama air.