Chile’s state mining company ENAMI is aiming to commence construction on its first lithium project by 2027 or 2028, according to company chief Ivan Mlynarz.

This initiative is part of the Chilean government’s strategy to enhance its involvement in lithium production, a critical component of electric vehicle batteries.

ENAMI, known for processing copper for local mining firms, has been appointed to lead the government’s initial lithium ventures in collaboration with state mining giant Codelco.

Chile is the world’s second-largest producer of lithium, a material essential for the batteries that power electric vehicles. The global demand for electric vehicles has driven a surge in interest and competition for lithium.

This month, ENAMI launched a search for a private partner to provide financial support or operational assistance for the project, located at three salt flats collectively known as the Salares Altoandinos in Chile’s Atacama region.

The deadline for applicants to register is June 7, initiating a selection process that ENAMI aims to conclude by March 2025.

Mlynarz stated, “Right now, we are developing the engineering basically so the project can start construction around 2027 or 2028,” emphasizing the Finance Ministry’s goal of commencing new lithium production in Chile by 2030.

He also noted that ENAMI is seeking partners with sufficient financial backing and experience to ensure the project’s success.

Currently, only Chile’s SQM and U.S.-based Albemarle produce lithium in the country, which holds the world’s largest lithium reserves. ENAMI anticipates producing approximately 60,000 metric tons of lithium annually at Altoandinos.

The size of ENAMI’s stake in the project will depend on the available lithium resources and required investment. The project spans nearly 30,000 hectares across salt flats known as Aguilar, La Isla, and Grande. French lithium company Eramet, which acquired mining concessions in the same region last year, aims to secure approvals for lithium extraction.