Chile: Critical Minerals Profile
World's largest copper producer and major lithium supplier from South America's Lithium Triangle.
Overview
Chile's position as the world's largest copper producer gives it unmatched significance in the global energy transition, as copper is the essential conductor for electrification of transport, power grids, and renewable energy systems. Chilean mines produce approximately 27% of global copper output, with major operations including Escondida, Collahuasi, and Los Pelambres ranking among the world's largest. Beyond copper, Chile is the world's second-largest lithium producer, with extraction from the Salar de Atacama's lithium-rich brines by SQM and Albemarle supplying a significant share of global battery-grade lithium carbonate. Chile also dominates global production of rhenium, a critical superalloy element for jet engines, and is a major molybdenum and iodine producer. The country's national lithium strategy, announced in 2023, seeks to increase state participation in lithium extraction through a public-private partnership model that requires new operators to partner with state-owned CODELCO or ENAMI.
Key Minerals and Resources
Chile's critical mineral profile is defined by its endowment of lithium, copper, rhenium, molybdenum, iodine, and silver. These minerals position the country as a significant global supplier in supply chains spanning the energy transition, advanced manufacturing, and defense sectors.
Mining and Production
Chile's mining sector is one of the world's most productive, dominated by large-scale open-pit copper operations that collectively produce approximately 5.5 million tonnes of copper annually. The country's state-owned mining company CODELCO operates several of the world's largest mines, including Chuquicamata, El Teniente, and Radomiro Tomic, while private operators BHP, Glencore, Antofagasta, Freeport-McMoRan, and others run major operations including Escondida, Collahuasi, and Los Pelambres. Lithium production from the Salar de Atacama is conducted by SQM and Albemarle through evaporation ponds that concentrate lithium brines before chemical processing into lithium carbonate and lithium hydroxide. Chile's mining regulatory framework is among the most established in Latin America, governed by the Mining Code and overseen by Sernageomin, though water scarcity in the Atacama region and social license challenges are increasingly important considerations for new project development.
Policy and Regulation
Chile's mineral policy balances promotion of continued copper investment with the government's national lithium strategy, which seeks to increase state participation in lithium extraction. The 2023 National Lithium Strategy requires new lithium operators to form partnerships with state-owned companies CODELCO or ENAMI, with the state holding majority control. Existing concessions held by SQM and Albemarle are being renegotiated under this framework. Chile's mining sector is governed by the Mining Code and the Environmental Framework Law, with SERNAGEOMIN providing technical regulation and the Environmental Assessment Service managing project permitting. Water regulation in the Atacama region has become increasingly stringent, reflecting concerns about the impact of lithium brine extraction and copper mining on scarce water resources in the world's driest desert.
International Partnerships
Chile has positioned itself as a strategic mineral partner for nations seeking secure copper and lithium supply. The country has signed mineral cooperation agreements with the European Union, the United States, Japan, South Korea, and other consuming nations. Chile is a member of the Minerals Security Partnership observer group and participates in multilateral discussions on responsible mineral supply chains. The country's partnerships focus on securing long-term offtake agreements for copper and lithium, attracting investment in processing and value addition, and developing joint approaches to sustainable mining practices including water management and community engagement in the Atacama region.
Supply Chain Role
Chile is a critical upstream supplier in global mineral supply chains, with its production feeding directly into the manufacturing supply chains of consuming nations across North America, Europe, and Asia. The country's minerals are essential inputs for the energy transition, with copper serving as the backbone of electrification and lithium powering the battery revolution. Chile's supply chain role extends beyond simple extraction, as the country has developed significant smelting and refining capacity for its primary minerals. However, the country's influence over global supply chains is primarily exercised through its role as a raw material and semi-processed material supplier, with downstream manufacturing occurring predominantly in consuming nations.
Related Country Profiles
Explore profiles of other nations that share regional ties or overlapping mineral endowments with Chile.
United States
North AmericaWorld's largest consumer of critical minerals driving reshoring and supply chain diversification policies.
Canada
North AmericaKey allied supplier and emerging processing hub for critical minerals in the Western Hemisphere.
Australia
OceaniaGlobal mining powerhouse and largest lithium producer pursuing downstream processing expansion.
European Union
EuropeMajor consumer pursuing strategic autonomy through the Critical Raw Materials Act and diversification targets.
United Kingdom
EuropeHistoric mining nation rebuilding critical mineral capabilities through domestic projects and global partnerships.
Japan
East AsiaHighly import-dependent technology manufacturer leading in strategic stockpiling and recycling innovation.