Chile is positioning itself as a critical player in the global battery and EV supply chain. The state-owned development agency, Corfo, has announced $5.8 million in funding for two strategic research projects targeting direct lithium extraction (DLE) and rare earth element recovery. These initiatives aim to boost mining innovation, foster a circular economy, and create new commercial opportunities in the rapidly evolving energy and battery sector.
Direct Lithium Extraction: Enhancing Global EV Supply
The first project will receive $1.9 million over two years to identify and validate DLE technologies optimized for Chile’s brines in salt flats and saline lagoons. The initiative will build a testing platform and produce early technical validation under real-world Chilean conditions. By advancing efficient and environmentally sustainable lithium extraction, Chile is reinforcing its role as a global supplier of high-purity lithium, a cornerstone for EV batteries and renewable energy storage worldwide.
Rare Earth Recovery: Turning Waste into Strategic Resources
A second project will receive $3.9 million over three years to develop sustainable solutions for rare earth element recovery. Using leaching and bioleaching techniques, the project aims to transform mining waste, tailings, and slags into valuable resources, reducing environmental liabilities while creating new economic streams. Chile’s reserves-46,000 tonnes of vanadium, 16,000 tonnes of cobalt, and hundreds of tonnes of rare earths-underscore the strategic importance of this initiative for global technology and clean energy markets.
Strategic Context and Global Implications
These projects fall under Corfo’s R&D Challenges program, which co-finances up to 80% of project costs using proceeds from mining concessions in the Salar de Atacama. They complement major industry moves:
- Codelco and SQM formed Nova Andino Litio, consolidating lithium production and exploration in Atacama until 2060.
- Albemarle tested its DLE technology in Chile, achieving 94% lithium recovery and 85% water reuse, showcasing the potential for scalable and environmentally responsible production.
By investing in next-generation lithium and rare earth technologies, Chile strengthens its position in the global battery ecosystem, ensuring long-term competitiveness, sustainability, and technological leadership. The country’s efforts will not only fuel domestic growth but also provide critical materials to support the global transition to electric vehicles and renewable energy, influencing supply chains across the Americas, Europe, and Asia.
Key Takeaways for Executives
- Chile invests $5.8M to advance lithium and rare earth tech.
- DLE project supports sustainable, efficient lithium extraction.
- Rare earth recovery project promotes circular economy and reduces mining waste.
- Initiatives enhance Chile’s strategic role in global EV and battery supply chains.
- Partnerships with Codelco, SQM, and Albemarle amplify technological and commercial impact.
Read more on : How Direct Lithium Extraction Is Shaping the Future of Lithium Production
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