Chile is focusing on the approval of a crucial joint venture between Codelco and SQM, which will significantly impact its lithium production and potentially shift its energy focus towards green hydrogen, while environmental issues like water contamination from mining and the closure of coal-fired power plants The government continues to support renewable energy initiatives and marine protection efforts, though progress in the oil and gas sector itself appears to be stalled in favor of more sustainable energy sources.
Lithium Venture Approval of the SQM-Codelco partnership is a major event, with a decision pending from China’s antitrust regulator due to Tianqi’s significant stake in SQM. The new joint venture, Salar Futuro, is expected to increase lithium carbonate equivalent (LCE) capacity and will require an environmental impact study by the second half of 2026.
Chile is actively developing regulations for its green hydrogen industry, which is a cornerstone of its 2050 carbon neutrality goal.
The HyEx project, spearheaded by Engie, aims to produce green ammonia, a project that could see the use of green hydrogen to replace diesel in mining truck.
The government’s commitment to closing all coal-fired plants by 2040 is ongoing.
AES has closed its Norgener plants earlier than scheduled, and four more coal plants are slated for closure in 2025, reflecting the country’s commitment to decarbonization
Despite the country’s focus on resource extraction, there are increasing concerns about the environmental and health impacts of mining operations.
note by Alessandro Bazzoni