Indigenous Communities Seek Role in Chile’s Lithium Boom

Indigenous communities in Chile’s Atacama Desert are negotiating with state miner Codelco and lithium giant SQM for greater involvement in the expansion of lithium extraction in their ancestral lands. These talks, which began in March and are expected to conclude by year-end, aim to establish a new governance model for operations in the lithium-rich Atacama salt flat—home to the Lickanantay people for thousands of years.

The Codelco-SQM partnership, giving Codelco majority control of Atacama lithium operations, reflects Chile’s shift toward a state-led strategy under President Gabriel Boric. The deal is part of a plan to boost lithium output by 33% through 2060 while addressing Indigenous rights and environmental concerns. Communities emphasize water protection and sustainable extraction, demanding a formal role in environmental oversight without seeking a business stake.

Protests last year disrupted SQM operations, prompting the companies to prioritize Indigenous engagement. While tensions exist, both parties now meet regularly to shape a model that aligns with international Indigenous rights standards. Community leaders stress urgency due to upcoming presidential elections, fearing a future administration may reverse pro-Indigenous policies.

Environmental concerns remain central. Locals want assurances on water preservation and pollution prevention. Though SQM has implemented outreach programs and passed a 2023 IRMA audit, mistrust lingers from past practices. Still, analysts say a robust agreement could improve ESG credentials, attracting ethical investors and global automakers seeking transparent lithium supply chains.

Chile holds the world’s largest proven lithium reserves and ranks as the second-largest producer. As global EV demand rises, ensuring sustainable and inclusive mining is key to long-term industry success. Indigenous leaders say development is welcome—as long as they’re not left behind.