The Fact and Its Mechanism
In 2026, Codelco, the Chilean mining giant, initiated a project to extract 100,000 tons annually of lithium from salares (salt flats) in Patagonia. The initiative, funded with $1.2 billion, relies on solar evaporation technologies to concentrate the lithium-rich brine. The process requires 18-24 months to produce lithium carbonate, consuming 3.5 m³ of water per kilogram extracted.
The project is located in a region where the Atacama and Ollague salares already host similar plants. The additional production capacity will strengthen Chile’s position as the second-largest global producer of lithium, after China. The logistics involve transportation by rail to Valparaíso, where the mineral will be loaded onto ships with a capacity of 150,000 DWT.
Engineering the Bottleneck
The heart of the project is the network of extraction wells and evaporation ponds, covering 15 km². The wells, drilled 300 meters deep, pump saline solution at a pressure of 150 bar. The ponds, constructed with high-density polyethylene liners, maintain a lithium concentration of 0.25 g/L. The system requires continuous monitoring to prevent excessive salinity, which can damage the ponds.
The existing railway infrastructure, managed by EFE (Empresa de Ferrocarriles del Estado), has a capacity of 20 million tons/year. For the Codelco project, 10 Siemens Desiro electric locomotives were added, capable of transporting 15,000 tons per trip. The port of Valparaíso, with 12 dedicated quays, has a loading time of 12 hours per ship.
Who Pays and Who Profits
The project’s financing includes an $800 million loan from Banxico (Mexico) and a direct investment of $400 million from Codelco. The mining company has signed long-term contracts with CATL (China) and LG Chem (Korea), which will guarantee the purchase of 70% of the production. This agreement reduces the risk of overproduction, but limits price flexibility.
Local municipalities, such as San Pedro de Atacama, will see a 15% increase in tax revenues, but will have to manage the environmental impact. The Chilean naval industry, represented by Naviera SA, will generate $200 million annually from specialized transportation. However, the high water consumption could generate conflicts with local farmers.
Conclusion
The Codelco project illustrates the tension between mining growth and water sustainability. Monitoring the price of lithium (indicator 1) and the water consumption per kilogram extracted (indicator 2) will be crucial in the coming years. It is evident that the Chilean infrastructure is entering a more mature phase, where thermodynamic efficiency and buffer capacity become priorities.
Photo by Joakim Honkasalo on Unsplash
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