Progress And Pitfalls In Lithium Regulation—An Investor's Guide To Navigating The Changes

Chile not only possesses the world's largest lithium reserves but also has unique advantages that should position it as a global leader in lithium production. Yet, due to a restrictive legal framework, the nation's lithium sector remains largely underdeveloped. As we progress through 2023, however, a palpable shift in policy and legal initiatives promises to unlock enormous potential for both the state and private companies.

I. Current Regulation of Lithium in Chile

1. An Archaic Legal Framework: The existing regulation, rooted in the 1979 Decree Law 2,886, is both outdated and unduly restrictive. Initially established due to fears of lithium's potential nuclear applications, the law has failed to adapt to the element's current, predominantly non-military, uses such as renewable energy and electric vehicles.