Chile has the world’s largest lithium reserves and is the third largest lithium producer in the world, producing 56,000 tonnes of lithium in 2025.
The majority (88%) of lithium use is for batteries, given the increasing market for electric vehicles, energy grid storage, portable electronic devices, and electric tools.
In the South American lithium regions, including Chile, lithium is extracted and processed from brine, unlike in Australia, where it is obtained from ore. The conclusions and lessons from this case study can guide sustainable brine lithium extraction in Chile as well as other jurisdictions.
This case study is part of a project strengthening supply chain resilience by analyzing the environmental and associated social impacts of critical minerals extraction and processing through country-commodity case studies on nickel, lithium, and copper.
It describes Chile’s environmental challenges and associated social issues relating to lithium extraction from brine and examines the country's policy measures for managing them.
