In March 2026, Chile entered a new political cycle. Newly elected President José Antonio Kast was formally sworn in, succeeding former President Gabriel Boric. As one of the world’s most important mining countries, Chile’s policy direction has a significant impact on the global mining market. Mining is not only a core pillar of the national economy but also a critical component of the global supply chain for energy transition minerals. Against the backdrop of the new administration, adjustments to Chile’s mining policies, investment environment, and strategies for critical minerals are drawing widespread attention from global markets.
Mining remains a pillar but faces structural challenges
Mining has long been a foundational industry for Chile’s economic development. Data show that mining directly contributes approximately 11%-12% of GDP, and when related value chains are included, its contribution can exceed 20%. Chile remains the world’s largest copper producer, accounting for roughly one-quarter of global mined copper supply.
However, in recent years, Chile’s mining sector has faced a series of structural challenges. Some large mines have entered mature stages, with declining ore grades and deeper deposits leading to rising extraction costs. At the same time, relatively complex approval procedures and regulatory systems have, to some extent, slowed the advancement of new projects. Data indicate that Chile’s copper output declined year-on-year in 2025, raising concerns about future supply stability in the context of the global energy transition.
Policy adjustments and approval reform in focus
A key change following the new government’s inauguration is the merger of the Ministry of Mining and the Ministry of Economy, led by Daniel Mas. The government believes this adjustment will help strengthen coordination between economic and industrial policies, thereby promoting mining investment and economic development. However, the move has also sparked discussion within the industry. Some stakeholders note that mining, as a technology-intensive sector, involves resource management, environmental protection, and long-term investment planning, and that a lack of sector-specific expertise at the decision-making level could affect the professionalism of policymaking. Meanwhile, industry organizations have called for reforms to the approval system to improve project development efficiency.
At present, a mining project often requires hundreds of permits before construction can begin, which not only extends project timelines but also significantly increases development costs. The market widely expects the new government to improve the investment environment by streamlining approval processes and enhancing regulatory efficiency. According to relevant forecasts, Chile’s mining investment could reach approximately USD 105 billion by 2034, with institutional reform being a key prerequisite for achieving this target.
Lithium and critical minerals as future priorities
Amid the global energy transition, the importance of critical minerals continues to rise. To reduce reliance on a single resource, Chile has been promoting the diversification of its mining sector and has introduced a national critical minerals strategy, expanding its focus from copper and lithium to include molybdenum, cobalt, rare earth elements, antimony, and boron.
Among these, lithium has attracted particular market attention. Chile is currently the world’s second-largest lithium producer and possesses some of the lowest-cost brine lithium resources globally, especially concentrated in the Atacama Desert. Although the national lithium strategy introduced in 2023 has strengthened government participation in the sector and introduced a degree of policy uncertainty, multiple lithium projects continue to advance.
For example, new lithium developments jointly promoted by Codelco and SQM, as well as the Maricunga salt lake project, are expected to have a significant impact on Chile’s lithium production in the coming years. With the continued expansion of the global electric vehicle industry, demand for lithium is expected to remain on a growth trajectory, creating new opportunities for Chile’s mining sector.
Conclusion
Against the backdrop of intensifying global competition for lithium resources, technological innovation is becoming a key driver in improving the efficiency of brine resource development. BICHEM believes that, supported by the global energy transition and the rapid growth of the electric vehicle industry, lithium demand will continue to increase. Chile’s abundant brine resources, combined with next-generation lithium extraction technologies, present strong potential for integration. If Chile can achieve positive interaction among policy stability, investment environment improvements, and technological innovation, its position in the global lithium supply system is likely to be further consolidated. At the same time, the application of advanced lithium extraction technologies will create new opportunities for the green development and industrial upgrading of brine resources.
