Chile’s president aims to nationalize world’s largest lithium supply
Chile’s president, Gabriel Boric, wants to create a plan to require state involvement in and control of any lithium contracts going forward, in the country with the world’s largest lithium supply.
Boric says that the plan will protect biodiversity and indigenous rights, and will help to distribute the gains from Chile’s mineral wealth more broadly among Chileans.
Chile is home to the world’s largest lithium reserves in its vast northern Atacama desert. The desert is known for its salt flats, large flat areas where water has evaporated and left concentrated solids on the land. Lithium can then be extracted from brine pools on these salt flats.
The desert also reaches into neighboring Bolivia and Argentina, and the area has been referred to as the “lithium triangle.” It is thought to hold roughly half of the world’s lithium reserves, though the resource is still reasonably common elsewhere.
Currently, the world’s largest lithium exporting country is Australia, with Chile in second place. But other countries including China, Argentina, Brazil, and even the US have significant lithium reserves and production capacity, and everyone is aiming to increase production in the coming years.
And some other countries have exerted control over their EV battery resources, with Mexico recently nationalizing its lithium deposits and Indonesia banning exports of nickel in hope of keeping that industry domestic.
Lithium prices have been volatile in recent years, with the resource shooting up about 400% in price in late 2021 due to supply chain challenges and extremely high electric car demand which supply was not able to keep up with.
But most expected prices to drop precipitously this year, and since the beginning of the year, they have. Prices are still high compared to historical averages but are dropping quickly and getting close to those averages.
And, despite being in the name of lithium-ion batteries, each electric car only needs about 20 lbs of lithium. At recent prices, this means there is a few hundred dollars worth of lithium in each EV battery.
Boric’s plan would affect the world’s largest two lithium suppliers, Albemarle and Sociedad Quimica y Minera de Chile (SQM), both of which operate in Chile. Albemarle is a multinational which was formed in 1992 as a spin-off of Ethyl Corporation, the company responsible for putting lead in gasoline. SQM was originally founded as a Chilean state-owned company in 1968 but is now owned by Chilean billionaire Julio Ponce Lerou, son-in-law of Chilean dictator Augusto Pinochet.
The companies dipped 21% and 10% in the stock market today after Boric’s plan was announced.
Chile would not instantly take control of these companies’ operations, but rather the plan would go into effect upon renewal of the companies’ contracts. Currently, SQM’s contract will expire in 2030, and Albemarle’s in 2043. Boric hoped that companies would be open to earlier participation by the state.
But so far, this plan has only been announced by Boric and will have to go through Chile’s National Congress first. He plans to present it to Congress later this year, though the body has blocked many of his proposals in the past.
Chilean politics is going through a lot of change right now. The country saw sustained protests starting in 2019 demanding a new constitution to replace the current one which was implemented under dictator Augusto Pinochet in 1980.
Then in 2021, Boric, a socialist who at 37 is one of the world’s youngest state leaders, won a wide victory over far-right opponent Jose Antonio Kast, who had previously served under Pinochet and whose grandfather had been in the Nazi army. So, the choice was stark.
With this mandate, Boric proposed a new constitution with many progressive reforms. One of those proposed reforms (article 27) would have been to nationalize mining operations, but it was rejected before the constitution went to a vote. Instead, it included a provision that miners must put aside resources to repair damage from mining activities.
The proposed constitution was supported by most Chileans at first, particularly young Chileans and those on the political left. But as the referendum for its approval came closer, polls turned against it and the proposed Constitution failed by a wide margin. The country is now drafting a second proposal, as most Chileans still want to replace the constitution of Pinochet.
But this would not be Chile’s first brush with the nationalization of the extractive industry. In the late 60s and early 70s, Chile pushed to nationalize several industries, particularly the extraction of copper (and even created an early “internet” to manage it).
Chilean president Salvador Allende, a socialist, won in 1970 with the promise of nationalizing copper outright without compensation to the various companies, largely US-based, currently operating in the sphere. The copper industry was nationalized soon after his election with modest compensation to these companies, which drew the ire of the U.S.
Then, in 1973, a U.S.-backed coup led to the deposal and death of democratically-elected Allende and his replacement with the new dictator Pinochet.
Boric’s announcement stops short of Allende’s, in that it does not aim to immediately nationalize the industry without compensation. It also stops short of the proposal in article 27, as that would have given the state exclusive mining rights across many resources, whereas Boric’s current proposal seeks to enforce public-private partnerships in lithium specifically.
But the Chilean state still owns the nation’s copper extraction industry via Codelco, which supplies 11% of the world’s copper. Boric would have this company take a role in finding the best way to manage any public-private partnerships for lithium extraction.
The US currently has a free trade agreement with Chile, in force since 2004. This is relevant for new battery critical mineral guidelines from the US, requiring that battery minerals be sourced from the US or free trade countries in order to qualify for tax credits from the Inflation Reduction Act.
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For years, Tesla has been the go-to EV recommendation for “normals” looking for a painless, low-effort experience from their first electric cars. In light of questionable recalls and its CEO’s recent involvement in controversial politics, however, people are starting to distance themselves from the trailblazing company.
All that begs the question: what should we recommend to EV noobs now?
Despite early quality issues and ongoing service headaches, the groundbreaking S3XY lineup of EVs have always had a secret weapon in the form of the Tesla Supercharger network.
That network of dependable high-speed chargers, paired with solid app integration that makes it easy for Tesla drivers to find available chargers just about anywhere in the US, gave the brand a leg up – but no more. By opening up the Supercharger network to brands like Ford, Hyundai, Kia, and others, Tesla has given away its biggest competitive advantage.
Add in charging and route-planning apps like Chargeway, that make navigating the transition from CCS to NACS easier than ever with its intuitive colors and numbers and easy on/off switch for vehicles equipped with NACS adapters, and it feels like the time is right to start suggesting alternatives to the old EV industry stalwarts. As such, that’s exactly what I’m going to do.
Here, then, are my picks for the best Tesla S3XY (and Cybertruck) alternatives you can buy.
Less Model S, more Lucid Air
Developed by OG Tesla Model S engineers with tunes from Annie Get Your Gun playing continuously in their heads, the Lucid Air promises to be the car Tesla should and could have built, if only Elon had listened to the engineers.
With panel fit, material finish, and overall build quality that’s at least as good as anything else in the automotive space, the Lucid Air is a compelling alternative to the Model S at every price level – and I, for one, would take a “too f@#king fast” Lucid Air Sapphire over an “as seen on TV” Model S Plaid any day of the week. And, with Supercharger access reportedly coming later this quarter, Air buyers will have every advantage the Supercharger Network can provide.
HONORABLE MENTIONS
Less Model 3, more Hyundai IONIQ 6
Hyundai has been absolutely killing it these days, with EVs driving record sales and new models earning rave reviews from the automotive press. Even in that company the IONIQ 6 stands out, with up to 338 miles of EPA-rated range and lickety-quick 350 kW charging available to make road tripping easy – especially now that the aerodynamically efficient IONIQ 6 has Supercharger access through a NACS adapter (the 2026 “facelift” models get a NACS port as standard).
The company’s sole electric sedan hasn’t seen the same sales success as IONIQ 5, of course – but that has more to do with America’s insatiable lust for crossovers and SUVs than any shortcoming inherent in the IONIQ 6 itself. All the same, Hyundai is helping dealers clear out its remaining 2024 and ’25 models with 0% financing for up to 48 months through June 2nd.
HONORABLE MENTIONS
Less Model X, more Volvo EX90
Once upon a time, Mrs. Jo Borrás and I were shopping three-row SUVs and found ourselves genuinely drawn to the then-new Model X. Back then it was the only three-row EV on the market, but it wasn’t Elon’s antics or access to charging, or even the Model X’s premium pricing that squirreled the deal. It was the stupid doors.
We went with the similarly new Volvo XC90 T8 in denim blue, and followed up the big PHEV with a second, three years later, in Osmium Gray. When it’s time to replace this one, you can just about bet your house that the new 510 hp EX90 with 310 miles of all-electric range will be near the top of the shopping list.
HONORABLE MENTIONS
Less Model Y, more Kia EV6
If half the fun of driving a Model Y is terrifying your passengers with its straight-line speed, then the Kia EV6 has to be a serious contender for a replacement.
The sporty EV6 GT made its global debut by drag racing some of the fastest ICE-powered cars of the day, including a Lamborghini, Mercedes-AMG GT, a Porsche, even a turbocharged Ferrari – and it beat the pants off ’em. Combine supercar-baiting speed with an accessible price tag, NACS accessibility, $10,000 in customer cash on remaining 2024 models ($3,000 on 2025s) and just a hint of Lancia Stratos in the styling, the EV6 is tough to beat.
HONORABLE MENTIONS
Less Cybertruck, more therapy
It’s not bulletproof, it’s not easy to upfit, it shouldn’t be used for towing, and it won’t win in a straight fight against a vinyl picket fence. By just about every standard “truck” metric, the Tesla Cybertruck falls short against the competition from Chevrolet, Ford, and Rivian. On a more subjective front, the Cybertruck has become a symbol for a conservative movement that is (depending on your point of view) either making America great again or plunging a once-great democracy into an era of fascist oligarchy and widespread stupidity.
In short, it’s probably best to skip the CT.
If you disagree with that statement and feel like driving a new Tesla Cybertruck is the key to happiness, I’m not sure an equally ostentatious GMC Hummer EV or more subtle Rivian R1T will help you scratch that particular itch – but maybe therapy might!
HONORABLE MENTIONS
Original content from Electrek.
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Republicans launched multiple attacks against EVs, clean air and American jobs this week, at the behest of the oil industry that funds them. These attacks won’t be successful, and EVs will continue to grow regardless, and inevitably take over for outdated gasoline vehicles.
However, these republican attacks on EVs will still have some effect: they will diminish the US auto industry globally, leading to job losses and surrendering one of the jewels in the crown of American industry to China, where there is no similar effort to destroy its own domestic EV industry.
Republican attacks on clean air this week included moves to block funding that has led to a renaissance in US manufacturing and also to illegally block clean air laws. They also moved forward with a procedural step towards increasing US fuel costs by $23B, an effort which the former reality TV contestant posing as the head of the DOT announced in January.
These moves shouldn’t be a big surprise – republicans have opposed clean air and American jobs for many years now, and they’re doing it because they want to maintain the bribes they get from the oil industry.
But they should inspire worry for Americans, because they will only harm the country’s domestic manufacturing base in the face of a changing auto industry.
Republicans keep trying to kill clean cars
The last time a republican occupied the the White House, we saw similar efforts to try to raise fuel and health costs for Americans, and to block superior EV technology from flourishing. That didn’t work in the end, and EVs continued to grow both during that period and after.
All the while, fossil fuels have maintained their privileged policy position, being allowed to pollute with impunity and costing the US $760 billion per year in externalized costs. Much of that subsidy is accounted for in the cost of pollution from gas cars, which are one of the primary uses of fossil fuels, which means that, in fact, gasoline vehicles receive much more subsidy than EVs do.
And yet, EVs still managed to grow substantially, despite these headwinds. EV sales have continued to grow, both in the US and globally, even as headlines incorrectly say otherwise. The republican party’s attempts to kill them were futile, and will continue to be.
It didn’t work, but it did delay progress
However, anti-EV actions from Mr. Trump and the republican party did manage to delay progress from where it could have been if America actually instituted smart industrial policy earlier.
What if, instead of the bumbling, idiotic nonsense we went through the last time Mr. Trump squatted in the White House, we could have had something more like President Biden’s EV policy, which created hundreds of thousands of jobs and attracted hundreds of billions of dollars of manufacturing investment?
Surely the American auto industry would be ahead of where it is now if those investments had had time to come online. But instead, republicans are currently trying to kill those jobs, which has already led to several manufacturing projects being cancelled this year, depriving Americans of the economic boost they need right now.
Meanwhile, there’s one place that this sort of stumbling isn’t happening: China.
China is taking advantage
China has spent more than a decade focusing on securing material supply, building refining capacity, developing their own battery technology, and encouraging local EV manufacturing startups.
This has paid off recently, as Chinese EVs have been rapidly scaling in production in recent years. It took a lot of the auto industry by surprise how rapidly Chinese companies have scaled, and how rapidly Chinese consumers have adopted them, after having an initially slow start.
But that adoption hasn’t just been local, it’s also global. Last year, China became the largest auto exporter in the world, taking a crown that Japan had held for decades. But the change was even more dramatic than that – as recently as 2020, China was the sixth-largest auto exporter in the world, just behind the US in 5th place.
China’s dramatic turn upward started in 2020, and now it’s in first place. Meanwhile, because of all the faffing about, the US remains exactly where it was in 2020 – still in fifth place. Well, sixth now, since China eclipsed us (and everyone else).
Tariffs won’t fix it
The reaction of the rest of the world’s automaking countries has been to put tariffs on Chinese autos, hoping to forestall the country’s dramatic rise to dominance. (Although, due to Mr. Trump’s idiotic flailing, Europe is already talking about removing these trade barriers with China)
But tariffs have been tried before, and they didn’t work. When Japan had a similarly meteoric rise to global prominence as an auto manufacturer in the 1970s and 80s, largely due to their adoption of new technology, processes, and different car styles which incumbents were ignoring, the US tried to stop it with tariffs.
All this did was make US manufacturers complacent, and Japan still managed to seize and maintain the crown of top auto exporter (occasionally trading places with Germany) from then until now.
Then as now, the true way to compete is to adapt to the changing automotive industry and take EVs seriously, rather than giving the auto industry excuses to be complacent. But instead, republicans aren’t doing that, and in fact are working to ensure the American auto industry doesn’t adapt, by actively killing the incentives that were leading to a boom in domestic manufacturing investment.
US auto industry jeopardized by republicans
Make no mistake about it: destroying EV incentives, and allowing companies to pollute more and innovate less, will not help the US auto industry catch up with a fast moving competitor.
As we at Electrek have said for years, you cannot catch up to a competitor that is both ahead of you and moving faster than you.
This applies to individual companies, which took their sweet time responding to the challenge from electric upstarts like Tesla, and have now lost market share to said upstarts and let a competitor establish itself in a big way (even though Tesla’s CEO is now trying desperately to harm his own company specifically, and the US EV industry as a whole, by being the largest funder of the party working to destroy said industry).
It also applies to nations, which could have spent the last decade doing what the Chinese auto industry has been doing, but instead non-Chinese automakers have been begging their governments for more time, even though it’s not the regulations that threaten them, it’s competition from a new and motivated rival that is moving faster and in a more determined manner towards the future.
The way that we get around this should be clear: take EVs seriously.
But that’s not what republicans are doing, and in doing so, they are signing the death warrant for an important US industry in the long term.
Another thing republicans are trying to kill is the the rooftop solar credit, which means you could have only until the end of this year to install rooftop solar on your home before the cost of doing so goes up by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.
To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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International equipment manufacturer Vermeer has unveiled a full-scale prototype of its Interlune excavator, a machine designed to ingest 100 metric tons of rocks and dirt per hour, extracting valuable helium as it makes its way across the surface … of the Moon.
Helium plays a critical role in the manufacturing of semiconductors, chips, optics, and all the other stuff that makes EVs, autonomy, the Internet, and the rest of twenty-first century life possible. The problem is that, despite being the second-most common element in the universe, helium is pretty rare on Earth – and we are rapidly running out. As such, there are intense economic and political pressures to find new and reliable sources of helium somewhere, anywhere else, and that demand has sparked a new modern space race focused on harvesting helium on the Moon and getting it back home.
To that end, companies like American lunar mining startup Interlune and the Iowa-based equipment experts at Vermeer are partnering on the development of suite of interplanetary equipment assets capable of digging up lunar materials like rocks and sand from up to three meters below the surface, extract helium-3 (a light, stable isotope of helium believed to exist in abundance on the Moon), then package it, contain it, and ship it back to Earth.
“When you’re operating equipment on the Moon, reliability and performance standards are at a new level,” says Rob Meyerson, Interlune CEO. “Vermeer has a legacy of innovation and excellence that started more than 75 years ago, which makes them the ideal partner for Interlune.”
Enter: Japan
America isn’t the only spacefaring nation eyeing a helium mine on the Moon. Japan announced similar plans back in 2023, with Japanese construction giant Komatsu announcing plans to develop a fully electric excavator capable of operating on the lunar surface.
The company showed a scaled prototype of the machine at the 2025 Consumer Electronics Show (CES) in Las Vegas (above), emphasizing the need to develop new ways to operate equipment assets in the extreme temperatures of extraplanetary environments beyond diesel or even hydrogen combustion.
On the airless surface of the moon, it would be impossible for an internal combustion engine to operate on the moon’s surface because there is no oxygen for combustion. Electrically powered machines seem the obvious solution with solar power generation supplying the electricity. But the answer is not that simple.
Temperature changes on the surface of the moon are extreme. They can soar to 110° C and plummet to -170° C. Developing electric construction machinery to perform in this environment is no easy task, but Komatsu is tackling issues one by one as they appear. Using thermal control and other electrification technologies, we are engineering solutions.
Despite Komatsu’s apparent head start, however, Vermeer seem to pulled ahead – not just in terms of machine development, but in terms of extraction potential as well.
“The high-rate excavation needed to harvest helium-3 from the Moon in large quantities has never been attempted before, let alone with high efficiency,” said Gary Lai, Interlune co-founder and CTO. “Vermeer’s response to such an ambitious assignment was to move fast. We’ve been very pleased with the results of the test program to date and look forward to the next phase of development.”
Interlune is funded by grants from the US Department of Energy and NASA TechFlights. In 2023, the company received a National Science Foundation (NSF) Small Business Innovation Research award to develop the technology to size and sort lunar regolith (read: dirt). Interlune has raised $18 million in funding so far, and is planning its first mission to the Moon before 2030.
Electrek’s Take
We’ve got space travel, weird mineral extraction from another planet that’s essential for our technology, and a rapid, unchecked proliferation of AI. All we need now is big worms, a whole bunch of hallucinogenic narcotics, and the will to smash up a bunch of data centers with baseball bats – then we’ll have a pretty decent Dune LARP going. Yee-ha!
SOURCE | IMAGES: Interlune.
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