From Brine to Battery: Chile Pushes Lithium Refining

Chile and its mining giants push deeper into lithium refining as global buyers seek cleaner, more secure supply

13 Nov 2025

South America’s lithium industry is shifting gears. Long known for exporting raw minerals, the region is now racing to build refining and processing capacity that could redefine its place in the global clean energy chain.

Chile is setting the pace. The state miner Codelco has joined forces with SQM on one of the region’s most ambitious refining projects. Operations are slated to begin in 2025. Control will pass fully to Codelco in 2031 and remain with the company through 2060. Once scaled, the venture could reach an output of 330,000 tons of lithium carbonate equivalent each year. The goal is simple: keep more of the value of the lithium boom at home.

Private companies are widening their footprint as well. Rio Tinto is expanding across the Lithium Triangle, with Argentina’s Rincon project boosting the country’s role in the regional supply chain. Even so, Chile remains the furthest along in large scale refining plans. SQM is increasing its investment, although recent talk of new agreements with global battery makers has not been matched by public detail.

Analysts say the trend is unmistakable. Battery and electric vehicle manufacturers want reliable, high quality material that aligns with stronger environmental and social expectations. A Chilean policymaker noted that raw exports alone can no longer secure long term competitiveness. A senior figure at Rio Tinto added that integrated supply networks are becoming essential.

The road ahead is not without obstacles. Infrastructure gaps, shifting regulations, and volatile prices present real risks. Yet momentum continues to build. Investors remain engaged, automakers are exploring future contracts, and governments are moving to claim a central role in the clean energy transition.

If current plans hold, South America could evolve from a lithium reservoir into a rising force in processing and strategic supply.