Chile has established itself as a key player in the global energy transition, thanks to its abundance of natural resources and its commitment to sustainability. The combination of renewable energies and the responsible exploitation of strategic minerals has allowed the country to make significant progress in its energy matrix and in its positioning in international markets.
Advances in renewable energy
In recent years, Chile has experienced remarkable growth in the adoption of unconventional renewable energy (ERNC). According to data from the Ministry of Energy, during the month of January 2025, nine new generation plants were incorporated into the national electricity system, adding a net installed capacity of 245 MW. Of these, most correspond to solar photovoltaic projects, highlighting the Taira Photovoltaic Park in the Antofagasta region, with 200 MW of capacity.
This impulse in the ERNCs has made it possible to diversify the country’s energy matrix, reducing dependence on fossil sources and aligning itself with international climate commitments. In addition, it has generated economic and social benefits, creating jobs and promoting regional development.
Strategic minerals: Lithium and copper as engines of development
Chile has some of the largest reserves of lithium and copper in the world, essential minerals for the manufacture of batteries and electronic components. Recent studies have revealed that lithium reserves in the country are 28% higher than previous estimates, standing at approximately 9.3 million tons. This increase opens up new opportunities for the mining industry and for the national economy.
The Minister of Mining, Aurora Williams, has emphasized the importance of diversifying markets and strengthening Chile’s presence internationally. Despite trade challenges, such as the possibility of tariffs by the United States, the demand for critical minerals remains robust, driven by the global energy transition.
Environmental and social challenges in mining
The intensive extraction of lithium in the Salar de Atacama has generated environmental and social concerns. The competition for water resources in an arid region has affected the Lickanantay indigenous communities, who demand a sustainable and equitable management of natural resources. It is crucial to find a balance between economic development and the preservation of the environment and the rights of local communities.
Public policies and international cooperation
The Chilean government has implemented policies to promote investment in renewable energy and in the mining industry, guaranteeing environmental and social standards. In addition, it has sought strategic alliances with countries such as China, with the aim of sharing experiences and technologies in the field of clean energy.
Future prospects
Chile faces the challenge of consolidating its leadership in the energy transition, addressing challenges such as sustainable resource management, the integration of renewable energies into the energy matrix and the creation of added value in the mining industry. Public-private cooperation and investment in innovation will be key to achieving these objectives.
The confluence of favorable public policies, abundant natural resources and a commitment to sustainability has positioned Chile as a benchmark in the energy transition. However, it is essential to address the environmental and social challenges associated with the exploitation of strategic minerals to ensure equitable and sustainable development.
