Salar de Atacama expansion to lift Chile lithium output to 67,300 tonnes in 2026
Chile’s lithium output climbed 10.1% to 64,100 tonnes in 2025, driven by expansions at Salar de Atacama led by SQM and Albemarle. Production is projected to rise another 4.9% to 67,300 tonnes in 2026 while President Kast merges mining and economy ministries with no immediate legal changes.
1. Lithium production growth
Chile’s lithium output rose 10.1% to 64,100 tonnes in 2025, driven by capacity expansions at the Salar de Atacama operations. Output is forecast to increase by 4.9% to 67,300 tonnes in 2026, underpinned by operational improvements at existing facilities.
2. Dominance of SQM and Albemarle
SQM and Albemarle account for the majority of Chile’s lithium supply, highlighting the concentrated nature of the country’s brine-based carbonate sector. Changes in output at Salar de Atacama directly influence global lithium availability and pricing dynamics.
3. Policy and regulatory shift
President Jose Antonio Kast merged the Ministries of Mining and Economy after taking office on March 11, 2026, signaling a shift toward a more market-oriented framework. The administration aims to reduce regulatory and tax burdens to attract broader private investment into the lithium sector.
4. Near-term operating outlook
Despite the policy rhetoric, lithium remains a non-concessionable resource under existing law, with no material legal reforms enacted as of mid-March 2026. Current projects are expected to proceed under the National Mining Code without significant changes in the near term.