2021 Lithium Forum: “We have to understand which path is advantageous for everyone”

The objective of the 2021 Lithium Forum—the fourth version of the event—is to analyze the lithium market and the new demands on the horizon. The forum was organized into three topic-based modules. The first discussed lithium production’s social license to operate in northern Chile.

At the event, Alejandro Bucher, Senior Vice President of Environment and Community for SQM Salar, remarked: “More than a social license, it is knowing how to integrate into society. In effect, today we are formalizing this relationship and signing long-term agreements that establish conventions and articulate how we are going to interact. This also enables us to integrate the local culture in order to include it and formalize the company’s contribution to these communities.”

The executive also pointed out that “this is not corporate social responsibility or a social license to operate, but rather an understanding that this is an advantageous path for everyone and a challenge we cannot undertake alone. When we look at the lithium industry, which is focused on improving sustainability in the world, we also see an industry that has bigger challenges and demands in terms of sustainability than other industries.”

In that spirit, this dialog has translated into the signing of several cooperation agreements and dialog with the communities of Camar, Toconao, Talabre, Quillagua and Guatacondo, and other agreements that are in the process of being signed, as well as conversations with different community organizations. This helps us develop a new form of engagement that takes direct responsibility for the concerns and perceptions of these communities in order to support their long-term life plans.

In addition to creating shared social value, SQM reaffirms its commitment to sustainability by adding it to our corporate values of Safety, Excellence and Integrity and prioritizing it as a guide. This aspiration is based on three action areas: Our Environment, Our People and Our Contribution to Sustainable Industries. In each area, the company has set goals and commitments like: cutting brine extraction in half by 2030, which began with a 20% reduction in November 2020. Additionally, the operation aims to reduce continental water consumption by 65% by 2040, starting with 40% by 2030 according to 2020 projections. The operation also aspires to be carbon neutral in all our products by 2040.

Lithium Life Cycle and Sustainability
In the last module at the 2021 Lithium Forum, experts analyzed the life cycle and sustainability of lithium. The discussion was moderated by María Cristina Betancourt, Development Manager for the National Mining Society (Sonami); and one of the panelists was Javier Silva, Salar Contract and Sustainability Manager for SQM.

“Lithium has enjoyed growing demand and both companies (SQM and Albemarle) are currently mining deposits to do it better. From here we can do our part to decarbonize the transport matrix leaving northern Chile for the rest of the country.”

As for the industry’s challenges, Silva explained, “In Tarapacá the plan is to start to replace continental water with seawater. We are doing this to leave that water for those who need it. All of this is being done with technological changes. Very little water is used. But, even so, we want to continue to reduce use with changes in production methods.”

In contrast to most of the metallic mining industry in Chile, SQM does not export “concentrate,” or intermediate products. The mining company locally produces and exports very high-value-added products to the world, which keeps it at the forefront of highly competitive markets. This has been achieved through years of investments and in-house knowledge building. Furthermore, SQM is the only company in Chile that produces lithium hydroxide, a key component of batteries and the global development of electromobility.