On August 25, 2026, the Chilean government signed its first Special Lithium Operation Contract (CEOL) with a private enterprise under the administration of President Jose Antonio Kast. The agreement was awarded to Quiborax S.A., marking the first such contract of the current presidential term.
The CEOL authorizes Quiborax to recover and purify lithium from tailings generated during the processing of ulexite at its El Águila plant, located in the Surire salt flat. The operation does not involve new brine extraction or mining activities. The contract remains valid until either the processing and sale of approximately 20,000 metric tons of lithium carbonate equivalent (LCE) or the end of 2046, whichever comes first.
In its initial phase, the project requires confirmation of actual reserves, along with economic and technical feasibility studies. Quiborax must also obtain environmental impact assessments and sectoral permits. Engineering design, permitting, and construction are expected to take about five years, during which the company anticipates a 20% increase in its workforce. Total investment is projected at roughly 70 million US dollars.
Commenting on the development, Minister of Economy and Mining Daniel Mas stated that the government is actively encouraging private sector participation in lithium development. He emphasized that Chile must provide a solid and predictable institutional framework to ensure legal certainty for investors, positioning the country for the next lithium cycle.
The contract is seen as a strategic step in Chile’s national lithium policy, which aims to expand production while maintaining state oversight. Unlike traditional mining concessions, CEOLs are tailored agreements that allow private entities to undertake specific lithium-related activities under defined terms. The Quiborax project stands out because it reuses existing industrial residues, aligning with sustainability goals and reducing environmental impact compared to new extraction operations.
With global lithium demand surging due to the electric vehicle and energy storage markets, Chile—home to the world’s largest known lithium reserves—is racing to scale up output. This contract signals the government’s commitment to public-private collaboration, balancing resource nationalism with the need for investment and technological innovation. Industry observers are expected to watch the project’s progress closely as a test case for future CEOL awards.
