Keep Us Strong WikiLeaks logo

Currently released so far... 251287 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AEMR ASEC AMGT AE AS AMED AVIAN AU AF AORC AGENDA AO AR AM APER AFIN ATRN AJ ABUD ARABL AL AG AODE ALOW ADANA AADP AND APECO ACABQ ASEAN AA AFFAIRS AID AGR AY AGS AFSI AGOA AMB ARF ANET ASCH ACOA AFLU AFSN AMEX AFDB ABLD AESC AFGHANISTAN AINF AVIATION ARR ARSO ANDREW ASSEMBLY AIDS APRC ASSK ADCO ASIG AC AZ APEC AFINM ADB AP ACOTA ASEX ACKM ASUP ANTITERRORISM ADPM AINR ARABLEAGUE AGAO AORG AMTC AIN ACCOUNT ASECAFINGMGRIZOREPTU AIDAC AINT ARCH AMGTKSUP ALAMI AMCHAMS ALJAZEERA AVIANFLU AORD AOREC ALIREZA AOMS AMGMT ABDALLAH AORCAE AHMED ACCELERATED AUC ALZUGUREN ANGEL AORL ASECIR AMG AMBASSADOR AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL ADM ASES ABMC AER AMER ASE AMGTHA ARNOLDFREDERICK AOPC ACS AFL AEGR ASED AFPREL AGRI AMCHAM ARNOLD AN ANATO AME APERTH ASECSI AT ACDA ASEDC AIT AMERICA AMLB AMGE ACTION AGMT AFINIZ ASECVE ADRC ABER AGIT APCS AEMED ARABBL ARC ASO AIAG ACEC ASR ASECM ARG AEC ABT ADIP ADCP ANARCHISTS AORCUN AOWC ASJA AALC AX AROC ARM AGENCIES ALBE AK AZE AOPR AREP AMIA ASCE ALANAZI ABDULRAHMEN ABDULHADI AINFCY ARMS ASECEFINKCRMKPAOPTERKHLSAEMRNS AGRICULTURE AFPK AOCR ALEXANDER ATRD ATFN ABLG AORCD AFGHAN ARAS AORCYM AVERY ALVAREZ ACBAQ ALOWAR ANTOINE ABLDG ALAB AMERICAS AFAF ASECAFIN ASEK ASCC AMCT AMGTATK AMT APDC AEMRS ASECE AFSA ATRA ARTICLE ARENA AISG AEMRBC AFR AEIR ASECAF AFARI AMPR ASPA ASOC ANTONIO AORCL ASECARP APRM AUSTRALIAGROUP ASEG AFOR AEAID AMEDI ASECTH ASIC AFDIN AGUIRRE AUNR ASFC AOIC ANTXON ASA ASECCASC ALI AORCEUNPREFPRELSMIGBN ASECKHLS ASSSEMBLY ASECVZ AI ASECPGOV ASIR ASCEC ASAC ARAB AIEA ADMIRAL AUSGR AQ AMTG ARRMZY ANC APR AMAT AIHRC AFU ADEL AECL ACAO AMEMR ADEP AV AW AOR ALL ALOUNI AORCUNGA ALNEA ASC AORCO ARMITAGE AGENGA AGRIC AEM ACOAAMGT AGUILAR AFPHUM AMEDCASCKFLO AFZAL AAA ATPDEA ASECPHUM ASECKFRDCVISKIRFPHUMSMIGEG
ETRD ETTC EU ECON EFIN EAGR EAID ELAB EINV ENIV ENRG EPET EZ ELTN ELECTIONS ECPS ET ER EG EUN EIND ECONOMICS EMIN ECIN EINT EWWT EAIR EN ENGR ES EI ETMIN EL EPA EARG EFIS ECONOMY EC EK ELAM ECONOMIC EAR ESDP ECCP ELN EUM EUMEM ECA EAP ELEC ECOWAS EFTA EXIM ETTD EDRC ECOSOC ECPSN ENVIRONMENT ECO EMAIL ECTRD EREL EDU ENERG ENERGY ENVR ETRAD EAC EXTERNAL EFIC ECIP ERTD EUC ENRGMO EINZ ESTH ECCT EAGER ECPN ELNT ERD EGEN ETRN EIVN ETDR EXEC EIAD EIAR EVN EPRT ETTF ENGY EAIDCIN EXPORT ETRC ESA EIB EAPC EPIT ESOCI ETRB EINDQTRD ENRC EGOV ECLAC EUR ELF ETEL ENRGUA EVIN EARI ESCAP EID ERIN ELAN ENVT EDEV EWWY EXBS ECOM EV ELNTECON ECE ETRDGK EPETEIND ESCI ETRDAORC EAIDETRD ETTR EMS EAGRECONEINVPGOVBN EBRD EUREM ERGR EAGRBN EAUD EFI ETRDEINVECINPGOVCS EPEC ETRO ENRGY EGAR ESSO EGAD ENV ENER EAIDXMXAXBXFFR ELA EET EINVETRD EETC EIDN ERGY ETRDPGOV EING EMINCG EINVECON EURM EEC EICN EINO EPSC ELAP ELABPGOVBN EE ESPS ETRA ECONETRDBESPAR ERICKSON EEOC EVENTS EPIN EB ECUN EPWR ENG EX EH EAIDAR EAIS ELBA EPETUN ETRDEIQ EENV ECPC ETRP ECONENRG EUEAID EWT EEB EAIDNI ESENV EADM ECN ENRGKNNP ETAD ETR ECONETRDEAGRJA ETRG ETER EDUC EITC EBUD EAIF EBEXP EAIDS EITI EGOVSY EFQ ECOQKPKO ETRGY ESF EUE EAIC EPGOV ENFR EAGRE ENRD EINTECPS EAVI ETC ETCC EIAID EAIDAF EAGREAIDPGOVPRELBN EAOD ETRDA EURN EASS EINVA EAIDRW EON ECOR EPREL EGPHUM ELTM ECOS EINN ENNP EUPGOV EAGRTR ECONCS ETIO ETRDGR EAIDB EISNAR EIFN ESPINOSA EAIDASEC ELIN EWTR EMED ETFN ETT EADI EPTER ELDIN EINVEFIN ESS ENRGIZ EQRD ESOC ETRDECD ECINECONCS EAIT ECONEAIR ECONEFIN EUNJ ENRGKNNPMNUCPARMPRELNPTIAEAJMXL ELAD EFIM ETIC EFND EFN ETLN ENGRD EWRG ETA EIN EAIRECONRP EXIMOPIC ERA ENRGJM ECONEGE ENVI ECHEVARRIA EMINETRD EAD ECONIZ EENG ELBR EWWC ELTD EAIDMG ETRK EIPR EISNLN ETEX EPTED EFINECONCS EPCS EAG ETRDKIPR ED EAIO ETRDEC ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID ECONEINVEFINPGOVIZ ERNG EFINU EURFOR EWWI ELTNSNAR ETD EAIRASECCASCID EOXC ESTN EAIDAORC EAGRRP ETRDEMIN ELABPHUMSMIGKCRMBN ETRDEINVTINTCS EGHG EAIDPHUMPRELUG EAGRBTIOBEXPETRDBN EDA EPETPGOV ELAINE EUCOM EMW EFINECONEAIDUNGAGM ELB EINDETRD EMI ETRDECONWTOCS EINR ESTRADA EHUM EFNI ELABV ENR EMN EXO EWWTPRELPGOVMASSMARRBN EATO END EP EINVETC ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID ELTRN EIQ ETTW EAI ENGRG ETRED ENDURING ETTRD EAIDEGZ EOCN EINF EUPREL ENRL ECPO ENLT EEFIN EPPD ECOIN EUEAGR EISL EIDE ENRGSD EINVECONSENVCSJA EAIG ENTG EEPET EUNCH EPECO ETZ EPAT EPTE EAIRGM ETRDPREL EUNGRSISAFPKSYLESO ETTN EINVKSCA ESLCO EBMGT ENRGTRGYETRDBEXPBTIOSZ EFLU ELND EFINOECD EAIDHO EDUARDO ENEG ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EFINTS ECONQH ENRGPREL EUNPHUM EINDIR EPE EMINECINECONSENVTBIONS EFINM ECRM EQ EWWTSP ECONPGOVBN
KFLO KPKO KDEM KFLU KTEX KMDR KPAO KCRM KIDE KN KNNP KG KMCA KZ KJUS KWBG KU KDMR KAWC KCOR KPAL KOMC KTDB KTIA KISL KHIV KHUM KTER KCFE KTFN KS KIRF KTIP KIRC KSCA KICA KIPR KPWR KWMN KE KGIC KGIT KSTC KACT KSEP KFRD KUNR KHLS KCRS KRVC KUWAIT KVPR KSRE KMPI KMRS KNRV KNEI KCIP KSEO KITA KDRG KV KSUM KCUL KPET KBCT KO KSEC KOLY KNAR KGHG KSAF KWNM KNUC KMNP KVIR KPOL KOCI KPIR KLIG KSAC KSTH KNPT KINL KPRP KRIM KICC KIFR KPRV KAWK KFIN KT KVRC KR KHDP KGOV KPOW KTBT KPMI KPOA KRIF KEDEM KFSC KY KGCC KATRINA KWAC KSPR KTBD KBIO KSCI KRCM KNNB KBNC KIMT KCSY KINR KRAD KMFO KCORR KW KDEMSOCI KNEP KFPC KEMPI KBTR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNPP KTTB KTFIN KBTS KCOM KFTN KMOC KOR KDP KPOP KGHA KSLG KMCR KJUST KUM KMSG KHPD KREC KIPRTRD KPREL KEN KCSA KCRIM KGLB KAKA KWWT KUNP KCRN KISLPINR KLFU KUNC KEDU KCMA KREF KPAS KRKO KNNC KLHS KWAK KOC KAPO KTDD KOGL KLAP KECF KCRCM KNDP KSEAO KCIS KISM KREL KISR KISC KKPO KWCR KPFO KUS KX KWCI KRFD KWPG KTRD KH KLSO KEVIN KEANE KACW KWRF KNAO KETTC KTAO KWIR KVCORR KDEMGT KPLS KICT KWGB KIDS KSCS KIRP KSTCPL KDEN KLAB KFLOA KIND KMIG KPPAO KPRO KLEG KGKG KCUM KTTP KWPA KIIP KPEO KICR KNNA KMGT KCROM KMCC KLPM KNNPGM KSIA KSI KWWW KOMS KESS KMCAJO KWN KTDM KDCM KCM KVPRKHLS KENV KCCP KGCN KCEM KEMR KWMNKDEM KNNPPARM KDRM KWIM KJRE KAID KWMM KPAONZ KUAE KTFR KIF KNAP KPSC KSOCI KCWI KAUST KPIN KCHG KLBO KIRCOEXC KI KIRCHOFF KSTT KNPR KDRL KCFC KLTN KPAOKMDRKE KPALAOIS KESO KKOR KSMT KFTFN KTFM KDEMK KPKP KOCM KNN KISLSCUL KFRDSOCIRO KINT KRG KWMNSMIG KSTCC KPAOY KFOR KWPR KSEPCVIS KGIV KSEI KIL KWMNPHUMPRELKPAOZW KQ KEMS KHSL KTNF KPDD KANSOU KKIV KFCE KTTC KGH KNNNP KK KSCT KWNN KAWX KOMCSG KEIM KTSD KFIU KDTB KFGM KACP KWWMN KWAWC KSPA KGICKS KNUP KNNO KISLAO KTPN KSTS KPRM KPALPREL KPO KTLA KCRP KNMP KAWCK KCERS KDUM KEDM KTIALG KWUN KPTS KPEM KMEPI KAWL KHMN KCRO KCMR KPTD KCROR KMPT KTRF KSKN KMAC KUK KIRL KEM KSOC KBTC KOM KINP KDEMAF KTNBT KISK KRM KWBW KBWG KNNPMNUC KNOP KSUP KCOG KNET KWBC KESP KMRD KEBG KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KPWG KOMCCO KRGY KNNF KPROG KJAN KFRED KPOKO KM KWMNCS KMPF KJWC KJU KSMIG KALR KRAL KDGOV KPA KCRMJA KCRI KAYLA KPGOV KRD KNNPCH KFEM KPRD KFAM KALM KIPRETRDKCRM KMPP KADM KRFR KMWN KWRG KTIAPARM KTIAEUN KRDP KLIP KDDEM KTIAIC KWKN KPAD KDM KRCS KWBGSY KEAI KIVP KPAOPREL KUNH KTSC KIPT KNP KJUSTH KGOR KEPREL KHSA KGHGHIV KNNR KOMH KRCIM KWPB KWIC KINF KPER KILS KA KNRG KCSI KFRP KLFLO KFE KNPPIS KQM KQRDQ KERG KPAOPHUM KSUMPHUM KVBL KARIM KOSOVO KNSD KUIR KWHG KWBGXF KWMNU KPBT KKNP KERF KCRT KVIS KWRC KVIP KTFS KMARR KDGR KPAI KDE KTCRE KMPIO KUNRAORC KHOURY KAWS KPAK KOEM KCGC KID KVRP KCPS KIVR KBDS KWOMN KIIC KTFNJA KARZAI KMVP KHJUS KPKOUNSC KMAR KIBL KUNA KSA KIS KJUSAF KDEV KPMO KHIB KIRD KOUYATE KIPRZ KBEM KPAM KDET KPPD KOSCE KJUSKUNR KICCPUR KRMS KWMNPREL KWMJN KREISLER KWM KDHS KRV KPOV KWMNCI KMPL KFLD KWWN KCVM KIMMITT KCASC KOMO KNATO KDDG KHGH KRF KSCAECON KWMEN KRIC
PREL PINR PGOV PHUM PTER PE PREF PARM PBTS PINS PHSA PK PL PM PNAT PHAS PO PROP PGOVE PA PU POLITICAL PPTER POL PALESTINIAN PHUN PIN PAMQ PPA PSEC POLM PBIO PSOE PDEM PAK PF PKAO PGOVPRELMARRMOPS PMIL PV POLITICS PRELS POLICY PRELHA PIRN PINT PGOG PERSONS PRC PEACE PROCESS PRELPGOV PROV PFOV PKK PRE PT PIRF PSI PRL PRELAF PROG PARMP PERL PUNE PREFA PP PGOB PUM PROTECTION PARTIES PRIL PEL PAGE PS PGO PCUL PLUM PIF PGOVENRGCVISMASSEAIDOPRCEWWTBN PMUC PCOR PAS PB PKO PY PKST PTR PRM POUS PRELIZ PGIC PHUMS PAL PNUC PLO PMOPS PHM PGOVBL PBK PELOSI PTE PGOVAU PNR PINSO PRO PLAB PREM PNIR PSOCI PBS PD PHUML PERURENA PKPA PVOV PMAR PHUMCF PUHM PHUH PRELPGOVETTCIRAE PRT PROPERTY PEPFAR PREI POLUN PAR PINSF PREFL PH PREC PPD PING PQL PINSCE PGV PREO PRELUN POV PGOVPHUM PINRES PRES PGOC PINO POTUS PTERE PRELKPAO PRGOV PETR PGOVEAGRKMCAKNARBN PPKO PARLIAMENT PEPR PMIG PTBS PACE PETER PMDL PVIP PKPO POLMIL PTEL PJUS PHUMNI PRELKPAOIZ PGOVPREL POGV PEREZ POWELL PMASS PDOV PARN PG PPOL PGIV PAIGH PBOV PETROL PGPV PGOVL POSTS PSO PRELEU PRELECON PHUMPINS PGOVKCMABN PQM PRELSP PRGO PATTY PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PGVO PROTESTS PRELPLS PKFK PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PARAGRAPH PRELGOV POG PTRD PTERM PBTSAG PHUMKPAL PRELPK PTERPGOV PAO PRIVATIZATION PSCE PPAO PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PARALYMPIC PRUM PKPRP PETERS PAHO PARMS PGREL PINV POINS PHUMPREL POREL PRELNL PHUMPGOV PGOVQL PLAN PRELL PARP PROVE PSOC PDD PRELNP PRELBR PKMN PGKV PUAS PRELTBIOBA PBTSEWWT PTERIS PGOVU PRELGG PHUMPRELPGOV PFOR PEPGOV PRELUNSC PRAM PICES PTERIZ PREK PRELEAGR PRELEUN PHUME PHU PHUMKCRS PRESL PRTER PGOF PARK PGOVSOCI PTERPREL PGOVEAID PGOVPHUMKPAO PINSKISL PREZ PGOVAF PARMEUN PECON PINL POGOV PGOVLO PIERRE PRELPHUM PGOVPZ PGOVKCRM PBST PKPAO PHUMHUPPS PGOVPOL PASS PPGOV PROGV PAGR PHALANAGE PARTY PRELID PGOVID PHUMR PHSAQ PINRAMGT PSA PRELM PRELMU PIA PINRPE PBTSRU PARMIR PEDRO PNUK PVPR PINOCHET PAARM PRFE PRELEIN PINF PCI PSEPC PGOVSU PRLE PDIP PHEM PRELB PORG PGGOC POLG POPDC PGOVPM PWMN PDRG PHUMK PINB PRELAL PRER PFIN PNRG PRED POLI PHUMBO PHYTRP PROLIFERATION PHARM PUOS PRHUM PUNR PENA PGOVREL PETRAEUS PGOVKDEM PGOVENRG PHUS PRESIDENT PTERKU PRELKSUMXABN PGOVSI PHUMQHA PKISL PIR PGOVZI PHUMIZNL PKNP PRELEVU PMIN PHIM PHUMBA PUBLIC PHAM PRELKPKO PMR PARTM PPREL PN PROL PDA PGOVECON PKBL PKEAID PERM PRELEZ PRELC PER PHJM PGOVPRELPINRBN PRFL PLN PWBG PNG PHUMA PGOR PHUMPTER POLINT PPEF PKPAL PNNL PMARR PAC PTIA PKDEM PAUL PREG PTERR PTERPRELPARMPGOVPBTSETTCEAIRELTNTC PRELJA POLS PI PNS PAREL PENV PTEROREP PGOVM PINER PBGT PHSAUNSC PTERDJ PRELEAID PARMIN PKIR PLEC PCRM PNET PARR PRELETRD PRELBN PINRTH PREJ PEACEKEEPINGFORCES PEMEX PRELZ PFLP PBPTS PTGOV PREVAL PRELSW PAUM PRF PHUMKDEM PATRICK PGOVKMCAPHUMBN PRELA PNUM PGGV PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PIND PTEP PTERKS PGOVJM PGOT PRELMARR PGOVCU PREV PREFF PRWL PET PROB PRELPHUMP PHUMAF PVTS PRELAFDB PSNR PGOVECONPRELBU PGOVZL PREP PHUMPRELBN PHSAPREL PARCA PGREV PGOVDO PGON PCON PODC PRELOV PHSAK PSHA PGOVGM PRELP POSCE PGOVPTER PHUMRU PINRHU PARMR PGOVTI PPEL PMAT PAN PANAM PGOVBO PRELHRC

Browse by classification

Community resources

courage is contagious

Viewing cable 09SANTIAGO252, CHILE'S LITHIUM: WORLD'S LEADING PRODUCER EXPANDING

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09SANTIAGO252.
Reference ID Created Released Classification Origin
09SANTIAGO252 2009-03-17 12:20 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Santiago
VZCZCXRO1584
PP RUEHAST RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM RUEHTRO
DE RUEHSG #0252/01 0761220
ZNR UUUUU ZZH
P 171220Z MAR 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC PRIORITY 4654
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHQT/AMEMBASSY QUITO 2244
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
UNCLAS SECTION 01 OF 02 SANTIAGO 000252 
 
STATE FOR WHA/BSC, WHA/EPSC AND OES/ENV 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENVR EAID EAGR ECON ETRD TBIO CI
SUBJECT:  CHILE'S LITHIUM: WORLD'S LEADING PRODUCER EXPANDING 
CAPACITY TO MEET GLOBAL DEMAND 
 
REF:  LA PAZ 267 
 
1. (SBU) SUMMARY:  Chile is the leading lithium chemical producer in 
the world.  Two companies, Sociedad Qumica y Minera de Chile S.A. 
(SQM) -- the world's biggest producer of iodine and lithium -- and 
Chemetall of Germany, dominate the production of lithium carbonate, 
largely by exploiting brine sources in Chile.  In 2008, SQM produced 
95,400 MT of lithium, which is 30 percent of the world market share, 
and Chemetall supplied about 28 percent.  SQM, which expanded its 
lithium carbonate capacity in 2008 from 30,000 to 40,000 tons/year 
in 2008, plans to expand production capacity further in 2009-2010 to 
meet growing lithium demand.  End summary. 
 
Chile Replaces U.S. as Leading Producer of Lithium 
--------------------------------------------- ----- 
 
2. (U) For almost 50 years, the United States dominated the world 
lithium market, and North Carolina used to be the largest U.S. 
producer.  In the mid-1990s, Chile became the leading producer of 
lithium -- the lightest metal with physical properties that make it 
well-suited to store energy.  Lithium has become a key part of 
rechargeable batteries, particularly those used in consumer 
electronics. 
 
3. (U) Chile began producing lithium carbonates in 1984.  After the 
discovery that Chilean brines were a lower-cost source and Chilean 
operations cut prices to gain market share, North Carolina's lithium 
mining operations closed in 1998.  Today the only active lithium 
plant in the U.S. is a brine operation in Nevada, which produces an 
unknown proprietary amount of the metal. 
 
4. (U) Despite being an abundant metal, economically viable lithium 
deposits are not plentiful.  Along with Bolivia, which faces 
significant infrastructure and political challenges to developing 
its lithium resources, Chile has the most extensive lithium reserves 
in the world.  According to the U.S. Geological Service (USGS), 
Bolivia has an estimated 5.4 million tons of lithium, Chile has 3 
million tons, China has 1.1 million tons, and the U.S. has about 
410,000 tons.  USGS estimates that Chile's Salar de Atacama contains 
approximately 27 percent of the world's reserve base of the metal. 
 
 
5. (U) Chile is particularly well positioned to take advantage of 
recent demand increases for lithium.  The battery industry doubled 
its consumption of lithium carbonate between 2003 and 2007, and some 
analysts are predicting double-digit annual sales growth for lithium 
carbonate for at least the next three years.  In addition, lithium 
ion (Li-ion) batteries are gaining in popularity for defense, 
automotive, and aerospace applications due to their high energy 
density.  Li-ion batteries may be adopted by the global automobile 
industry as it transitions to more electric vehicles. 
 
Two Companies Dominate Lithium Market 
------------------------------------- 
 
6. (U) Two companies, Sociedad Qumica y Minera de Chile S.A. (SQM) 
-- the world's biggest producer of iodine and lithium -- and 
Chemetall of Germany, through its Chilean branch called La Sociedad 
Chilena de Lithio, dominate the production of lithium carbonate by 
exploiting brine sources in Chile.  In 2007, Chile exported 41,125 
tons of lithium carbonate, as well as small amounts of lithium 
hydroxide and lithium chloride.  Reflecting a production increase in 
2008, SQM alone produced 95,400 MT of lithium in 2008 -- 30 percent 
of the world market share and all of it from Chile.  A close second, 
Chemetall, which mines lithium from both the U.S. and Chile, had 
about 28 percent of the world market last year. 
 
Lithium is a Material of "Nuclear Interest" 
------------------------------------------- 
 
7. (U) Lithium is regarded as an issue of national security. 
Despite huge investments in their mining operations in northern 
Chile, neither company owns Chile's lithium reserves.  This is 
because lithium is regarded as a "material of nuclear interest" and 
is regulated by Chile's Nuclear Energy Commission (CChEN), which 
owns/controls the reserves.  Under Chilean law, lithium concessions 
are handled outside the general system for granting mining 
concessions, and are subject to a special administrative concession 
system. 
 
SQM Increasing Lithium Production Capacity 
------------------------------------------ 
 
8. (U) SQM started operations in Chile in 1996 and, as of December 
2008, held rights to exploit the mineral resources of 197,000 
hectacres in Salar de Atacama.  Although the total reserves of Salar 
de Atacama are unknown and subject to ever-evolving technology, a 
 
SANTIAGO 00000252  002 OF 002 
 
 
recent SQM presentation estimated the site at approximately 18 
million tons of lithium-carbonate equivalent. 
 
9. (U) SQM, which gets about 11 percent of its revenue from lithium, 
recently reported profits of $501.41 million in 2008, up from $180 
million in 2007.  SQM's Chief Executive Officer indicated to the 
press that lithium demand would grow in 2009 and profits are 
expected to increase.  The company is also counting on lower costs 
in 2009 in key areas including energy, raw materials and exchange 
rates. 
 
10. (U) SQM expanded its capacity to extract lithium carbonate from 
30,000 to 40,000 tons/year in the third quarter of 2008 and is 
projecting capital expenditures of $300 million this year, some of 
which will go toward expanding lithium capacity.  The company 
announced in January that it successfully placed two series of bonds 
in the Chilean market for approximately US$173 million.  The 
financial resources will be used by SQM to refinance short- and 
long-term debt and to fund its capital expenditures program. 
 
Chile's Lithium Faces Competition From China 
-------------------------------------------- 
 
11. (U) Chile's lithium producers face competition from China, which 
supplies about 23 percent of the world's lithium carbonate.  China's 
costs have historically been higher because it extracts lithium from 
spodumene minerals.  Recently, however, China started producing 
lithium from brine, which is a cheaper method of extraction. 
 
COMMENT:  Chile's Position Secure in the Short-Term 
--------------------------------------------- ------ 
 
13. (SBU) SQM anticipates being able to ride out the current 
economic crisis based, in part, on increasing consumer demand for 
lithium.  Possible development of Bolivia's extensive reserves 
(reftel), uncertainties about the technology for electric car 
batteries, increasing competition from China and a potentially 
evolving lithium recycling market, however, could change the 
long-term picture for lithium demand.  In the short-term, however, 
it appears that Chile's position as the world's leading producer of 
lithium is secure, and companies operating in Chile appear quite 
capable of stepping up to meet the challenges of increasing global 
demand for lithium from the country's substantial reserves.  End 
comment. 
SIMONS