Chile lithium dispute with Eramet threatens to delay ENAMI-Rio Tinto’s Altoandinos project

A legal battle between Eramet and ENAMI is putting pressure on the Salares Altoandinos lithium project in Chile, a development seen as strategic for the country’s expansion plans in battery minerals.

A growing legal dispute between France’s Eramet and Chile’s state mining company ENAMI is threatening to delay development of the Salares Altoandinos lithium project, one of the most strategically important battery-metal initiatives in the country. The conflict comes as Chile pushes to expand lithium production through partnerships between the state and private investors.

ENAMI is moving ahead with Rio Tinto on a project expected to require more than $3 billion in investment, with the Altoandinos development widely viewed as a pillar of Chile’s next phase of lithium growth. According to recent reporting, the project is estimated to host about 4.5 million tonnes of lithium and could become one of the country’s most important future sources of supply, although a formal resource statement has not yet been released.

Eramet challenges ENAMI’s lithium strategy in Chile

The dispute centers on mining concessions held by Eramet in the Altoandinos area in northern Chile’s Atacama Region. The French group controls claims covering most of the La Isla and Aguilar salt flats and has argued that, as concession holder, it must be part of any viable development route for the project. ENAMI, by contrast, accuses the company of trying to obstruct the state-backed initiative after losing out in the partner selection process won by Rio Tinto.

In a court filing that became public in March, ENAMI said Eramet had launched a series of administrative and judicial actions aimed at hindering or blocking the project, including applications related to easements and water extraction. Eramet has publicly defended its position, saying it remains open to constructive solutions while continuing to protect its rights as a mining concessionaire.

CEOL rules sit at the center of the Altoandinos battle

At the heart of the conflict is Chile’s special legal framework for lithium, under which production requires a special operating contract known as a CEOL. While mining claims can give holders rights over many minerals in the ground, lithium extraction still requires this additional state authorization. Reporting indicates that control over claims in the production area became especially relevant under the current lithium development framework, giving Eramet leverage even without holding the CEOL itself.

The importance of claim ownership was underscored in March, when CleanTech Lithium announced agreed terms with the Chilean government for a 40-year CEOL covering its Laguna Verde project, a milestone the company linked to its extensive land position in the salar area. That development has sharpened attention on how Chile will balance state strategy, private investment and concession rights in other lithium districts.

Rio Tinto partnership remains strategically important for Chile

ENAMI selected Rio Tinto as its strategic partner for Altoandinos after a competitive process, saying the miner’s proposal delivered the greatest value. The offer included cash, direct lithium extraction technology and access to pilot plant capabilities at Rio Tinto’s Rincon project in Argentina, reinforcing the project’s strategic relevance for Chile’s effort to lift long-term lithium output.

The project is also politically significant under President José Antonio Kast, who took office in March, with mining and investment approvals placed high on the administration’s agenda. Chile’s mining portfolio is currently overseen by Daniel Mas, who serves as the country’s dual minister for Economy and Mining.

Court fight could weigh on Chile’s lithium expansion plans

The main risk now is timing. Industry reporting suggests that if neither ENAMI nor Eramet gives ground, the dispute could remain tied up in Chilean courts for years and may even move toward international arbitration. That would represent a major setback not only for Altoandinos, but also for Chile’s broader goal of accelerating lithium development through state-private alliances.

With Altoandinos seen as one of Chile’s largest undeveloped lithium opportunities, the outcome of the dispute will likely shape investor confidence in how the country manages concession rights, CEOL requirements and strategic partnerships in the race to expand battery-minerals production.