Why are lithium-powered batteries important in Chile?

Lithium-powered batteries are at the heart of Chile’s transition toward clean energy and sustainable technologies. Chile’s lithium is a critical mineral in electric vehicles, renewable energy storage, and the transition to a low-carbon future.

How does lithium storage work in Chile?

Chile holds around 36% of global lithium reserves in the Atacama Desert. Lithium-based battery energy storage systems store excess renewable energy. This makes it available even during low production periods. Storage solutions help reduce grid instability and energy curtailment.

Does Engie Chile have a lithium-ion battery storage system?

Engie Chile, meanwhile, has two lithium-ion battery storage systems in operation, with a total capacity of 141 MW. At the beginning of next year, the company will inaugurate a 264 megawatt-hour, 96-battery facility, taking its total BESS portfolio in Chile to 371 MW.

Is lithium a critical energy resource in Chile?

The global and regional significance of lithium as a critical energy resource is examined. The evolution of Chile's lithium industry is analyzed, emphasizing two recent key policy initiatives: the 2015 National Lithium Commission report and the newly launched national lithium strategy. The salient features of these initiatives are outlined.

Why does Chile need lithium?

For a nation rich in the lithium reserves desperately needed to support the pace of the energy transition, it is critical that Chile adopt strategies that help meet global demand, maximize the benefits for its people, and protect the environment. The world needs lithium—a lot of it—for batteries in electric vehicles (EVs) and electricity storage.

Are battery energy storage systems a viable alternative for Chilean power producers?

With transmission lines at overcapacity and permitting delays slowing the development of new grid infrastructure, battery energy storage systems (BESS) have surged as a profitable alternative for Chilean power producers.