Lithium privatization

Today I will write about a contingently topic, the privatization of the lithium on Chile, Chile has one of the largest reserves of lithium in the world, and today, we have a big social confrontation because this reserves are being concessioned to international companies.

The “small print” says that the different taxation left to Chile the 66% of the earnings, and it’s important to say that the risk in this investment (lithium exploitation) is very high for two reasons:

First, the use of lithium is in the technological industry (made of batteries), and technology advance, is replaceable, could happen that a Asian man invent a better way to made batteries and the inversion is lost.

Second, lithium reserves exist in the sea, could happen to someone find a way to remove it from the sea, and the inversion is lost to.

Third, in Chile doesn’t exist the capacity to extract the mineral itself, we don’t have man power or processing industry to exploit this mineral.

For this reasons, I think that the privatization is not soooo bad, but logically would be better process the mineral by ourselves, but for this we need to strengthen the industry and universities, I think that’s the north that Chile must to walk.

That’s it, thanks for reading! =D