Published: June 5, 2025 | By: Minener Editorial Team
Amid the global technological and energy revolution, Chile is positioning itself to become the world’s second-largest producer of cobalt—the so-called “blue gold”—unlocking new economic opportunities, advancing electromobility, and fostering environmental protection.
Chile’s Bet on Cobalt: New Mining for a Sustainable Future
Chile has long been a global leader in lithium and copper production. Now, international attention turns to its mining tailings, which contain one of the largest potential reserves of cobalt outside Africa. The challenge: converting these environmental liabilities into critical resources for the energy transition and high-tech industries.
Cobalt (Co) is essential for lithium-ion batteries used in electric vehicles and electronics. It enhances energy density, reduces battery size, and prevents overheating. Additionally, cobalt is used in radiotherapy, industrial machinery, and durable corrosion-resistant alloys.
In nature, cobalt occurs in small quantities alongside nickel and copper. Currently, the Democratic Republic of the Congo leads global production with 145,000 tonnes annually, followed by Indonesia. However, Chile could overtake Indonesia, potentially producing up to 15,000 tonnes per year from tailings, according to research from the University of Chile and Universidad Andrés Bello.
Green Cobalt Project: Biotechnology and Circular Mining
The Cobalto Verde (Green Cobalt) project advocates for sustainable extraction using biotechnology. Through bioleaching, specialized microorganisms extract cobalt from tailings by dissolving minerals like pyrite, reducing chemical usage, water consumption, and environmental impact compared to conventional mining.
This innovation aims to transform abandoned tailings—often seen as environmental hazards—into new sources of wealth and employment. According to project director Pilar Parada, “moving toward green cobalt is an economic opportunity and a bold step toward a cleaner, more responsible future.”
Global Demand and Economic Impact
The International Energy Agency (IEA) projects a 207% increase in cobalt demand between 2022 and 2050, driven by electric vehicles and clean energy technologies. With an average price of US$44,700 per tonne, Chilean cobalt production could generate more than US$1.1 billion annually, diversifying the economy and attracting foreign investment.
Moreover, extracting cobalt from tailings supports a circular economy, repurposing mining waste while minimizing the industry’s environmental footprint—reinforcing Chile’s role as a global leader in sustainable mining.
Social Impact and Regional Development
The growth of cobalt production could also drive significant social and regional benefits: increased tax revenues, specialized job creation, and improved infrastructure and public services in mining regions like Atacama and Coquimbo. Thus, “blue gold” may help reduce social inequalities and improve living conditions for local communities.