Reuters reported that Chile will auction contracts for the right to explore and produce lithium as the world's top copper producer seeks to boost its output of the material used in hybrid vehicles, computer and smartphone batteries.

As per report, development of lithium of which Chile holds a quarter of world reserves has been stunted by a constitutional ban on concessions. Companies are allowed to rent lithium producing properties but the mineral never belongs to the firm. Special contracts for lithium production however are legally permitted.

Mr Pablo Wagner mining subsecretary said that "The right to exploit around 100,000 tonnes of lithium for 20 years will be auctioned. We know that if we delay a lot in developing this project we'll lose competitiveness and we could halve our market share."

Mr Wagner said that a domestic and international roadshow is scheduled for the second quarter of the year and the first contract should be awarded by the end of 2012.

(Sourced from Reuters)