In May, state-owned mining company ENAMI launched a search for a partner to offer financial or operational support in Altoandinos, for a stake in the property that has yet to be determined.

Mining giant Rio Tinto and Chinese electric vehicle maker BYD are among six companies eligible to submit proposals to develop a lithium project in Chile's Altoandinos salt flat, state-owned mining company ENAMI said Thursday.

The salt flat in the northern Atacama region is one of the areas where the Chilean government intends to boost lithium production in partnership with the State by launching new projects.

ENAMI launched its search in May to find a partner to offer financial backing or operational support in Altoandinos, for an ownership stake that is yet to be determined.

The full list of contenders that could advance in the process includes French mining company Eramet, which holds mining concessions in the Altoandinos deposit, as well as South Korean companies LG Energy and Posco, and China's CNGR Advanced Material.

Twelve companies initially expressed interest, ENAMI reported last month.

Chile is the world's second largest producer of lithium, a key material for most batteries that power electric vehicles.

ENAMI is now expected to begin negotiations with the final round of applicants and provide them with technical details on the Altoandinos lithium deposit.

It aims to formalize a public-private partnership by March 2025, ENAMI said.

"We are moving forward with concrete actions for the National Lithium Strategy, with this announcement of the companies that meet the high selection standards," ENAMI head Ivan Mlynarz said in a statement.

ENAMI, which processes copper for local mining companies, has been tasked with spearheading the government's first forays into lithium alongside state mining giant Codelco, which is also seeking a partner in the Maricunga salt flat.