The $400 million plant expansion, once complete, would allow the Chinese-backed SQM to eventually produce as much as 180,000 tonnes of lithium carbonate a year from its Atacama salt flat operations.
Brazil's government wants Congress to reconsider a decades-old proposal to allow mining in indigenous reserves, which occupy 13% of the country's territory.
Mining stopped on March 8, when members of the Asociación Obrera Minera Argentina (AOMA) downed tools, and processing activities have now also ceased following the exhaustion of surface stockpiles.