Chilean mining company SQM finds itself embroiled in a public dispute with major shareholder Tianqi Lithium Corp of China regarding SQM’s planned partnership with state-owned copper producer Codelco. The disagreement escalated when Tianqi, holding a 20% stake in SQM, expressed concerns about transparency in the negotiations with Codelco over the joint venture, set to commence in 2025 under Chilean government policy aimed at enhancing state control in the lithium sector. As SQM and Codelco work towards finalizing the agreement by May 31, Tianqi’s Chief Executive Frank Ha raised doubts about the deal’s transparency and hinted at Tianqi’s interest in exploring lithium opportunities in Chile’s Atacama salt flat independently if the SQM-Codelco partnership falters. SQM’s Board Chairman Gonzalo Guerrero questioned Tianqi’s intentions and rejected calls for a shareholder vote on the Codelco deal, citing potential veto powers that could benefit Tianqi. Guerrero also highlighted Tianqi’s recent board member resignation and raised concerns about Tianqi’s long-term plans for SQM. Tianqi’s acquisition of a significant stake in SQM in 2018 raised regulatory concerns over market dominance, leading to restrictions on access to SQM’s sensitive business information. The ongoing discord underscores the complexities surrounding strategic partnerships and shareholder dynamics in Chile’s lithium industry, where global players vie for control amid evolving market conditions and regulatory scrutiny.
SQM and Tianqi Clash Over Codelco Deal in Chilean Lithium Industry