Chile’s state copper producer Codelco and lithium company SQM have agreed to a final deal to create a joint venture for lithium production in the Atacama salt flat. The deal will grant majority control to Codelco, a core element of President Gabriel Boric’s strategy to boost government production of lithium, a key material for electric vehicle batteries.
“Just as we have contributed to making Chile the world leader in copper production, we will now contribute to making our country a leader in the production of lithium, another mineral critical to the energy transition,” Codelco Chairman Maximo Pacheco said in a statement.
The partnership must still go through several more steps before going into effect, which could be met in the first half of 2025, according to SQM. The start of the partnership will depend on a decision from the regulator on a request from China’s Tianqi Lithium, which has about a 20% stake in SQM, for shareholders’ approval to green light the joint venture.
The deal will encompass current SQM operations in the Atacama salt flat, one of the world’s most prized areas for lithium extraction, and allow production to rise to up to 300,000 metric tons a year through 2060. Codelco will oversee general management as of 2031.