China’s Tianqi Lithium has asked Chile’s financial regulator, the Financial Market Commission (CMF), to reconsider its decision that the planned lithium joint venture between state-run Codelco and miner SQM does not need shareholder approval, according to a report by the Chilean newspaper La Tercera.
The CMF had earlier this month ruled that the SQM-Codelco lithium deal would not require a vote by SQM shareholders, despite arguments made by Tianqi, which owns a 20% stake in SQM.
The newspaper reported that the CMF will now have 15 working days to issue its opinion on Tianqi’s request for reconsideration.
Last week, Tianqi had indicated that it was evaluating possible legal action against the CMF’s ruling on the SQM-Codelco agreement.
The deal between Codelco and SQM is a key part of the Chilean government’s strategy to take a stronger role in lithium output in the country, which has only two producers – SQM and U.S.-based Albemarle.
Chile is the world’s second-largest producer of lithium, a critical mineral used in batteries for electric vehicles.