Codelco pushes Maricunga lithium project start to 2034

Chile’s state-owned copper giant Codelco said on Wednesday it now expects production from its Maricunga lithium project to begin in 2034, delaying one of the country’s flagship battery metals developments by four years.

Chairman Bernardo Fontaine said the project remains eight years away, extending the timeline set by Chile’s previous government, which had targeted first production in 2030. 

Codelco is developing Maricunga through a 2025 partnership with Rio Tinto (ASX: RIO), marking the mining giant’s entry into a Chilean lithium sector long dominated by SQM (NYSE: SQM) and Albemarle (NYSE: ALB). 

The project is central to the country’s strategy of expanding lithium production through state-led partnerships with global miners while reducing reliance on the country’s two established producers.

Earlier this year, Chile updated Codelco’s Special Lithium Operating Contract (CEOL), allowing the project to proceed under the country’s National Lithium Strategy.

The delay highlights the lengthy permitting, consultation and environmental processes facing new lithium projects even as demand for the battery metal is expected to grow over the long term. 

Chile is seeking to expand lithium production while maintaining greater state oversight through partnerships with global miners, positioning Codelco as a key player alongside private-sector operators. 

Rio Tinto already partners with the company on the Nuevo Cobre copper project and has expanded its role in Chile’s lithium market through an new agreement inked earlier this year. 

Codelco has increasingly turned to international partners to help finance its capital-intensive growth strategy.