Codelco, SQM seal lithium venture in Chile’s Atacama desert

Chile’s Codelco and SQM completed a landmark deal aimed at boosting lithium extraction from the country’s Atacama Desert, giving the government control of one of the world’s richest reserves of the metal.

The state-owned copper giant and lithium producer SQM formed a joint venture called NovaAndino Litio SpA by merging Codelco affiliate Minera Tarar SpA with SQM Salar SpA, the companies said in a statement on Saturday. The deal will have a positive and material impact on Codelco’s 2025 financial results, the companies said.

As part of the transaction, SQM transferred all of its mining concessions in the Salar de Maricunga to Codelco.

NovaAndino Litio will control all lithium exploration, production and sales in the Salar de Atacama until 2060, ensuring continuity under existing contracts with development agency Corfo and new agreements that will take effect from 2031 onward, according to the statement.

The partnership is a pillar of President Gabriel Boric’s agenda to have more state control in key lithium assets while boosting output in the transition away from fossil fuels. The deal cleared its final major hurdle in November, when China granted approval, conditional upon the companies honoring existing commercial commitments and continue supplying Chinese customers on a “fair, reasonable and non-discriminatory” basis.

(By Maria Clara Cobo)