Lithium output at SQM-Codelco venture edges out forecasts

Bloomberg News | February 23, 2026 | 3:14 pm Battery Metals Top Companies Latin America Lithium

Lithium fields in the Atacama desert in Chile. Stock image.

SQM’s lithium partnership with Codelco churned out slightly more of the battery metal than forecast last year as the industry continues to emerge from a global glut.

The Nova Andino Litio SpA venture produced 233,000 metric tons of lithium carbonate equivalent in 2025, chairman Maximo Pacheco said in a Monday presentation at the BMO metals and mining conference in Florida. That output was up from 2024 levels and compares with the latest guidance of “close to 230,000 tons” delivered by SQM in November.

Chile’s state-owned Codelco has a controlling interest in NovAndino’s lithium assets, while SQM controls the operations at northern Chile’s sprawling Atacama salt flat. SQM is scheduled to deliver fourth-quarter results on Friday, offering more guidance on the partnership.

NovAndino, which has the world’s biggest source of lithium from brine, is expanding in a bet on low costs and a bullish outlook for battery demand, targeting a roughly 30% production increase in the coming years. Output is set to rise gradually to 300,000 tons before the end of the decade, NovAndino chief executive officer Carlos Díaz said last month.

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

The venture aims to capture double-digit growth in global lithium consumption as large-scale battery storage adds to demand from electric vehicles. The expansion could pressure higher-cost rivals.

The Atacama operation employs an evaporation technique that uses less water, chemicals and energy than hard-rock mining, as practiced in top producer Australia. NovAndino is preparing to submit a proposal to regulators to introduce new techniques such as direct extraction, which could further lift output.

Meanwhile, Codelco’s Maricunga lithium partnership with Rio Tinto Group continues to wait for antitrust approvals from Chile and China before signing a shareholders’ agreement, Pacheco said in his presentation. He said Codelco produced 1.33 million tons of copper from its mines in Chile last year, with capital expenditure reaching a record $5.28 billion.

Oversight of Codelco’s El Teniente underground copper mine, which suffered a deadly collapse in July, will be integrated into the company’s executive committee due to its size and complexity, Pacheco said, adding that the design of this process will be supported by an independent consultancy.