SQM and Codelco Forge Ahead with Lithium Mining Joint Venture
SQM, a leading global lithium producer, has declared its intention to transfer its lithium mining concessions in northern Chile to a joint venture with the state-owned copper giant, Codelco. This strategic move aims to consolidate efforts in exploiting the lithium reserves deemed strategic by the Chilean government.
Following an extraordinary shareholder meeting, SQM revealed plans to include its mining concessions in the Salar de Maricunga within the ambit of this collaboration, named Minera Tarar. This decision underscores the commitment to leveraging synergies between SQM and Codelco, particularly in the operation of the Salar de Atacama, one of the richest lithium reserves globally.
The extension of the negotiation deadline to May 31, from the initial March 31, reflects the complex nature of these discussions. This development builds on the public-private partnership announced in late December, aimed at securing lithium extraction rights in the Salar de Atacama until 2060. The partnership is envisioned as a pivotal step towards ensuring Chile's prominent role in the global energy transition.
With Codelco at the helm of Chile's strategy to enhance state oversight in lithium production—crucial for electric vehicle batteries—this joint venture represents a significant shift towards increased state participation in the lithium sector. The joint venture will see the Chilean State holding a majority stake, emphasizing the national strategic importance of lithium resources.
SQM's ongoing contract with Corfo for lithium extraction from the Salar de Atacama, set to expire in 2030, and its role as one of the two lithium producers in Chile, alongside Albemarle, place it at the forefront of this landmark agreement. This collaboration not only highlights Chile's ambitions in lithium production but also sets a new precedent for public-private partnerships in the mining sector.
