Codelco and SQM Progress Towards 2025 Lithium Partnership, Regulatory Review Underway
Codelco and SQM have taken a step forward in their collaboration to produce lithium in the Salar de Atacama. The National Economic Prosecutor's Office (FNE) in Chile has begun the process of reviewing the antitrust aspects of the Association Agreement between the two companies, which was signed on May 31, 2024. This investigation is a key part of the legal requirements known as Conditions Precedent, necessary for the approval of the partnership.
The Conditions Precedent also include various technical and environmental approvals, as well as consultations with Indigenous communities. Regulatory bodies such as the Chilean Nuclear Energy Commission, the Comptroller General of the Republic, and other international competition agencies are involved in reviewing the agreement. The FNE's study process began on July 30, 2024, and the agency has 30 working days to complete its review.
The agreement is progressing as planned, with all necessary approvals and procedures moving forward. Completion of the partnership is expected in the first part of 2025. The alliance between Codelco and SQM positions Chile to solidify its role as a global leader in lithium production, capitalizing on the increasing demand for the metal, which is critical for the electric vehicle and renewable energy sectors.
In addition to boosting Chile's lithium output, the partnership will benefit the country’s economy, particularly the Antofagasta region and local communities in the Salar de Atacama. The collaboration also focuses on environmental sustainability, incorporating new investments in technology and innovation to balance operational efficiency with the preservation of the Salar's ecosystem.
