Under the agreement, the private lithium producer SQM will transfer a controlling stake in Atacama's assets in exchange for extending the life of the deposit by 30 years. The deal had previously received regulatory approval in Asia and Europe. The deal is expected to be completed in the second half of 2025 before the elections in Chile.
The project is in line with the Chilean government's strategy aimed at developing cooperation between public and private companies in the strategically important lithium production sector and doubling lithium production, despite lower lithium prices amid oversupply. As part of the government's National Lithium Strategy program, published in April 2023, Codelco implements lithium projects through public-private associations.
However, the deal must receive approval from the Chinese regulator and Tianqi Lithium Corp. as a shareholder of SQM, who challenges the deal in court and demands that the issue be put to the shareholders' vote.
Atacama is a deposit in the Chilean desert, rich in metallic mineral resources (copper, gold, silver and iron, lithium, sodium nitrates and potassium salts). The southern part of the Atacama Salar deposit is the source of a quarter of the world's lithium reserves.
SQM is a Chilean chemical company producing lithium and industrial chemicals. The main production facilities are located in the Atacama Desert in the Tarapaca and Antofagasta regions. The headquarters is located in Santiago (Chile).
Codelco is a Chilean state—owned company and the world's largest copper producer. Codelco includes a lithium division that includes mining companies. The company holds strategic licenses for the development of lithium projects in the Maricunga and Pedernales regions of Chile. The headquarters is located in Santiago (Chile).
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