Codelco Secures Major Stake in SQM's Lithium Assets by Friday’s Deadline

May 31, 2024, 12:25 PM

Codelco is set to enter the lithium market after signing a deal with SQM, securing a majority stake in SQM’s Chilean assets. The partnership aims to produce an additional 300,000 tonnes of lithium carbonate equivalent between 2025 and 2030, and 280,000-300,000 tonnes from 2031 to 2060. The deal, however, faces challenges, including opposition from Tianqi and the need for indigenous consultation. Codelco's entry into the lithium market is expected to be bolstered by improvements in process efficiency, adoption of new technologies, and optimization of operations without increasing brine extraction or inland water use. Finance Minister Mario Marcel noted that the binding partnership is expected to be finalized by Friday’s deadline.