Codelco-SQM Lithium Joint Venture Approved, Final Deal Expected Soon

Chile’s competition regulator has approved a landmark joint venture between state-owned Codelco and SQM to expand lithium production in the Atacama salt flats, granting preliminary clearance for Codelco to take a majority stake. This approval aligns with President Gabriel Boric’s initiative to increase state control over the lithium industry, a vital component for electric vehicle batteries. The deal has also received regulatory approvals from the European Union, Brazil, Japan, South Korea, and Saudi Arabia, but still awaits decisions from China and Chile’s nuclear energy regulator. Codelco’s chairman noted ongoing discussions with local Indigenous communities and acknowledged opposition from some lawmakers and legal challenges from Chinese stakeholder Tianqi. Despite these hurdles, the joint venture is expected to be finalized later this year and is considered crucial for Chile’s economic and energy strategy. The agreement aims to position Chile and its partners as leaders in the global lithium market.