Chilean state copper producer Codelco and lithium company Sociedad Química y Minera de Chile SA (SQM) announced on Friday their signing of a partnership agreement that will give Codelco a majority stake in SQM’s Salar de Atacama.
The partnership will operate and develop lithium products during the timeframe of 2025 to 2060.
The collaboration will be composed of SQM via SQM Sala and Codelco via its subsidiary Minera Tarar and is planned to become effective at the beginning of 2025, subject to any regulatory, community, or possible legal challenges.
The partnership, in which Codelco will own 50%+1 shares, aims to up annual production capacity of lithium carbonate equivalent (LCE) from 200,00 metric tons to 300,000 in the period 2025–2030, during which time SQM will have operational control. Following this, an annual production of 280,000–300,000 tons for 2031–2060 is expected, during which Codelco will oversee the management.
The companies say that the increase in lithium production will be achieved through processing efficiency, adoption of new technology and optimising of operations – and not through increased brine extraction or use of continental waters.