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Released November 13, 2025 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)
The deal between the companies had already been approved by Chile's regulator, as well as those of the European Union, Brazil, Japan, South Korea and Saudi Arabia.
Despite overcoming these regulatory hurdles, the deal remains controversial. It has been criticized by some Chilean presidential candidates ahead of the November 16 elections, who said they would review the joint venture contract if elected.
The current minister of economy, under the government of incumbent Gabriel Boric, told Reuters in August that his administration was trying to finalize the deal before a new government takes power.
"The work begun more than a year ago has borne fruit thanks to the commitment and rigor of hundreds of professionals and managers from both companies. For Codelco and SQM, and for all of Chile, it is a source of pride to have received this support, which will allow us to contribute decisively to the development of the critical minerals the world needs to advance the energy transition," said Máximo Pacheco, chairman of the board of Codelco.
In June, the companies received approval from the Chilean Nuclear Energy Commission (CCHEN) to produce 2.5 million tons of lithium metallic equivalent from the Atacama salt flat from 2031 until 2060, with the capacity to expand to just over 3 million tons.
Besides SQM, lithium miner Albemarle also operates on the Atacama salt flat; however, its contract runs through 2043.
As part of the national strategy, in May, Codelco selected Rio Tinto as its minority partner (49.9%) for the development of the Maricunga project. As part of the deal, the Australian miner would provide US$350 million for additional studies, US$500 million for construction costs, and another US$50 million if the joint ventures achieve lithium production before 2030. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more from the detailed project report and related plant profile.
Regarding lithium hydroxide, SQM expects to reach a processing capacity of 100,000 tons per year, up from 40,000 tons currently.
Key Takeaways
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Summary
Chile's SQM and Codelco received Chinese market approval to advance their partnership to exploit the Atacama salt flats for lithium. This is the last international requirement needed for the joint operations to continue.JV Gets Final International Approval
China's market regulator approved a joint venture between Codelco and SQM to develop the Atacama salt flats for lithium. This was the last international approval required to move forward with the agreement.The deal between the companies had already been approved by Chile's regulator, as well as those of the European Union, Brazil, Japan, South Korea and Saudi Arabia.
Despite overcoming these regulatory hurdles, the deal remains controversial. It has been criticized by some Chilean presidential candidates ahead of the November 16 elections, who said they would review the joint venture contract if elected.
The current minister of economy, under the government of incumbent Gabriel Boric, told Reuters in August that his administration was trying to finalize the deal before a new government takes power.
"The work begun more than a year ago has borne fruit thanks to the commitment and rigor of hundreds of professionals and managers from both companies. For Codelco and SQM, and for all of Chile, it is a source of pride to have received this support, which will allow us to contribute decisively to the development of the critical minerals the world needs to advance the energy transition," said Máximo Pacheco, chairman of the board of Codelco.
In June, the companies received approval from the Chilean Nuclear Energy Commission (CCHEN) to produce 2.5 million tons of lithium metallic equivalent from the Atacama salt flat from 2031 until 2060, with the capacity to expand to just over 3 million tons.
Codelco's Lithium Endeavor
The origin of the deal between SQM and Codelco, which was announced by Boric in 2023, placed Codelco as a key player. Despite not having any lithium assets prior to 2023, the government's plan gave Codelco access to strategic salt flats such as Atacama and Maricunga. Under this policy, companies operating in the area would have to partner with the state miner Codelco to extend their contracts beyond their current dates.Besides SQM, lithium miner Albemarle also operates on the Atacama salt flat; however, its contract runs through 2043.
As part of the national strategy, in May, Codelco selected Rio Tinto as its minority partner (49.9%) for the development of the Maricunga project. As part of the deal, the Australian miner would provide US$350 million for additional studies, US$500 million for construction costs, and another US$50 million if the joint ventures achieve lithium production before 2030. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more from the detailed project report and related plant profile.
SQM Chilean Operations
Last year, SQM produced 179,600 tons of lithium carbonate in Chile, higher than the 165,500 tons recorded in 2023. Currently, the company's plant capacity is 210,000 tons per year, though it plans to expand to 240,000 tons.Regarding lithium hydroxide, SQM expects to reach a processing capacity of 100,000 tons per year, up from 40,000 tons currently.
Key Takeaways
- Chinese market regulators approved the SQM-Codelco joint venture in Atacama.
- The companies can produce up to 3 million tons of lithium metallic equivalent from 2030 to 2060.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
