Codelco and SQM form JV to develop Chile's Atacama Salt Flat

Xinhua News Agency, Santiago, December 27 (Reporter Zhu Yubo) – Chilean state-owned enterprise Codelco and lithium giant SQM announced on December 27 that they will merge their respective subsidiaries to form a new joint venture. This venture will conduct lithium exploration, mining, production, and commercialization activities in the Atacama Salt Flat in northern Chile, with the agreement lasting until 2060.

The two enterprises stated in an announcement that day that the establishment of this joint venture represents "one of the most significant collaborations in Chile's business history," marking the implementation of a cooperation agreement where the two companies will jointly develop Chile's lithium resources through a public-private partnership model.

In April 2023, the Chilean government released its National Lithium Resources Development Strategy, announcing that the state would participate in the entire lithium resource development process. In December of the same year, Codelco and SQM signed a memorandum of understanding to establish a joint venture.

In May 2024, the two companies formally signed the cooperation agreement. According to the agreement, the operation of the new joint venture will be divided into two phases: from 2025 to 2030, the joint venture will be led by SQM, and its existing lithium ore development rights will continue; from 2031 to 2060, Codelco will hold a majority stake and occupy the majority of seats on the board of directors. The agreement also stipulates that from 2025 to 2030, the Chilean government will receive 70% of the new joint venture's operating profits, a share that will increase to 85% starting in 2031.

Lithium, known as "white gold," has become a crucial resource for global energy and digital transformation. Chile is the world's second-largest lithium producer, and the Atacama Salt Flat holds the majority of Chile's lithium reserves.

Please note that this news is sourced from https://baijiahao.baidu.com/s?id=1852731037366489262&wfr=spider&for=pc and translated by SMM.