Chile’s Lithium Sector Poised for Historic State-Led Transformation

A pivotal moment is approaching for Chile’s lithium reserves as a landmark agreement between specialty chemicals producer SQM and state-owned mining giant Codelco nears finalization. This partnership, if approved, would secure SQM’s operational future in the lithium-rich Atacama Desert through 2060, marking a fundamental shift in the South American nation’s resource management strategy.

While Chilean authorities have moved forward, the deal’s ultimate activation depends on clearance from Chinese regulators. This requirement stems from significant SQM stakes held by China’s Tsingshan group. Market observers widely anticipate approval before year-end, given the project’s strategic importance. The planned joint venture, named “Salar Futuro,” aims for a massive production capacity of 330,000 tonnes of lithium carbonate equivalent annually, positioning... Read more...