Codelco and SQM Launch Lithium Venture in Chile’s Atacama Desert

Codelco and SQM Form NovaAndino Litio for Lithium Production

Codelco and SQM have completed a landmark deal to boost lithium production in Chile’s Atacama Desert. The joint venture, NovaAndino Litio SpA, merges Codelco affiliate Minera Tarar SpA with SQM Salar SpA. This partnership gives the Chilean government control over one of the world’s richest lithium reserves, positioning the country as a key player in the global battery metals market.

NovaAndino Litio will manage all lithium exploration, production, and sales in the Salar de Atacama until 2060. Existing agreements with the Chilean development agency Corfo will continue, while new contracts will take effect from 2031 onward. The collaboration ensures continuity for supply chains and strengthens Codelco’s 2025 financial outlook.

Strategic Impact on Chile’s Lithium and Battery Metals Sector

The partnership aligns with President Gabriel Boric’s agenda to increase state control of key lithium assets while boosting output for the global energy transition. The deal received final approval from China, contingent on maintaining fair and continued supply to Chinese customers. As a result, NovaAndino Litio will play a critical role in securing lithium supply for batteries in electric vehicles and renewable energy storage.

SuperMetalPrice Commentary:

The NovaAndino Litio joint venture marks a strategic milestone for Chile’s lithium sector. State-backed control ensures stable production while meeting global demand. Investors should monitor potential supply expansions and pricing impacts as Chile strengthens its role in the battery metals market.