The SQM-Codelco partnership exceeded lithium production forecasts in 2025, signaling strong momentum in the global battery metal market. The Nova Andino Litio SpA venture produced 233,000 metric tons of lithium carbonate equivalent, surpassing the projected 230,000 tons. Output growth reflects rising electric vehicle and energy storage demand.
SQM-Codelco Lithium Output Edges Out Forecasts Amid Rising Demand
NovAndino’s Atacama salt flat operation continues expanding to meet battery metal demand. SQM manages day-to-day operations while Codelco holds a controlling interest. The company targets 30% production growth, reaching 300,000 tons by decade-end. Expansion aims to capture double-digit global lithium consumption growth, putting pressure on higher-cost producers.
The operation employs low-impact evaporation techniques, reducing water, chemical, and energy use compared with Australian hard-rock mining. NovAndino plans to propose direct extraction methods to regulators, potentially boosting output further. Meanwhile, lithium supply remains pivotal for global EV battery production and large-scale storage projects.
Strategic Partnerships and Copper Oversight
Codelco’s Maricunga lithium venture with Rio Tinto Group awaits antitrust approvals in Chile and China. Codelco also reported 1.33 million tons of copper production in 2025, with record capital expenditure of $5.28 billion. Oversight of the El Teniente underground mine, following a July collapse, will integrate into the executive committee, supported by an independent consultancy.
SuperMetalPrice Commentary:
SQM-Codelco’s output growth confirms lithium’s bullish trajectory in the emerging battery metals market. Low-cost production at Atacama strengthens Western supply security. Proposed extraction innovations could expand output further, challenging higher-cost competitors. Investors and downstream buyers should monitor NovAndino’s production ramp closely as global EV and energy storage demand accelerates.
Leave a Reply
You must be logged in to post a comment.