SQM Stands by Its Lithium Partnership with Codelco Despite Criticism

SQM defends its joint venture with Codelco, emphasizing benefits for all stakeholders.

As one of the world’s largest lithium producers, SQM’s general manager, Ricardo Ramos, addressed the Chilean Senate, highlighting that the partnership aims to ensure economic and operational continuity for Atacama lithium operations beyond 2030. The joint venture is designed to prevent disruptions that could arise if a new private entity took over after SQM’s current contract expires.

Despite criticism over the lack of a public tender process, SQM and Codelco assert that their agreement, set to finalize in 2025, is the best approach. Codelco will gain rights to 33,500 metric tonnes of lithium carbonate equivalent annually and will take control of operations by 2031, while SQM retains a minority stake.

SQM is also seeking approval to expand production capacity by an additional 300,000 tonnes of lithium carbonate equivalent by 2030, but the deal faces legal challenges from Tianqi Lithium regarding the approval process. This joint venture aligns with Chile’s broader strategy to boost lithium production and enhance state involvement in the industry.