After a competitive bidding process initiated in 2024, Chile’s state-owned copper giant Codelco has signed a joint venture agreement with global mining leader Rio Tinto to develop a lithium project in the Salar de Maricunga.
The deal, unanimously approved by Codelco’s board, outlines the formation of a new company where Codelco will retain a 50.01% stake and Rio Tinto will hold 49.99%. The partnership aligns with Chile’s National Lithium Strategy, which mandates state control over strategic lithium assets while fostering private-sector collaboration.
“This highly competitive process reflects lithium’s strategic value as a critical mineral, Codelco’s prestige as a partner, and Chile’s attractiveness as an investment destination,” said Máximo Pacheco, Chairman of the Board of Codelco. The process was supported by Rothschild & Co. and involved four binding offers.
Legal and Strategic Support
Codelco’s legal team was led by VP Macarena Vargas and advised by Carey y Cía (Chile) and Sullivan & Cromwell LLP (USA). Rio Tinto was represented by Cariola Díez Pérez-Cotapos and Australian firm Ashturs.
Rio Tinto was selected based on the value of its offer, strong financial standing, and extensive expertise in brine-based lithium extraction and related technologies.
Global Lithium Vision
Rio Tinto CEO Jakob Stausholm commented: “We are honored to partner with Codelco on a world-class project using direct lithium extraction (DLE) technology in the Salar de Maricunga. This resource will expand our critical minerals portfolio, supporting the global energy transition.”
The project marks a deepening of ties between the companies. Rio Tinto is already active in Chile as a shareholder in Minera Escondida and a partner in the Nuevo Cobre exploration project.
Investment Structure and Governance
The agreement includes an investment commitment of up to $900 million from Rio Tinto: $350 million upon closing, $500 million upon final investment decision (FID), and $50 million if production begins before December 31, 2030.
The new company will be governed by a five-member board: three appointed by Codelco (including the chair), and two by Rio Tinto. This structure ensures state leadership with global expertise.
Salar de Maricunga: A World-Class Asset
Maricunga ranks as the second-highest lithium concentration salt flat globally, following the Salar de Atacama. The joint venture will build on years of exploration, engineering, and environmental permitting already undertaken in the area.
Between 2022 and 2023, Codelco conducted hydrogeological modeling and resource estimation. In 2024, it solidified its foothold by acquiring Lithium Power International, owner of Minera Salar Blanco S.A.
“This project positions us to lead Chile’s next phase of lithium development. It will combine cutting-edge technology, strict environmental standards, and sustained community engagement to protect the salar’s ecosystem,” Pacheco emphasized.
This strategic alliance reinforces Codelco’s diversification beyond copper and strengthens Chile’s role in the global supply of critical minerals essential to the green transition.
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