Santiago, Chile – April 2025
Chile’s National Economic Prosecutor’s Office (Fiscalía Nacional Económica, or FNE) has granted Phase 1 approval to the strategic joint venture between Codelco and SQM, paving the way for the development of one of the most significant lithium projects in Latin America.
The agreement seeks to establish a joint company for lithium extraction in the Salar de Atacama, Chile’s most prolific lithium resource. With this green light, the project is now significantly closer to implementation, following an exhaustive nine-month antitrust review.
Regulatory Review and Conditions
The FNE’s decision, announced on Thursday, authorizes the partnership under standard protocols concerning information handling and operational governance, consistent with global best practices in merger control. The notification was originally filed in July 2024, with a formal review beginning in September.
“This is a significant milestone,” said Máximo Pacheco, Chairman of Codelco’s Board. “The FNE has reviewed this operation with the rigor it deserves, and we are very satisfied with this outcome. It confirms that the partnership is moving forward in accordance with our plans and regulatory expectations.”
Global Antitrust Approvals Nearly Complete
This domestic approval follows similar decisions by competition authorities in Brazil, South Korea, Japan, Saudi Arabia, and the European Union—bringing the alliance one step away from full international regulatory clearance. The only remaining jurisdiction yet to rule is China.
The approvals align with preconditions defined in May 2024 when Codelco and SQM signed the final terms of their agreement. Once all authorizations are secured, the companies will proceed with the merger of their respective subsidiaries, Minera Tarar and SQM Salar.
Other Key Processes in Motion
Alongside regulatory progress, related processes are also advancing:
- Indigenous consultation is currently being led by CORFO, Chile’s state development agency.
- Approval from the Chilean Nuclear Energy Commission (CCHEN) is also underway.
These steps are critical to ensuring the agreement aligns with Chilean environmental and community standards.
Strategic Significance
The joint venture will operate in two phases:
- From 2025 to 2030, it will be managed by SQM.
- From 2031 to 2060, Codelco will assume control.
This project is positioned as a cornerstone of Chile’s long-term lithium strategy, contributing to the country’s leadership in the global clean energy transition.