In a move set to redefine the global lithium supply chain, Chile’s state-owned copper company Codelco and leading private lithium miner SQM have launched a strategic joint venture to boost lithium production in the Salar de Atacama.
Why the Codelco SQM Lithium Joint Venture Matters
This partnership is part of Chile’s National Lithium Strategy, aimed at increasing public control and boosting state revenue from one of the world’s most valuable resources. It secures a 50% +1 share for Codelco, guaranteeing government oversight from 2025 to 2060.
Key Lithium Production Goals Through 2060
- Short term (2025–2030): Add 300,000 metric tons of lithium carbonate equivalent (LCE).
- Long term (2031–2060): Maintain annual production of 280,000–300,000 tons of LCE with advanced technology.
Learn more about lithium royalties in Chile and the expected revenue streams for the government, which could exceed 85% of the operating margin after 2031.
Regulatory Milestones and Global Compliance
The deal was approved by Chile’s National Economic Prosecutor (FNE) in April 2025. Additional approvals came from the EU, Brazil, Japan, and Saudi Arabia. Chinese and Chilean nuclear regulators are still reviewing.
Stakeholder Concerns and Indigenous Inclusion
The venture includes a consultation framework with the Lickanantay people of Atacama. The plan prioritizes sustainable practices and water stewardship while respecting ancestral lands. Read more on indigenous rights in lithium operations.
Environmental Commitment: Salar Futuro Plan
The joint venture will implement Direct Lithium Extraction (DLE) technologies and closed-loop water systems to reduce environmental impact. A University of Chile study warns that excessive brine extraction could cause subsidence.
Related reading: What is Direct Lithium Extraction?
Global Impact and Strategic Advantage
This public-private alliance makes Chile a model for nations balancing state control, sustainability, and global competitiveness in the battery metals supply chain.
Source: Codelco-SQM Official Website