Wedoany.com Report-Dec.29, Chile’s state-owned copper producer Codelco and lithium company SQM have completed a major agreement to form a joint venture focused on lithium extraction from the Salar de Atacama in the Atacama Desert. The deal, announced in a joint statement on Saturday, establishes NovaAndino Litio SpA through the merger of Codelco’s affiliate Minera Tarar SpA and SQM’s subsidiary SQM Salar SpA.

The transaction is expected to deliver a positive and significant impact on Codelco’s financial performance in 2025.

As part of the agreement, SQM has transferred all its mining concessions in the Salar de Maricunga to Codelco. In return, the newly formed NovaAndino Litio will hold exclusive rights to lithium exploration, production, and sales in the Salar de Atacama until 2060.

This arrangement ensures the continuation of existing contracts with the Chilean development agency Corfo. It also paves the way for new agreements that will take effect from 2031 onward, providing long-term stability for operations in one of the world’s most important lithium reserves.

The partnership supports efforts to increase lithium output while maintaining reliable supply chains for global markets. The companies emphasized that the joint venture will help meet growing demand for the metal, which is essential for batteries used in electric vehicles and energy storage systems.

The deal received final regulatory clearance in November when authorities in China granted approval. The approval came with conditions that the companies continue to fulfill their existing commercial commitments and maintain supplies to Chinese customers on a fair, reasonable, and non-discriminatory basis.

The successful completion of this transaction marks an important step in strengthening collaboration between state-owned and private entities in Chile’s lithium industry. By combining resources and expertise, Codelco and SQM aim to enhance production efficiency and ensure sustainable development of the Salar de Atacama resource.

The agreement reflects Chile’s strategic approach to managing its abundant lithium reserves amid rising global interest in clean energy technologies. It provides a framework for continued investment and operational continuity over the coming decades.

Industry observers note that the joint venture positions Chile to play a central role in the global lithium supply chain. The long-term concession period until 2060 offers predictability for planning and investment, benefiting both domestic development goals and international partners.

The formation of NovaAndino Litio SpA represents a balanced model that integrates state participation with private sector capabilities. This structure is designed to support increased output while preserving strong commercial relationships worldwide.