China Grants Conditional Approval for Codelco-SQM Lithium Joint Venture
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China’s market regulator has granted conditional approval for a lithium joint venture (JV) between Chile’s state-run copper giant Codelco and local lithium maker SQM, clearing the final antitrust hurdle for a partnership that is key to the South American country’s resource nationalization strategy.
In a statement published late Monday, the State Administration for Market Regulation (SAMR) announced it had cleared the tie-up with restrictive conditions. The deal, which creates the JV to mine, produce and sell minerals from Chile’s Atacama Salt Flat, had already received approvals from antitrust bodies in Brazil, South Korea, Japan, Saudi Arabia and the EU.
The agreement, signed in May 2024, will see Codelco hold a 51% stake in the JV, with SQM holding the remaining 49%. The venture is a cornerstone of Chilean President Gabriel Boric’s plan to bring the country’s lithium industry under state control.
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- China approved the Codelco-SQM lithium joint venture, with conditions to ensure fair supply to Chinese buyers; Codelco holds 51%, SQM 49%.
- SQM's Atacama Salt Flat mining rights extend to 2060; Chilean government will receive 70% of JV profits from 2025–2030, rising to 85% after 2031.
- SQM and its shareholder Tianqi are expected to face reduced profitability and dividends after 2030, when Codelco takes operating control.
- Codelco
- Codelco, Chile's state-run copper giant, has received conditional approval from China's market regulator for a lithium joint venture with SQM. This venture, where Codelco will hold a 51% stake, is central to Chile's resource nationalization strategy. It allows Codelco to extend mining rights for the Atacama Salt Flat to 2060, after SQM's current rights expire in 2030, and Codelco will take over management from that point.
- SQM
- SQM, a Chilean lithium producer, has formed a joint venture with Codelco, Chile's state-run copper giant. This partnership is crucial for Chile's resource nationalization strategy, allowing SQM to extend its Atacama Salt Flat mining rights until 2060. Although SQM will initially manage the JV, Codelco will assume control in 2031, impacting SQM's future profitability and its second-largest shareholder, Tianqi Lithium Corp.
- Tianqi Lithium Corp
- Tianqi Lithium Corp, a Chinese company, is the second-largest shareholder in SQM, holding a 22.16% stake. The new joint venture between Codelco and SQM is expected to impact Tianqi's investment income and dividends from SQM due to projected changes in SQM's profitability after 2030, when SQM loses control of the Atacama Salt Flat.
- May 2024：
- The agreement to create a lithium joint venture between Codelco and SQM was signed.
- Before November 10, 2025：
- The deal received antitrust approvals from Brazil, South Korea, Japan, Saudi Arabia, and the EU.
- November 6, 2025：
- SAMR stated the merger could affect competition in China's imported lithium carbonate market; Codelco and SQM submitted a commitment to address these concerns.
- Late November 10, 2025：
- China’s State Administration for Market Regulation (SAMR) announced conditional approval for the Codelco-SQM lithium joint venture.
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