Chile Seals Control Over Key Lithium Asset in Landmark Joint Venture
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A truck carries salt used in lithium processing at Albemarle’s lithium facility in the Atacama Desert, near San Pedro de Atacama, Chile, on April 17, 2023. Photo: VCG
Chile has finalized a landmark deal that gives its government majority control over one of the world’s most important lithium deposits, establishing a new joint venture with broad implications for the global battery supply chain and Chinese investment in critical minerals.
The partnership between state-owned copper giant Chilean National Copper Corp. (Codelco) and Sociedad Química y Minera de Chile (SQM), the world’s second-largest lithium producer, culminates a push by former President Gabriel Boric’s administration to nationalize the country’s vast lithium resources.
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- Chile secured majority state control (51%) over the Atacama salt flat lithium deposit through a joint venture between Codelco and SQM, finalized in May 2024.
- The Chilean state will receive 70% of operating profit from 2025-2030, rising to up to 85% from 2031, impacting major investor Tianqi Lithium.
- The deal reshapes global lithium supply, reflects resource nationalism, and gained approval from regulators including China, the EU, and others.
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Who’s Who
- Chilean National Copper Corp.
- Chilean National Copper Corp. (Codelco) is Chile's state-owned copper giant. It has entered into a landmark joint venture, Nova Andino Litio SpA, with SQM, the world's second-largest lithium producer. Codelco holds a 51% stake in this new venture, which aims to develop the Atacama salt flat, a vital lithium deposit. This deal marks Codelco's official entry into the lithium business, transforming it into a producer of both copper and lithium.
- Sociedad Química y Minera de Chile
- Sociedad Química y Minera de Chile (SQM) is the world's second-largest lithium producer. They have formed a new joint venture, Nova Andino Litio SpA, with Chile's state-owned copper giant Codelco. SQM holds a 49% stake in this venture, which will develop the Atacama salt flat. The deal will significantly diminish returns for major investor Tianqi Lithium, which holds a 22.2% stake in SQM.
- Tianqi Lithium Corp.
- Tianqi Lithium Corp. is a Chinese behemoth and a major foreign investor in SQM, holding a 22.2% stake, making it the second-largest shareholder. The deal between Codelco and SQM will significantly diminish Tianqi Lithium's returns. The company warned that SQM losing control of its Atacama lithium business from 2031 could alter future earnings and affect its investment income and dividends.
- Nova Andino Litio SpA
- Nova Andino Litio SpA is a new joint venture formed by Chile's state-owned copper giant Codelco (51% stake) and SQM (49% stake). It held its inaugural board meeting on December 29, local time, and was formed by merging SQM Salar (SQM's Atacama subsidiary) with Codelco’s Minera Tarar. The company aims to develop the Atacama salt flat, with Codelco Chairman Máximo Pacheco chairing the board and SQM CEO Ricardo Ramos serving as vice chairman.
- SQM Salar
- SQM Salar is the Atacama subsidiary of SQM, the world's second-largest lithium producer. It has merged with Codelco's Minera Tarar to form Nova Andino Litio SpA. This new joint venture gives the Chilean state majority control over the Atacama salt flat's lithium deposits, with Codelco holding 51% and SQM 49%.
- Minera Tarar
- Minera Tarar is a subsidiary of Codelco, Chile's state-owned copper giant. It plays a role in the new joint venture, Nova Andino Litio SpA. Under the terms of the agreement, SQM Salar, SQM’s Atacama subsidiary, will merge with Codelco's Minera Tarar. Codelco will hold a 51% stake in the joint venture, with SQM holding the remaining 49%.
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What Happened When
- December 2018：
- Tianqi Lithium acquired a 22.2% stake in SQM for $4.1 billion.
- May 2024：
- The agreement to merge SQM Salar with Codelco’s Minera Tarar and form a joint venture was signed.
- End of 2024：
- Tianqi Lithium conducted an impairment test on its SQM investment and concluded no additional provisions were necessary.
- November 2025：
- China’s market regulator gave conditional approval to the joint venture, the last required antitrust clearance.
- December 29, 2025：
- Nova Andino Litio SpA, the new joint venture, held its inaugural board meeting and officially launched its mandate.
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