BUSINESS

Tianqi Lithium Cuts Stake in SQM After Losing Chile Nationalization Battle

Published: Feb. 6, 2026 1:01 a.m. GMT+8

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Tianqi became SQM’s second-largest shareholder through a $4.07 billion acquisition that burdened it with significant debt.

Chinese lithium giant Tianqi Lithium Corp. plans to sell a portion of its stake in Sociedad Quimica y Minera de Chile S.A. (SQM) to improve liquidity. This move follows its defeat in a legal battle against the Chilean government’s nationalization of the lucrative mining company.

In an announcement on Feb. 4, Shenzhen- and Hong Kong-listed Tianqi Lithium stated it intends to sell up to 3.566 million Class A shares of SQM, representing a 1.25% stake in the company. As of Feb. 3, the book value of these shares was $206 million, according to Tianqi.

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Tianqi Lithium plans to sell a 1.25% stake in SQM, worth $206 million, plus divest its stake in CALB and raise funds via bonds and share issuance, totaling $748 million.
The asset sales follow Tianqi’s failed legal challenge against Chile’s lithium nationalization, which sharply cut its expected returns from its $4.07 billion SQM investment.
Tianqi projects a 2025 profit of $53–$76 million after a 2024 loss of 7.9 billion yuan; Tianqi and SQM shares dropped after the announcements.

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Who’s Who

Tianqi Lithium Corp.: Tianqi Lithium Corp. plans to sell part of its stake in SQM to improve liquidity after losing a legal battle against Chile's nationalization of lithium resources. This involves selling up to 1.25% of SQM Class A shares for $206 million. The company also intends to sell its entire stake in CALB and issue new H-shares and convertible bonds to raise $748 million for strategic development.

Sociedad Quimica y Minera de Chile S.A.: Sociedad Quimica y Minera de Chile S.A. (SQM) is the world's second-largest lithium producer. Tianqi Lithium Corp. became its second-largest shareholder in 2018 but is now selling part of its stake to improve liquidity after losing a legal battle against the Chilean government's nationalization of lithium resources. Under a new agreement, Chile's state-owned Codelco will hold a controlling 51% stake in a new lithium joint venture with SQM.

CALB Co. Ltd.: CALB Co. Ltd. (branded as 中创新航 CALB) is China's third-largest battery maker. Tianqi Lithium Corp. plans to sell its entire holding of approximately 20.22 million shares in CALB, valued at around HK$515 million. This sale marks Tianqi's exit as a cornerstone investor in CALB's 2022 Hong Kong IPO.

Codelco: Codelco (智利国家铜业公司) is Chile's state-owned copper company. It has partnered with SQM in a new lithium joint venture, where Codelco will hold a 51% controlling stake. Starting from 2031, a significant portion (up to 85%) of the venture's profits will be directed to the Chilean state through various means, including Codelco's share.

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What Happened When

2018：: Tianqi became SQM’s second-largest shareholder through a $4.07 billion acquisition.

2022：: Tianqi acted as a cornerstone investor in CALB's Hong Kong IPO.

Late December 2025：: Tianqi began selling its entire holding of SQM Class B shares, about 0.29% of the company.

By late January 2026：: Tianqi ultimately failed in its legal challenge against the Chilean government’s nationalization of SQM.

As of February 3, 2026：: The book value of the 3.566 million Class A shares Tianqi intended to sell was $206 million. Tianqi's board authorized the sale of its entire holding of 62.556 million SQM Class A shares over the next year. Tianqi held around 20.22 million shares in CALB valued at approximately HK$515 million.

February 4, 2026：: Tianqi announced plans to sell up to 3.566 million Class A shares of SQM and disclosed other capital-raising measures, including selling entire holdings in CALB and launching new fundraising efforts. Tianqi’s A-shares fell 1.35% and SQM’s NYSE shares dropped nearly 7%.