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| Chile Atacama Desert |
Chile Strengthens State Control Over Lithium Production
Codelco and SQM completed a landmark lithium joint venture in Chile’s Atacama Desert. This NovaAndino Litio partnership ensures state oversight of the world’s richest lithium reserves. As a result, Chile strengthens its position in global lithium supply while supporting sustainable energy initiatives.
The JV merges Codelco affiliate Minera Tarar SpA with SQM Salar SpA. Meanwhile, SQM transferred all mining concessions in Salar de Maricunga to Codelco. Therefore, NovaAndino Litio will manage exploration, production, and sales of lithium in Salar de Atacama until 2060.
Strategic Implications for the Global Lithium Market
This collaboration aligns with President Gabriel Boric’s agenda to increase state participation in strategic lithium assets. Furthermore, the agreement secures continuity under Corfo contracts and sets new terms effective from 2031. China approved the deal conditionally, ensuring fair and non-discriminatory supply to Chinese customers.
The partnership is expected to positively impact Codelco’s 2025 financials. In contrast, it also signals tighter government oversight, influencing global lithium pricing and investment strategies. Consequently, investors and industry stakeholders should monitor output forecasts and regulatory developments closely.
ScrapInsight Commentary
NovaAndino Litio positions Chile as a dominant lithium supplier, boosting state control and strategic leverage. Lithium prices may stabilize amid higher transparency, while global EV supply chains will increasingly rely on Chilean output. Regulatory alignment with China ensures market continuity, supporting sustainable extraction practices.
