CODELCO and SQM agree partnership for Chilean lithium operations and subsequent marketing of lithium production.

Major Chilean state-owned copper producer CODELCO signed a partnership agreement with SQM detailing the ownership and future terms for SQM's current lithium operations in Chile.  The agreement includes the transfer of ownership for the Salar de Maricunga project, transfer of industrial property rights and the future operation of the Salar de Atacama lithium brine asset in Chile.  The initial partnership agreement signed in April 2024 did not include SQM’s Salar del Carmen processing facility, which processes lithium brine concentrate from the Salar de Atacama.  The transfer of the Salar del Carmen facility could form part of a future agreement between the two parties, though SQM is not obliged to sell the asset at ‘book value’ to the new JV, as it was for the Salar de Atacama assets.     

Under the terms of the new (May 2024) contract, CODELCO will be assigned a lithium production licence extending between 2025 and 2060, replacing the previous held contract between SQM and the Chilean government which was set to expire in 2030.  The updated production quota allows for increased production volumes compared to the old licence in the period to 2030.  SQM will continue general management of the Salar de Atacama operation until 2031, after which CODELCO will be granted the lease of the operation.