Chile's Supreme Court rejected Tianqi's no-innovation order on Tuesday, aiming to halt the Codelco-SQM agreement for lithium extraction in the Salar de Atacama until 2060. The Third Chamber's ruling follows the Santiago Court of Appeals' prior denial. The deal still awaits final approval from the Comptroller General of the Republic.
The Third Chamber of the Supreme Court, comprising ministers Jean Pierre Matus and Gonzalo Enrique Ruz, along with substitutes Dobra Francisca Lusic, Roberto Ignacio Contreras, and Juan Cristóbal Mera, dismissed Tianqi's request filed on December 2. The Chinese firm, holding 22% of SQM and appointing three of its eight directors, sought to suspend the effects of the Financial Market Commission (CMF) resolution from July 2024, which endorsed SQM's board decision to approve the agreement without shareholder vote.
The ruling states: “No encontrándose en ejecución el acto cuya suspensión se pretende por esta solicitud, no ha lugar a lo solicitado”. This request reached the Supreme Court after the Santiago Court of Appeals rejected it on November 11. The agreement, signed on May 31, 2024, aims for a public-private partnership for mining, productive, commercial, community, and environmental development in the Salar de Atacama.
SQM countered that “the sole purpose of Tianqi, with its claim and continuous suspension requests, is to obstruct the execution of an association with Codelco that is vital for the continuity of lithium production in the Salar de Atacama”. It added that Tianqi, a main competitor in the global lithium market, prioritizes its own interests over those of the company.
The Supreme Court's final ruling on Tianqi's appeal against the July 2024 CMF decision remains pending. Meanwhile, the agreement awaits acknowledgment from the Comptroller General of the Republic (CGR). Corfo withdrew and resubmitted key contracts for formal adjustments, with a deadline of December 31, 2025.
