Chile's Comptroller General approved the Codelco-SQM agreement for lithium extraction in the Salar de Atacama from 2031 to 2060, subject to conditions to be met by December 31, 2025. Finance Minister Nicolás Grau called it a historic deal that will double lithium production this decade and make Codelco a global leader. Officials highlight benefits for Chile's energy transition and regional sustainability.
Chile's Comptroller General (CGR) issued its approval of the Codelco-SQM contract, allowing the lithium extraction agreement in the Salar de Atacama to proceed to its final phase from 2031 to 2060. The resolution includes specific instructions, such as Codelco maintaining over 50% stake in the joint venture, with any changes needing Corfo approval and CGR review. The creation of Codelco's subsidiary Minera Tarar SpA is subject to prior legality control, with all requirements to be met before closing the deal.
Finance Minister Nicolás Grau praised the development: “It is a historic agreement that will allow us to develop lithium production more strongly in our country. Together with the National Lithium Strategy, it will enable us to double lithium production this decade.” Grau added that it will position Codelco as “one of the world leaders in lithium production.”
Economy and Energy Minister Álvaro García stressed that the deal ensures operational continuity, innovation, and sustainability, solidifying Chile's role in the global energy transition. “With this step, we are fulfilling a government commitment to ensure the state's active presence in the lithium industry through a public-private partnership where the state will have a strategic majority stake,” he stated.
Codelco board president Máximo Pacheco noted that this approval completes all national and international authorizations. Corfo executive vice president José Miguel Benavente highlighted that the partnership will generate stable state revenues until 2060 and regional benefits.
The deal's structure involves SQM Salar absorbing Minera Tarar, with a share swap giving Codelco majority control. It projects annual production of 280,000 to 300,000 tons of lithium carbonate equivalent (LCE), optimizing processes without increasing brine extraction or continental water use.
Challenges remain: the approval conditions the closing on resolving the SEC investigation against SQM, though Codelco may proceed if risks are deemed mitigated. Tianqi, an SQM shareholder, continues a lawsuit pending in the Supreme Court.
