Green Light for Codelco and SQM's Lithium Expansion Venture

Chile's competition regulator approved a joint venture between state-run Codelco and SQM to expand lithium production in the Atacama. The venture is progressing despite awaiting approvals from China's regulator and Chile's nuclear authority. It aligns with President Boric's plan for increased state control over the lithium industry.

Chile has taken a significant step forward in the lithium sector with the approval of a joint venture between Codelco, the state-run copper giant, and SQM. The competition regulator's green light paves the way for increased lithium production in the Atacama salt flats, a move crucial to the nation's economic strategy.

International regulatory decisions from the EU, Brazil, Japan, South Korea, and Saudi Arabia have all given the nod, while China's approval remains pending. Codelco's chairman Maximo Pacheco expressed satisfaction with the progress, noting that local Indigenous groups' negotiations are also advancing positively.

Despite facing opposition from legislators and lawsuits from China's Tianqi, a major investor in SQM, the venture is moving steadily toward completion. The final deal, crucial for President Gabriel Boric's broader lithium control plans, is expected in the second half of the year, awaiting only Chile's nuclear energy regulator's authorization.

(With inputs from agencies.)