Chilean Lithium Giants Secure China's Approval for Strategic Partnership

China's antitrust regulator approved a joint venture between Chilean copper giant Codelco and SQM to produce lithium in Chile's Atacama salt flat. This approval was crucial for the deal, which aligns with Chile's goal to increase state control over lithium production. The deal is expected to conclude by year-end.

Chile's state copper firm Codelco and local lithium producer SQM have received approval from China's antitrust regulator for their joint venture focused on lithium production. This greenlight was pivotal for the initiative, announced two years ago, aiming to expand state control over the lucrative lithium industry in Chile's Atacama salt flat.

China stipulated conditions for the approval, including a commitment from Codelco and SQM to supply lithium to Chinese clients at competitive prices, without exceeding benchmark market prices. The Chinese regulator emphasized confidentiality regarding specific details and urged compliance with corporate governance standards.

The venture awaits a final nod from Chile's comptroller's office, expected by the year's end. The partnership has already received endorsements from regulatory bodies across the globe, facing resistance from some stakeholders, including China's Tianqi, a major investor in SQM. The venture aligns with Chile's strategic objectives to assert greater state control over its natural resources.

(With inputs from agencies.)