China Greenlights Major Lithium Joint Venture Between Codelco and SQM

China's market regulator approved a joint venture between Codelco and SQM for lithium production, with conditions to maintain supply to Chinese clients. This move aligns with Chile's strategy to expand state control over lithium. The venture awaits completion amidst legal challenges and international scrutiny.

China's market regulator granted conditional approval for a lithium-centric joint venture between Chile's state-run copper giant, Codelco, and local lithium producer, SQM, on Monday.

The decision came after soliciting input from various government bodies, industry associations, competitors, and consumers, according to a statement from China's State Administration for Market Regulation. Additionally, the regulator emphasized that both parties must ensure the continuous supply of lithium carbonate to Chinese customers, free of arbitrary restrictions or delays.

This joint venture aims to enhance lithium production in the Atacama salt flats as part of President Gabriel Boric's plan to bolster state control over the lithium sector. Already approved by regulators in the EU, Brazil, Japan, South Korea, and Saudi Arabia, the partnership still faces opposition from legislators and legal challenges from Tianqi, a significant SQM shareholder.

(With inputs from agencies.)