Santiago – A new state-backed venture, NovaAndino Litio, has been established between Chilean mining giant Codelco and Sociedad Química y Minera de Chile (SQM) to dramatically expand lithium production in the Atacama Salar. The joint venture, formalized following a year-long review process, aims to capitalize on the surging global demand for the battery metal, essential for electric vehicles and energy storage [[3]]. This partnership represents a key component of President Gabriel Boric’s national strategy to increase Chilean state involvement in its vast lithium reserves, the world’s second-largest after Australia.
Chilean state-owned mining company Codelco and private firm SQM have established a joint venture, NovaAndino Litio, to exploit, produce, and market lithium in the Atacama Salar through 2060, the companies announced Saturday.
The new entity, with a majority state holding, follows a partnership agreement signed on May 31, 2024, which underwent review by over 20 organizations and institutions both in Chile and internationally.
According to Codelco, NovaAndino Litio represents “one of the most relevant public-private partnerships in Chile’s business history, combining state leadership, world-class operational experience, and modern, professional governance.”
“Codelco is taking a strategic step today to actively participate in the production of lithium, a key resource for the global energy and digital transition,” said Máximo Pacheco, Chairman of Codelco, in a statement. The move underscores Chile’s ambition to capitalize on the growing demand for battery metals.
Board will include three members from Codelco and three from SQM
The joint venture’s board of directors will consist of three representatives from Codelco and three from SQM, with its inaugural session scheduled for December 29.
“This joint venture allows us to project the development of the Atacama Salar and continue to advance with standards of operational excellence, sustainability, and shared value creation, combining complementary capabilities for the benefit of Chile and global markets,” stated Ricardo Ramos, General Manager of SQM.
Currently, Chile is the world’s second-largest producer of lithium, trailing Australia and followed by Argentina. The country’s lithium reserves are particularly concentrated in the Atacama Salar.
SQM, controlled by Chinese firm Tianqi, and U.S.-based Albemarle, are the only two companies currently exploiting lithium in Chile, both operating within the state-owned Atacama Salar.
President Gabriel Boric designated Codelco to spearhead his administration’s ambitious strategy to position the Chilean state as a major player in the global lithium industry.
The goal is to achieve a total additional production of 300,000 metric tons of lithium carbonate equivalent (LCE) for the period 2025-2030, and an annual production of 280,000 to 300,000 metric tons of LCE starting in 2031.
