Chile's state-owned mining corporation Codelco and private chemicals producer SQM have formalized the definitive operational and governance agreements for their historic public-private joint venture in the Salar de Atacama, executing President Gabriel Boric's National Lithium Strategy.
Under the landmark pact, the Chilean state will assume a majority controlling stake of 50% plus one share beginning in 2025. In exchange, the joint operating entity secures an extension of lithium extraction contracts in the world's richest lithium brine deposit through 2060, expanding cumulative production by an additional 300,000 metric tons of lithium carbonate equivalent.
State Control and Extended Operating Horizon to 2060
The agreement is projected to generate billions of dollars in incremental fiscal revenue for the Chilean treasury between 2025 and 2030 alone, via royalties, corporate taxes, and direct state dividend distributions. Crucially, the structure ensures that the Chilean state receives approximately 70% to 85% of total operating margins.
Environmental sustainability lies at the core of the newly ratified governance model. The joint venture contract legally mandates the phase-out of traditional solar evaporation ponds and the swift deployment of Direct Lithium Extraction (DLE) technologies, aiming to reinject spent brine into subsurface aquifers and slash freshwater consumption by over 50%.
“This partnership demonstrates that the state and private enterprise can join forces to protect our environment, lead the global energy transition, and deliver unprecedented wealth to all Chileans.”
Technological Transition to Direct Lithium Extraction
The pact also establishes dedicated consultation protocols and permanent economic royalty distributions for indigenous Atacameño communities surrounding the fragile desert salt flat. Community representatives will sit on joint environmental oversight committees monitoring water tables, brine reinjection wells, and local biodiversity.
Global automotive and battery manufacturers, including Tesla, BYD, and LG Energy Solution, closely scrutinized the deal's finalization, viewing the Atacama agreement as an indispensable anchor for ethical and secure raw material supply chains powering the worldwide electric vehicle revolution.
Comments (0)
Log in to join the discussion.