On Friday, a landmark agreement was signed between SQM and Chile's state-owned copper giant Codelco to nearly triple the current lithium production, crucial for the world's transition to cleaner energy sources.
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| Major-Partnership-for-Lithium-Mines |
Codelco, the world's largest copper producer, and SQM are
pioneers in lithium, sometimes referred to as "white gold". According to a statement released by the
companies regarding the agreement, a public-private
partnership will be established to take over the responsibility for refining
lithium production at Salar de Atacama between 2025 and 2060.
Salar de Atacama, located in the desert of the same name, is
part of Latin America's "lithium triangle", along with Argentina and
Bolivia, and contains most of the mineral resources in a salt flat.
There has been a sharp increase in demand for lithium in
recent years to mitigate global warming.
Especially electric car batteries utilize this substance.
According to the announcement, the companies will
collaborate to extract an additional 300,000 tons of lithium between 2025 and
2030, and aim for an annual production of 280,000-300,000 tons between 2031 and
2060.
SQM produced 169,000 tons in 2023.
When Chile's left-leaning President Gabriel Boric took office,
his aim was to establish a national lithium operation similar to Codelco, a
state enterprise established by nationalizing mining companies in the 1970s.
According to the press release, Codelco will have a 51%
stake in the new partnership.
Additionally, it has been stated that the Chilean state will
earn approximately 70% of the operating profit from increased production
between 2025 and 2030, and 85% from 2031 onwards.
Until 2016, Chile held a 37% market share and was the world's largest lithium producer. However, by 2022, it slipped to second place after Australia, producing 243,100 tons, or approximately 34% of the world's total.