Codelco and SQM have received approval from the State Administration for Market Regulation (SAMR) of the People’s Republic of China for their partnership agreement. This decision marks a significant step in advancing Chile’s role in global lithium production.
Máximo Pacheco, Chairman of the Board of Codelco, commented on the development: “The work begun more than a year ago has borne fruit thanks to the commitment and rigor of hundreds of professionals and managers from both companies. For Codelco and SQM, and for all of Chile, it is a source of pride to have received this support, which will allow us to contribute decisively to the development of the critical minerals the world needs to advance in the energy transition.” He added: “This demonstrates that Chile can achieve any goal if it acts collaboratively, rigorously, and with a sense of national responsibility.”
The agreement between Codelco and SQM was first announced in December 2023 and formalized in May 2024. Since then, both companies have worked to meet various requirements necessary for finalizing their partnership.
One important milestone was obtaining approval from Chile’s National Economic Prosecutor’s Office (FNE) on April 24, 2025. The partnership has also passed reviews by competition authorities in Brazil, Japan, South Korea, Saudi Arabia, and the European Union. These bodies confirmed that the agreement aligns with international competition standards.
Additionally, Chile’s Nuclear Energy Commission (CChEN) approved a lithium extraction quota from the Atacama Salt Flat for 2031-2060. This approval ensures ongoing operations under defined regulatory conditions.
Both companies have engaged with local communities near the salt flat. Corfo conducted an Indigenous consultation process as required by ILO Convention 169 to ensure community participation. Corfo also finalized a lease agreement for mining concessions at Atacama Salt Flat with Codelco’s subsidiary Minera Tarar SpA covering operations through 2060.
With SAMR’s authorization now secured, all needed international approvals are complete. Locally, only review by Chile’s Comptroller General remains before full implementation.
The partnership aims to implement Chile’s National Lithium Strategy and strengthen its position as a leading producer of minerals essential for electromobility and clean energy technologies. Through this alliance, state control over lithium resources is emphasized.
For Codelco, this move expands its activities beyond copper into lithium production—an area seen as offering high growth potential. For SQM, partnering with Codelco provides operational continuity at Atacama Salt Flat while introducing stricter standards related to efficiency and sustainability under a public-private model.
Internationally, this collaboration is expected to provide reliable supply by leveraging Codelco’s institutional presence as Chile’s main state-owned enterprise alongside SQM’s industry expertise.
