Chile launched its largest public-private enterprise for lithium exploitation

Codelco and SQM formalize the creation of NovaAndino Litio to operate in the Atacama Salt Flat until 2060

Chile.– Chilean state-owned Codelco and mining company SQM formalized this Saturday the creation of NovaAndino Lithium, a joint venture for the exploration, exploitation, production, and marketing of lithium in the Atacama Salt Flat, with operations projected until the year 2060. The announcement was made through a joint statement, in which both companies informed that the new company has a state majority and arises from the Association Agreement signed on May 31, 2024, which was reviewed and evaluated by more than twenty national and international organizations and institutions. According to Codelco, the constitution of NovaAndino Lithium represents "one of the most relevant public-private partnerships in the business history of Chile", by combining the leadership of the State with the operational and commercial experience of both mining companies in the international lithium market. The statement highlights that the agreement establishes modern and professional governance, an aspect that was also emphasized by executives from both companies in statements reported by Chilean media. The board of directors of the new company will be made up of three representatives from Codelco, Máximo Pacheco, Josefina Montenegro, and Alfredo Moreno, and three from SQM, Ricardo Ramos, Hernán Uribe, and Manuel Ovalle—, guaranteeing a balance in the administration. The first board meeting is scheduled for December 29th, marking the formal start of the company's administrative operations.

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The chairman of the board of directors of Codelco, Máximo Pacheco, stated that with this alliance "the state-owned company takes a strategic step to actively participate in the production of lithium, a key resource for the energy and digital transition on a global scale." For his part, the general manager of SQM, Ricardo Ramos, pointed out that the new partnership will allow to "project the development of the Atacama Salt Flat and advance with operational excellence, sustainability and shared value creation standards". NovaAndino Lithium will concentrate all assets, subsidiaries, international offices, permits, technical knowledge and human teams necessary for the development of the lithium business in the area. Operations in the Atacama Salt Flat will continue to be regulated by the current contracts with the Production Development Corporation (Corfo), which establish the conditions for lithium exploitation and ensure income for the Chilean State. According to the companies, the reorganization process carried out by SQM between 2024 and 2025 guaranteed operational and contractual continuity, including the agreements that will govern from 2031. Chile currently holds the second position worldwide in lithium production, only behind Australia, with Argentina as one of its main competitors. Until now, SQM and the American company Albemarle were the only companies authorized to exploit this strategic resource in the Salar de Atacama, which is state-owned.