The state mining company Codelco and the private company SQM created the joint venture NovaAndino Lithium to exploit, produce and market the so-called “white gold” in the Salar de Atacama until 2060, both companies reported this Saturday.
The new company, with majority state participation, is the result of the Association Agreement signed on May 31, 2024 between both mining companies, which was reviewed by more than 20 organizations and institutions both in Chile and abroad.
According to Codelco in a statement, NovaAndino Litio is one of the “most relevant public-private partnerships in the business history of Chile, which combines state leadership, world-class operational experience and modern and professional governance.”.
“Codelco today 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,” said Máximo Pacheco, president of the board of directors of Codelco, in the statement.
Board of Directors will have three members from Codelco and three from SQM
The board of directors of the joint venture will be made up of three representatives from Codelco and three from SQM and its first session will be held on December 29.
“This joint venture allows us to project the development of the Salar de Atacama and continue advancing with standards of operational excellence, sustainability and creation of shared value, combining complementary capabilities for the benefit of Chile and global markets”said Ricardo Ramos, general manager of SQM.
Currently, Chile is the second largest producer of lithium in the world, behind Australia, and followed by Argentina.
The Chilean company SQM, controlled by the Chinese company Tianqi, and the American company Albemarle, are the only two companies that until now exploit lithium in Chile and do so in the state-owned Salar de Atacama.
Codelco was appointed by President Gabriel Boric to lead his ambitious strategy that seeks to turn the Chilean State into one of the largest players in the global lithium industry.
The objective is to achieve a total additional production for the period 2025-2030 of 300,000 tonnes of lithium carbonate equivalent (LCE) and annual production from 2031 of 280,000 to 300,000 tonnes of LCE.
