A landmark public private alliance shaping Chile’s lithium future

Codelco and SQM made a press release informing about an incorporation of Nova Andino Litio SpA, following the merger of their respective subsidiaries, Minera Tarar SpA and SQM Salar SpA.

Public and private alliance

This transaction gives full legal form to one of the most significant public–private partnerships in Chile’s corporate history. The new joint venture will be responsible for the exploration, extraction, production, and commercialization of lithium in the Salar de Atacama through 2060, combining state leadership, world-class operational expertise, and a modern, professional governance model.

Nova Andino Litio consolidates all the assets, international offices, permits, technical know-how, and specialized teams required to operate a competitive and scalable lithium business. These capabilities were brought together following a comprehensive organizational reconfiguration carried out by SQM between 2024 and 2025. The agreement also ensures operational and contractual continuity in the Salar de Atacama, under existing agreements with Corfo and under the new contractual framework applicable from 2031 onward.

Strategic step

“Today, Codelco takes a strategic step to actively participate in lithium production, a key resource for the global energy and digital transition. This partnership with SQM fills us with pride and reflects a new form of public-private collaboration: transparent, professional, and long-term” said Máximo Pacheco, Chairman of Codelco’s Board.

The merger stems from the Association Agreement signed on May 31, 2024, which underwent review by more than 20 regulatory bodies and institutions in Chile and abroad, and included an extensive Indigenous consultation process led by Corfo. Throughout the process, full documentation remained publicly accessible.

Landmark for Chile lithium

From SQM’s perspective, CEO Ricardo Ramos emphasized that the joint venture enables a long-term vision for the Salar de Atacama, reinforcing operational excellence, sustainability standards, and shared value creation, benefiting both Chile and global lithium markets.

The new company’s Board of Directors will comprise three representatives from Codelco and three from SQM, with its first official meeting scheduled for December 29. As part of the partnership commitments, SQM has also transferred all its mining concessions in the Salar de Maricunga to Codelco, significantly strengthening the Chilean state’s strategic position for future lithium projects.

Both companies confirmed that the completion of the merger and the partnership will have a positive and material impact on Codelco’s financial results, to be reflected in its financial statements as of December 31, 2025.

Lithium, energy transition, and responsible mining are no longer future concepts, they are being built today through collaboration, governance, and long-term vision.