Chile’s state-owned mining company Codelco and lithium producer SQM have finalized an agreement to collaborate on increasing lithium extraction in the Atacama Desert. The deal is part of broader efforts to enhance lithium production, a key component in the global transition to clean energy and electric vehicles.
Under the terms of the agreement, Codelco and SQM will pool resources and expertise to optimize operations and expand capacity within Chile’s vast lithium reserves. The Atacama Desert is known to host some of the world’s largest lithium deposits, making it a strategic focal point for international supply chains.
As part of the deal, the Chilean government will assume control over a significant share of the lithium operations involved. This move aims to strengthen national oversight and ensure that the country benefits more directly from its natural resources, which are increasingly vital to the global energy transition.
Industry analysts view this development as a significant step for Chile’s mining sector, reflecting efforts to balance resource development with national interests. It also underscores the country’s growing role in the global lithium market, where demand continues to rise amid the push for renewable energy solutions.