Chile regulator approves Codelco-SQM lithium tie-up

Chile’s competition regulator has approved a joint venture between state-owned copper giant Codelco and SQM (NYSE: SQM), the world’s second-largest lithium producer, to boost lithium output from the Salar de Atacama.

Under the partnership, Codelco will hold a majority stake — 50% plus one share — aligning with President Gabriel Boric’s push to increase state control over the production of lithium, a key component in electric vehicle (EV) batteries.

The green light from Chile’s Fiscalía Nacional Económica (FNE) follows approvals from regulators in the European Union, Brazil, Japan, South Korea and Saudi Arabia. A decision from Chinese authorities is still pending.

“This is an important milestone. The regulator examined the transaction over nine months with the necessary scrutiny,” Codelco chairman Maximo Pacheco said in the statement.

He noted that discussions with local Indigenous communities are progressing and that final approval from Chile’s nuclear energy commission (CCHEN) is expected later this year.

The joint venture has met opposition from some Chilean lawmakers and legal challenges from Tianqi, a major Chinese stakeholder in SQM.