Thanks to a public-private partnership, Codelco will lead the development of the industry for decades to come.
A historic announcement was made on December 27, since thanks to a public-private alliance, the State of Chile will have a majority share in the extraction of lithium.
The process began last April 23 when President Gabriel Boric presented to the country the National Lithium Strategy, in which Corfo was instructed to find, through Codelco, the best formula to ensure Chile's participation in the exploration and exploitation of lithium and other mineral substances in the Salar de Atacama.
On May 31, Codelco and SQM initiated a negotiation process for the formation of a public-private partnership to jointly develop production and commercial activities.
Thus, Codelco and SQM finally agreed to form a joint venture as of January 1, 2025, with a majority participation of the State (50% plus one share) through Codelco, which will allow them to operate in the Salar de Atacama until 2060.
The project is based on the incorporation of technologies that allow progress towards the water balance of the ecosystem, as well as the active participation of the communities of the territory.
The State of Chile will increase the benefits it receives since, in addition to taxes and lease payments (which Corfo receives), as of 2025 it will receive profits as a shareholder.
With this step Codelco fulfills the mandate of the State of Chile to seek the best ways to achieve state participation in the production of #LitioPorChile and other mineral substances in the Salar de Atacama.
Thus, the lithium industry grows, research and innovation capabilities are developed and we also generate new jobs for Chileans, always with respect for the communities and the environment.
"From 2025, thanks to this agreement, the State of Chile, the communities and, in particular, the Antofagasta Region, will be favored in various ways: receiving dividends as a shareholder; with the payment of leases, royalties and general taxes; with the assurance of the operational continuity of the sites, and with the increase in the share of lithium production and sales", Gabriel Boric, President of the Republic.
Source: Government of Chile
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