January 4, 2024: Battery-grade lithium producer Sociedad Química y Minera de Chile stated on December 27 it had reached a framework deal to present a majority stake in its Chilean brine belongings to the nation’s state-owned copper company Codelco.
Below the phrases of the memorandum of understanding, if ratified, SQM will have the ability to prolong its operations in Chile for an additional 30 years from 2025.
The settlement goals to construct a public-private partnership to provide high-quality lithium merchandise in Salar de Atacama in a sustainable method and ‘in concord’ with the communities, the businesses stated. There was a lot criticism in recent times for the way in which lithium extraction within the area has created shortages of water for native farmers and broken the atmosphere.
A brand new working firm shall be set as much as spend money on gear and applied sciences wanted for the partnership and to provide lithium carbonate and lithium hydroxide on properties SQM leases from the Chilean Manufacturing Improvement Firm.
The brand new working firm — of which Codelco will personal 50% plus one share to SQM’s 50% minus one share — may even look to start out different tasks and promote lithium worldwide.
The framework settlement follows plans introduced final April by Chile’s president, Gabriel Boric, to nationalize the nation’s lithium business and money in on the significance of the steel to the burgeoning international EV batteries market.
Ricardo Ramos, CEO of SQM, stated: “It is a vital milestone in public-private partnerships in Chile.
“We consider that the profitable growth of the Salar Futuro Challenge will make the Salar de Atacama operations probably the most sustainable lithium operation on this planet.”
Final September, SQM’s Lithium Ventures arm invested practically $2.6 million in UK battery recycling tech agency Altilium as a part of a sequence ‘A’ funding spherical.
Pictured: Aerial view of Atacama services. Picture: SQM
