Codelco SQM Lithium Deal Approved by Chile’s Antitrust Authority, Paving Way for JV Control

Codelco-SQM

Chile's antitrust regulator FNE has approved the Codelco SQM lithium deal, a pivotal step toward consolidating state influence over one of the world’s most valuable lithium assets. The Codelco SQM lithium deal gives state-owned copper giant Codelco a path to majority control of the Atacama salt flat operations, currently run by lithium producer SQM.

Global Approvals Advance, Final Hurdles Remain in Chile

The deal has already received green lights from regulators in Brazil, South Korea, Japan, Saudi Arabia, and the European Union. Only China’s approval remains pending. However, for full execution, the transaction must also be cleared by Chile’s nuclear energy commission (CCHEN) and the national development agency Corfo, which is conducting community consultations with indigenous stakeholders in the region.

Codelco aims to finalize the joint venture in the second half of 2025. Under the agreement, Codelco will acquire a 51% controlling interest in the Atacama lithium operations beginning in 2031, when SQM’s current mining lease expires.

Atacama: The World’s Richest Lithium Reserve

Chile holds the world’s largest known lithium reserves, according to the U.S. Geological Survey (USGS). Most of these resources lie in the Atacama salt flat, a globally strategic asset for electric vehicle (EV) battery supply chains. The Codelco SQM lithium deal signals Chile’s long-term strategy to exert greater control over critical minerals while maintaining foreign investment through partnerships.

As the global lithium market becomes increasingly geopolitically sensitive, Chile’s model offers a blend of state participation and private sector efficiency—providing stability while advancing national resource policy.

The Metalnomist Commentary

The Codelco SQM lithium deal marks a defining moment in Chile’s shift toward strategic resource nationalism. With the Atacama salt flat under partial state control, Chile positions itself as a central player in the global clean energy transition, balancing national interests with commercial partnerships.