Codelco Lithium Ascotan Move Expands Chile’s Strategic Control Over New Brine Assets

Codelco Lithium

Codelco lithium Ascotan plans mark another important step in Chile’s effort to keep stronger state influence over future lithium supply. Codelco and Quiborax formed a joint venture called Minera Ascotan and applied for a special lithium operating contract. That contract is required for lithium extraction in Chile. As a result, Codelco lithium Ascotan plans now sit at the center of Chile lithium strategy.

This move matters because Ascotan is not a minor asset. The salt flat is described as the third largest lithium reserve in Chile. That gives the project long-term strategic value inside one of the world’s most important lithium jurisdictions. Therefore, Codelco lithium Ascotan plans strengthen the state miner’s growing role in Chile’s next lithium phase.

The structure of the deal also reveals the political logic. Chile’s current framework requires public-private partnerships so the state can retain control while private capital supports development. That model has been in place since 2023 under the CEOL-based lithium strategy. Consequently, Chile lithium public-private partnership is now the main route for new project access.

Ascotan Salt Flat Adds to Codelco’s Expanding Lithium Portfolio

Ascotan salt flat adds another major asset to Codelco’s widening lithium position. The state miner is already set to become the majority owner in SQM’s Atacama operations from 2031. It is also advancing its partnership with Rio Tinto at Maricunga. As a result, Codelco lithium Ascotan plans are part of a broader portfolio build, not a standalone move.

That portfolio strategy matters because Chile wants more than royalty exposure from lithium. It wants stronger long-term participation in ownership, production, and strategic decision-making. Codelco is clearly becoming the state’s main operating vehicle for that ambition. Therefore, Ascotan salt flat could become another pillar in Chile’s effort to shape its own lithium future more directly.

The Quiborax partnership appears tactical as well as commercial. The article suggests Codelco likely chose a non-mining partner to secure the CEOL process more quickly. That reflects rising urgency ahead of a political transition. Meanwhile, it shows how project structure can be shaped by policy timing as much as geology.

Chile Lithium Strategy Faces a Political Test as New Leadership Nears

Chile lithium strategy now faces a more uncertain political backdrop. The article notes that incoming president Jose Antonio Kast has shown willingness to change the country’s lithium mining policy. He is scheduled to take office on 11 March. As a result, Codelco lithium Ascotan plans may also be an effort to lock in strategic progress before policy direction potentially changes.

The future ownership structure also remains important. Quiborax currently holds 66pc of the joint venture, but both initial partners are expected to make room for a new majority owner once the CEOL is granted. That new partner would be responsible for developing the project. Therefore, Chile lithium public-private partnership will remain central even if Codelco keeps strategic influence.

This makes the Ascotan move significant for the wider market. It shows Chile is still pushing forward with a state-guided lithium model, even as political uncertainty grows. If Codelco continues adding assets at this pace, Boric’s vision of making it Chile’s leading lithium producer could become more credible than many expected.

The Metalnomist Commentary

This move matters because it shows Chile is still trying to build lithium control through structure, not just ownership slogans. Codelco is becoming the state’s main instrument for that strategy. If Ascotan advances, Chile may prove that public-private lithium development can still move forward even in a changing political environment.

US Lithium Salt Imports Decline in 2024 Amid Slower EV Adoption

Lithium Mining

Inventory Destocking and Market Shifts Contribute to Lower Import Figures

The United States saw a significant drop in lithium salt imports in 2024, with total imports falling to 16,170 metric tonnes (t), an 11% decrease compared to the previous year. This decline is attributed to a combination of inventory destocking and slower-than-expected adoption of electric vehicles (EVs).

Factors Behind the Decline in Lithium Salt Imports

The drop in imports can be linked to several factors, including price declines and the limited shelf life of lithium salts. As prices fell, US importers consumed lower stocks, adjusting to market conditions. Additionally, the shift towards lithium iron phosphate (LFP) batteries, which favor lithium carbonate over other lithium salts, further contributed to the decreased demand for lithium oxide and hydroxide.

Impact of Lithium Carbonate and Hydroxide Preferences

Imports of lithium oxide and hydroxide saw a dramatic 25% decrease, amounting to just 705 tonnes in 2024. Meanwhile, imports of lithium carbonate, which is crucial for LFP batteries, dropped by 10% to 15,465 tonnes. This change in battery technology preference has driven the demand for lithium carbonate, particularly as more automakers adopt LFP batteries for their EVs.

Source Countries and Global Lithium Supply Chain

Chile and Argentina played a dominant role in supplying lithium salts to the US, accounting for 98% of the total imports. Chile supplied 9,105 tonnes, while Argentina provided 6,779 tonnes. These two countries remain key players in the global lithium supply chain, with their resources being crucial to meeting the US's demand for lithium salts.

Chile lithium contract with Enami anchors new national strategy

Chile lithium mining

Chile lithium contract with Enami marks a major step in the country’s new lithium strategy. The agreement grants Enami rights over the Altoandinos salt flat, Chile’s largest undeveloped lithium deposit. It also establishes the first special lithium operation contract, known locally as a Ceol, under Boric’s strategy.

Altoandinos salt flat and Chile’s lithium strategy

The Chile lithium contract with Enami runs until 2060 and targets production starting around 2032–2034. Enami and partner Rio Tinto plan to develop the Aguilar, Grande and La Isla salt flats. The state miner reports 15mn tonnes of lithium carbonate equivalent, significantly above Chile’s published resource base. As a result, Altoandinos could become a flagship asset within Chile’s broader national lithium strategy.

Chile lithium contract with Enami operates within a strict strategic resource and nuclear oversight framework. Laws from the 1970s and 1980s classify lithium as strategic and limit purely private concessions. Therefore, Ceols must pass review by the nuclear energy commission and other state institutions before development. This framework aims to capture more value for Chile while controlling environmental and social risks in the Atacama.

Global EV supply chains and Chile’s lithium leadership

Chile remains the world’s second largest lithium producer, anchored by SQM and Albemarle in the Atacama salt flat. However, the Chile lithium contract with Enami shows how future growth will rely more on state led partnerships. The Altoandinos project can diversify production beyond the core Atacama operations and support long term export revenues. Meanwhile, global battery and EV manufacturers will view this contract as an important new source of high grade brine.

Competition for secure lithium supply will intensify as more countries classify the metal as strategic. Therefore, Chile lithium contract with Enami sends a strong signal to investors about policy direction and project pipeline. International partners must understand the state’s central role, longer development timelines and heightened community expectations. As a result, any Altoandinos timetable slippage could reshape global supply expectations for EV batteries and energy storage.

The Metalnomist Commentary

Chile’s new contracting model blends resource nationalism with pragmatic partnerships across the lithium value chain. Investors that align with this approach and accept higher state involvement may gain durable exposure to premium brine assets. Yet they must also plan for stricter governance, evolving royalty regimes and closer scrutiny from global downstream customers.

Chengxin Lithium Secures License for Asia's Largest Lithium Deposit in Sichuan

Yajiang County Huilong Mining

Yajiang County Huilong Mining, a subsidiary of Chengxin Lithium, has obtained a mining license for the Murong lithium mine in Yajiang County, Sichuan Province, China. The license, effective until 2048, grants access to a resource of 61.095 million tons with an average grade of 1.62% lithium oxide, equivalent to 989,600 tons of lithium oxide. This positions Murong as one of Asia's largest hard rock monomer lithium deposits, with an annual production capacity of 3 million tons of ore.

Expanding Lithium Production Amid Rising Demand

In 2023, Chengxin Lithium increased its lithium salt production—primarily lithium carbonate and lithium hydroxide—to 56,700 tons, marking a 19% year-on-year growth. Sales rose by 11% to 52,900 tons, reflecting growing global demand for lithium-driven by electric vehicles and renewable energy storage solutions.

Chengxin's total production capacity now stands at 137,000 tons per year, with 77,000 tons sourced domestically from China and 60,000 tons produced in Indonesia. To diversify its feedstock, the company also taps its Sabi Star lithium mine in Zimbabwe, which contributes 200,000 tons annually of concentrate.

A Strategic Advantage for Chengxin and China

The Murong lithium mine acquisition strengthens Chengxin Lithium's foothold in the global lithium supply chain, critical for battery production and clean energy transition. This move aligns with China's strategy to secure domestic and international lithium resources, ensuring its leadership in the EV and energy storage markets.

Key Takeaways

Murong Lithium Mine: One of Asia's largest hard rock lithium deposits with high-grade lithium oxide reserves.

Production Growth: Chengxin's lithium salt production surged by 19% in 2023.

Global Supply Chain: Significant contributions from China, Indonesia, and Zimbabwe bolster Chengxin's raw material security.

With rising EV adoption and renewable energy investments, Chengxin's latest acquisition underscores its pivotal role in powering a sustainable future.

Zabuye lithium project marks major step in China’s brine supply expansion

Zabuye lithium Salt lake

The Zabuye lithium project in Tibet has entered its second phase, expanding China’s brine-based lithium capacity. The Zabuye lithium project now adds sizeable battery-grade output at a time when the global lithium market is tipping into surplus. As a result, the Zabuye lithium project strengthens China’s ability to influence pricing and security of supply across the EV battery chain.

Phase-two expansion lifts Tibet’s brine lithium capacity

China’s Tibet-based producer has started up phase two at Zabuye with 9,600 t/yr of battery-grade lithium carbonate. The new phase also includes 2,400 t/yr of industrial-grade lithium carbonate, adding flexibility across downstream chemical and industrial customers. Commissioning of the second-phase lines began in late 2023, but full launch slipped from a planned June start into late September. However, the first phase, focused on 7,000 t/yr of lithium concentrate, has remained operational and continues to support the overall project. Zabuye draws on one of the world’s largest salt-lake resources, with proven reserves of around 1.84mn t of lithium in brine. This makes it Asia’s largest lithium brine lake and the third-largest globally, underlining its strategic relevance for long-term supply.

Zabuye lithium project scales into a looser global market

The timing of the Zabuye lithium project expansion coincides with strong growth in global brine output. Market forecasts indicate that global lithium brine production will rise by about 24pc in 2025 to above 370,000t LCE. At the same time, total lithium feedstock supply is projected to reach about 1.6mn t LCE in 2025. Meanwhile, demand is expected to come in near 1.5mn t LCE, implying a surplus of roughly 100,000t. Therefore, new brine tonnes from Zabuye will feed into an already better-supplied market, potentially reinforcing price pressure if demand underperforms. Yet high-quality, low-cost brine projects retain strategic importance, especially for integrated Chinese players.

Strategic shareholders reinforce China’s battery value chain

Zabuye’s ownership underscores its role in China’s EV and battery strategy. Major Chinese battery and lithium companies hold significant stakes in the project, tightening the link between upstream brine resources and downstream cathode and cell manufacturing. This integrated structure allows key players to secure battery-grade lithium carbonate volumes under long-term arrangements. In addition, the project’s location in Tibet diversifies China’s domestic resource base beyond traditional hard-rock and other brine hubs. However, higher-altitude operations and logistics can still pose cost and reliability challenges compared with coastal or overseas assets. Even so, the project is positioned as a core pillar in China’s wider lithium industrial ecosystem.

The Metalnomist Commentary

Zabuye’s phase-two launch shows how Chinese brine projects are still scaling even as the market moves into surplus. For global buyers, the combination of growing Chinese brine capacity and integrated ownership by major EV and lithium players suggests continued competitive pressure on higher-cost producers. The medium-term question is how long marginal assets outside China can remain viable if brine-led oversupply persists.

Chile’s La Isla Lithium Deposit Set to Become Major Project, Enami Reports

Enami

Chile’s La Isla salt flat, located in the northern Atacama region, is on track to become the country’s third-largest lithium project, according to the national mining company Enami. Recent exploration drilling at La Isla returned promising results, with lithium concentrations averaging 921 milligrams per liter (mg/l) and reaching a maximum of 979 mg/l over a depth of 252 meters.

Chile holds the world’s largest lithium reserves, accounting for 36-40% of the global total. Most of these reserves are concentrated in the Atacama salt flat in the Antofagasta region, which has positioned Chile as a major player in the global lithium market. In 2023, the state copper company Codelco reported even higher lithium concentrations at the nearby Maricunga salt flat, where they averaged over 1,000 mg/l after drilling 10 holes.

La Isla: Part of the Altoandinos Lithium Project

La Isla is part of Enami’s broader Altoandinos lithium project, which also includes the Aguilar and Grande salt flats in the same region. Earlier exploration at Aguilar returned lower average lithium concentrations of 740 mg/l, with a maximum of 984 mg/l.

In an effort to enhance lithium extraction methods while minimizing environmental impact, Enami has partnered with eight international laboratories to test direct lithium extraction (DLE) technologies. Among the participating companies are France’s Adionics and Eramet, U.S.-based Lilac Solutions and SLB, China’s CADL-Lanshen, Australia’s Rio Tinto, Canada’s Nanotech, and the UK’s WaterCycle Technologies.

Additionally, Enami is negotiating with six companies to select a partner for the operation and financing of the Altoandinos project, with a decision expected by March 2025. Chile, currently the world’s second-largest lithium producer, continues to rely on output from the Atacama salt flat, and the development of La Isla will further solidify its position as a key global supplier of this essential metal.

Chile Rio Tinto Lithium Deposit Partnership Secures Largest Undeveloped Resource

Chile Rio Tinto

Chile Rio Tinto lithium deposit partnership emerged as Chile's national mining company Enami selected the Anglo-Australian miner to explore and develop the Altoandinos project, the country's largest undeveloped lithium deposit. The Chile Rio Tinto lithium deposit agreement establishes a public-private concession with Rio Tinto holding 51% ownership while Enami retains 49%, representing a combined $3 billion investment where Rio Tinto contributes $425 million for access to over 15 million tonnes of lithium carbonate equivalent resources.

Competitive Selection Process Validates Rio Tinto's Technology Leadership

Chile Rio Tinto lithium deposit selection followed Enami's unanimous board decision choosing Rio Tinto from a competitive pool including China's BYD, France's Eramet, and South Korea's Posco. Rio Tinto's proprietary direct lithium extraction (DLE) technology provided the decisive advantage, offering faster and more environmentally friendly operations compared to traditional evaporation methods. The DLE approach eliminates brine evaporation requirements while accelerating production timelines and reducing environmental impact.

Meanwhile, Rio Tinto's Rincon plant in Argentina serves as a demonstration and pilot facility for Chilean operations since both brine deposits share similar chemical compositions. This existing operational experience provides technical validation and reduces development risks for the Altoandinos project. Rio Tinto will assume complete operational responsibility while financing the project through financial operation and contributing to pre-feasibility study expenses.

Massive Resource Scale Supports 75,000 Tonne Annual Production

However, the Altoandinos salt flat contains substantial lithium resources exceeding 15 million tonnes of lithium carbonate equivalent with production capacity reaching 75,000 tonnes annually according to Enami projections. This production scale positions the project among global lithium industry leaders while supporting Chile's strategic objectives for lithium sector development. The resource magnitude justifies the $3 billion investment commitment from both partnership participants.

Therefore, the project timeline remains under development with no specific operational start date announced pending pre-feasibility study completion and regulatory approvals. The comprehensive development approach ensures technical optimization while addressing environmental and social considerations essential for sustainable lithium extraction. Rio Tinto's operational expertise combined with Enami's local knowledge creates optimal conditions for successful project implementation.

Strategic Expansion Reinforces Chile Lithium Market Leadership

Furthermore, the Altoandinos partnership follows Rio Tinto's recent selection by Chilean copper giant Codelco for the Maricunga salt flat exploration, representing Chile's second-largest undeveloped lithium deposit. This dual partnership positioning demonstrates Rio Tinto's strategic commitment to Chilean lithium development while reinforcing Chile's global lithium market leadership. The concurrent projects create synergies for technology deployment and operational efficiency.

As a result, Chile strengthens its position as the world's premier lithium jurisdiction through strategic partnerships with established international miners possessing advanced extraction technologies. The public-private partnership model enables state participation in resource development while leveraging private sector expertise and capital. This approach maximizes economic benefits while maintaining national control over strategic mineral resources essential for global energy transition.

The Metalnomist Commentary

Chile's selection of Rio Tinto for both the Altoandinos and Maricunga lithium projects demonstrates sophisticated resource development strategy that prioritizes advanced extraction technology and environmental sustainability over purely financial considerations. The emphasis on direct lithium extraction capabilities reflects Chile's commitment to maintaining global lithium leadership through technological innovation, particularly important as competition intensifies from emerging producers in Argentina, Australia, and other jurisdictions seeking market share.

E3 Lithium and Pure Lithium Collaborate to Revolutionize Lithium Metal Battery Production

E3 Lithium

Canadian lithium developer E3 Lithium and innovative battery manufacturer Pure Lithium have signed an agreement to push the boundaries of lithium metal battery production. The two companies will design a lithium metal anode and battery pilot plant near Calgary, Alberta, leveraging lithium concentrate produced by E3.

Simplifying Lithium Battery Production

The partnership aims to evaluate the technical and economic feasibility of a full-scale lithium metal battery facility located adjacent to lithium production sites in Alberta. By merging Pure Lithium’s brine-to-battery technology with E3’s lithium brines and concentrate production, the collaboration seeks to eliminate the need for a lithium salt intermediary, streamlining the battery production process.

The companies have been working together since mid-2022, achieving a major milestone when Pure Lithium produced a lithium metal battery using E3’s lithium concentrate.

A Vision for Vertical Integration

Once the pilot project is complete, the facility is expected to produce 200kg of lithium metal anodes for lithium metal vanadium rechargeable batteries. If successful, this collaboration could lead to the development of the world’s first vertically integrated lithium metal battery technology, a groundbreaking achievement in the energy storage sector.

Driving Innovation in Alberta

This partnership could position Alberta as a hub for sustainable lithium battery production, with implications for the global battery market. As demand for high-performance batteries rises, this innovative approach could significantly impact the future of energy storage solutions.

E3 Lithium and Pure Lithium Join Forces to Revolutionize Battery Production in Canada

In a move set to redefine the landscape of battery manufacturing, Canadian lithium developer E3 Lithium has entered into a collaboration with battery manufacturer Pure Lithium. The two companies have signed an agreement to advance the design and development of a cutting-edge lithium metal anode and battery pilot plant in Canada.

This new facility, to be located near Calgary, Alberta, will leverage lithium concentrate produced by E3 Lithium, utilizing it in the creation of a lithium metal anode—a critical component for next-generation batteries. The partnership aims to explore the technical and economic feasibility of establishing a commercial-scale lithium metal battery facility in proximity to Alberta's rich lithium production sites.

By integrating Pure Lithium's innovative brine-to-battery technology with E3’s established lithium brines and concentrate production, the collaboration seeks to streamline the battery production process by eliminating the need for a lithium salt intermediary. This simplification could lead to more efficient and cost-effective battery manufacturing.

E3 Lithium and Pure Lithium have been collaborating since mid-2022, during which time Pure Lithium successfully produced a lithium metal battery using E3’s lithium concentrate. The upcoming pilot project will be a significant step towards commercial production, with plans to potentially scale up to produce 200kg of lithium metal anodes for advanced lithium metal vanadium rechargeable batteries.

If the pilot proves successful, the companies intend to pursue the development of the world’s first vertically integrated lithium metal battery technology, setting a new standard in the global battery industry.

Chile Advances Direct Lithium Extraction Technology at Altoandinos

Enami

Breakthrough in Lithium Recovery and Sustainability

Chilean state-owned miner Enami has reported promising results from testing direct lithium extraction (DLE) technology at its Altoandinos project, the country’s largest undeveloped lithium deposit. Eight international laboratories participated in the tests, which demonstrated a dramatic reduction in water consumption to 36m³ per metric tonne of lithium carbonate equivalent (LCE) — 55 times less than conventional evaporation pond methods. Lithium recoveries also improved sharply, rising from 42% in traditional processes to an average of 92%.

The DLE method also reduces land use, with a proposed 75,000t per year plant requiring only 10 hectares compared with 1,020 hectares for evaporation ponds. This efficiency addresses one of the key environmental challenges facing Chile’s salt lake ecosystems, which have been under increasing scrutiny from environmental groups and regulators.

Strategic Project Development with Rio Tinto

Enami plans to invest around $3 billion to develop Altoandinos in northern Chile’s Atacama region in partnership with Anglo-Australian mining giant Rio Tinto. The deposit hosts an estimated 15 million tonnes of LCE resources across the Aguilar, La Isla, and Grande salt lakes. Agreements have been secured with six indigenous communities in the region, ensuring local stakeholder involvement in the project’s advancement.

This initiative aligns with Chile’s national lithium strategy, launched in April 2023, which targets increased lithium production while safeguarding fragile salt lake ecosystems. The strategy mandates a transition from evaporation-based extraction to DLE and sets a goal of protecting at least 30% of salt lake environments.

The Metalnomist Commentary

Chile’s successful DLE test results could significantly reshape the global lithium supply chain by lowering environmental impacts while boosting yields. If scaled effectively, Altoandinos could emerge as a model for sustainable lithium production, positioning Chile as a leader in both output and ecological stewardship. The real test will be maintaining these efficiencies at commercial scale while navigating regulatory and community engagement challenges.

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.

Albemarle DLE Project Targets Higher Lithium Recovery in Chile’s Atacama

Albemarle

Albemarle DLE project plans in Chile could reshape lithium production at the Atacama salt flats by increasing recovery while reducing net brine extraction. The US-based lithium producer has submitted an environmental assessment for a $3.1 billion direct lithium extraction project at its Chilean operations.

The project is designed to add DLE capacity alongside Albemarle’s existing evaporation pond system. The company said the technology could recover nearly twice as much lithium while extracting up to 300 fewer liters per second of brine compared with traditional evaporation methods.

Albemarle DLE project development matters because Chile remains one of the world’s most important lithium supply regions. Any improvement in recovery, water management, and environmental performance could influence future lithium investment across brine-based operations.

Direct Lithium Extraction Could Change Atacama Production Economics

Direct lithium extraction uses chemical processing rather than long evaporation cycles. This can reduce production time from 12-18 months to just days, improving project flexibility and potentially accelerating lithium output.

Albemarle plans to install six DLE processing trains across three modules. These trains will complement the company’s evaporation ponds rather than immediately replace the existing system.

The process will produce lithium-depleted brine, which Albemarle plans to reinject into the salt flats’ reservoirs. Each DLE module would allow reinjection of 100 liters per second of brine, potentially reducing the company’s net extraction rate from 442 liters per second to 142 liters per second once the system reaches full capacity.

Infrastructure Investment Shows Scale of Lithium Transition

The Albemarle DLE project is not only a processing upgrade. The $3.1 billion plan also includes supporting infrastructure such as a power transmission line, a new electric substation, expansion of an existing substation, and adaptations to storage sites and pond systems.

Construction is expected to begin in the second half of 2028. The full buildout may take up to nine years, with modules commissioned and ramped up as they are completed.

The long timeline shows that DLE remains a complex industrial transition, not a simple plug-in technology. However, if successful, Albemarle’s project could strengthen Chile’s lithium competitiveness while responding to environmental pressure over brine extraction in the Atacama.

The Metalnomist Commentary

Albemarle’s DLE plan shows that the next phase of lithium competition will focus on recovery efficiency and environmental performance, not only reserve size. Chile’s challenge will be proving that higher output and lower brine impact can move together at commercial scale.

Lithium Chile Sells 80% Stake in Arizaro Lithium Project for $180 Million

Arizaro

Lithium Chile, a Canada-based lithium mining company, has agreed to sell its 80% stake in the Arizaro lithium project in Argentina for $180 million. The deal, announced on Thursday, involves a binding letter of intent with a large Asian company operating in mining, renewable energy, and technology sectors. However, Lithium Chile has not disclosed the buyer’s identity.

The Arizaro lithium project, located in Salta province, is a key lithium asset with an estimated 4.12 million metric tonnes (mt) of lithium carbonate equivalent (LCE) and a projected 20-year mine life, according to Lithium Chile's official reports.

Regulatory Approvals Pending

The sale is still subject to government and regulatory approvals, which must be finalized before the transaction is completed. The project is managed through Geo Inversiones Mineras, Lithium Chile’s Argentinian subsidiary.

Lithium Chile operates 11 properties covering over 100,000 hectares (ha) in Chile and approximately 30,000 ha in Argentina, positioning it as a major player in South America’s lithium market.

Strategic Position in the Lithium Triangle

The Arizaro salt flat is part of Argentina’s growing lithium industry, which is crucial to the "lithium triangle", a region comprising Argentina, Bolivia, and Chile that holds approximately 60% of the world’s lithium resources.

The sale of this key lithium asset underscores increasing Asian investment in South America's lithium sector, as demand for battery metals continues to rise in response to global EV market growth.

Argentina Lithium Feedstock Factory Could Cut Costs and Strengthen Local Supply

Argentina Lithium

The Argentina lithium feedstock factory could change the country’s cost structure for lithium brine processing. Tsingshan is preparing to open the plant in Jujuy. The site will produce soda ash and hydrochloric acid locally. As a result, the Argentina lithium feedstock factory could reduce import dependence across the highland lithium sector.

The project matters because reagents are central to lithium brine processing economics. Producers in Argentina still import most chemical inputs. That raises logistics costs and delays deliveries to remote operations. Therefore, local chemical supply could improve both margins and reliability.

Tsingshan has upgraded the Perico facility since July 2023. The plant can produce up to 30,000 metric tonnes per year of soda ash. Hydrochloric acid capacity has not been disclosed. However, even partial local supply would ease pressure on upstream lithium projects.

Local Chemical Supply Could Lower Argentina Lithium Production Costs

Argentina lithium production costs remain structurally high versus Chile. Operators face difficult access routes and limited road infrastructure. That makes reagent transport more expensive. Consequently, Argentina’s operating costs are about 20 percent higher today.

Feedstock demand also shows the scale of the logistics burden. Around 4 tonnes of feedstock are needed for 1 tonne of lithium carbonate. One producer in Salta receives about 20 trucks per day. Therefore, every local tonne of reagent could reduce freight intensity.

The Argentina lithium feedstock factory could improve competitiveness without waiting for major mining expansion. Lower chemical costs would support existing producers first. It could also improve project economics for new entrants. Meanwhile, investors may view local input manufacturing as a positive signal for long-term industrialisation.

Tsingshan Argentina Expands Beyond Chemicals Into Resource Positioning

Tsingshan Argentina is not building only a support asset. The company has also partnered with Jujuy on a lithium project in the Olaroz salt flats. That creates vertical alignment between chemicals and extraction. As a result, Tsingshan could strengthen its position across the regional lithium value chain.

This approach reflects a broader shift in battery materials strategy. Companies increasingly want control over feedstocks, processing, and resource access. Argentina offers scale, but it still needs better industrial support systems. Therefore, reagent localisation may become a model for future investment.

For global supply chains, the message is clear. Lithium competitiveness does not depend only on geology. It also depends on chemicals, roads, and execution. The Argentina lithium feedstock factory highlights how midstream support can reshape upstream economics.

The Metalnomist Commentary

Argentina’s lithium challenge has never been only about resource quality. It has also been about cost inflation caused by imported inputs and weak infrastructure. If this plant performs well, local feedstock production could become one of the country’s most practical competitive advantages.

Rio Tinto Chosen as Codelco Lithium Partner in Chile's Maricunga

Codelco

Chilean state miner Codelco has selected Rio Tinto as its strategic partner to develop lithium in the high-grade Salar de Maricunga basin. The newly announced joint venture marks a significant milestone for Chile’s lithium roadmap, positioning the Rio Tinto Codelco lithium partnership as a key force in one of the world’s richest brine regions. The agreement grants Rio Tinto a 49.99% stake, with Codelco holding 50.01% and leading the development.

$350 Million Investment Sets Stage for DLE Breakthrough

Under the terms of the deal, Codelco will contribute mining rights and fund feasibility studies, while Rio Tinto will initially invest $350 million in further resource analysis. If the project advances, the Australian miner has committed another $500 million to construct a direct lithium extraction (DLE) plant by the decade’s end. An additional $50 million will be invested if lithium is commercially shipped before 31 December 2030. The Rio Tinto Codelco lithium partnership aims to commercialize Maricunga as Chile’s second lithium-producing salt flat after Salar de Atacama, where Codelco also now holds licenses.

Chile Reinforces Public-Private Lithium Model

This partnership aligns with Chile’s national lithium strategy, which mandates Special Lithium Operating Contracts (CEOLs) under public-private frameworks. Since 2023, all lithium reserves are state-owned, and any development requires government participation and profit-sharing. The Rio Tinto-Codelco project represents one of three concessions awarded recently, following community approval from nearby indigenous groups. The Rio Tinto Codelco lithium partnership also signals growing trust in DLE technology and a potential shift in how Latin American lithium assets are developed.

The Metalnomist Commentary

The Rio Tinto-Codelco lithium alliance reflects a global trend: pairing major miners with national resource holders in strategic battery material projects. With political backing, high-grade resources, and DLE innovation, Maricunga could become South America's next lithium flagship.

PLS Ngungaju Lithium Plant Restart Signals Stronger Confidence in Spodumene Demand

PLS

PLS Ngungaju lithium plant restart marks a notable shift in sentiment across the lithium sector. PLS said it will restart the Ngungaju processing plant at Pilgangoora in Western Australia, with production resuming in July. The plant has capacity of 200,000 t/yr of spodumene concentrate. As a result, PLS Ngungaju lithium plant restart suggests the company sees stronger customer demand and firmer lithium market conditions ahead.

This move matters because producers do not restart idled capacity lightly. PLS directly linked the decision to sustained improvement in market conditions and customer demand. That makes the restart more than a technical update. Therefore, PLS Ngungaju lithium plant restart is a commercial signal that parts of the lithium market are stabilizing.

Pilgangoora already holds strategic importance in the global spodumene trade. Adding Ngungaju output back into the system strengthens PLS’s ability to respond to improving demand. Meanwhile, the restart also gives the market a clearer sign that producers are becoming more confident in near-term offtake conditions.

Pilgangoora Spodumene Expansion Adds a Bigger Growth Layer

Pilgangoora spodumene expansion is the larger strategic story behind the restart. PLS is also studying an increase in total Pilgangoora capacity to around 2mn t/yr of spodumene. That shows the company is not only restarting existing capacity. It is also thinking about the next scale phase.

This matters because future lithium supply will depend on projects that can grow efficiently from an established base. Pilgangoora already has operating infrastructure and market relevance. Therefore, Pilgangoora spodumene expansion could become one of the more important medium-term supply growth stories in Australian lithium.

The combination of restart and expansion study sends a stronger message than either move alone. A restart suggests near-term confidence. A capacity study suggests longer-term ambition. As a result, PLS is positioning Pilgangoora as both a recovery asset and a future growth platform.

Lithium Refining Strategy Now Moves Closer to PLS Control

Lithium refining strategy is also becoming more central to the company’s direction. PLS agreed to take full ownership of a demonstration refining plant from Calix. That facility is designed to produce more than 3,000 t/yr of concentrated lithium-phosphate salt from about 27,000 t/yr of spodumene feed. Consequently, PLS is moving further downstream as well as restoring mining and processing capacity.

This step matters because lithium producers increasingly want more control over value-added conversion, not only concentrate supply. Full ownership of the demonstration plant gives PLS greater freedom in how it develops its refining path. Therefore, lithium refining strategy is becoming a more meaningful part of the company’s wider portfolio.

The broader implication is clear. PLS is strengthening both upstream and downstream options at the same time. That creates more flexibility if lithium demand continues to recover. Meanwhile, it gives the company more strategic depth than a pure spodumene producer.

The Metalnomist Commentary

This restart matters because it suggests the lithium market is moving from defense toward selective reactivation. The more interesting signal is that PLS is pairing renewed spodumene output with greater refining control. That combination could make Pilgangoora one of the clearer recovery stories in the sector.

Sinomine Resource Slows Lithium Ore Production at Zimbabwe’s Bikita Mine Amid Price Fluctuations

Sinomine Resource

Sinomine Resource, China’s leading lithium mining company, has partially suspended production at its Bikita petalite ore mine in Zimbabwe. The decision reflects falling lithium prices, which have significantly reduced profitability at the 2 million-tonne-per-year petalite site, the company reported. Operations involving other materials at Bikita remain ongoing, with spodumene concentrate production meeting Sinomine’s lithium smelting needs.

Falling Lithium Prices Force Adjustments

Bikita, capable of processing 2 million tonnes each of spodumene and petalite ore since its November 2023 expansion, is fully owned by Sinomine Resource. The site holds resources equivalent to 1.1679 million tonnes of lithium oxide, translating to 2.88 million tonnes of lithium carbonate equivalent (LCE). Earlier this year, Sinomine outlined plans to increase Bikita's output to full capacity, targeting 600,000 tonnes of lithium concentrate in 2024 — evenly split between spodumene and petalite.

The global lithium market has faced downward price pressures as new production capacity, especially in the battery-grade segment, has outpaced demand. Sinomine noted that Metalnomist-assessed prices for 6% lithium concentrate (spodumene) were recorded at $750-820 per tonne (cif China) as of October 8, reflecting an 86% drop from the beginning of 2023.

Despite the price slump, Sinomine remains committed to its strategic resource management at Bikita, having delivered an initial 10,000-tonne batch of lithium concentrate to its lithium salt production lines in China in September 2023. However, future expansion will be closely aligned with price stabilization in the global lithium market.

Lilac Traxys lithium offtake secures 5,000 t/y Utah lithium carbonate

Lilac Solutions

Lilac Traxys lithium offtake locks in Phase 1 output from Lilac’s Utah project. The Lilac Traxys lithium offtake covers 5,000 tonnes per year for 10 years. As a result, Lilac Traxys lithium offtake provides early revenue certainty ahead of first production.

Lilac Solutions and Traxys North America signed a binding agreement for battery-grade lithium carbonate. Traxys will purchase 100% of Lilac’s Phase 1 capacity. Meanwhile, pricing will track market indices, aligning contract value with lithium market cycles.

Why the agreement matters for US lithium supply chains

The deal anchors a domestic lithium carbonate stream starting in 2027. That timing matters as North American battery supply chains seek secure, localised inputs. Therefore, the offtake can support project finance and accelerate execution discipline.

The project targets 5,000 t/yr in the initial phase at the Great Salt Lake facility. Lilac plans a later expansion that lifts total capacity to 20,000 t/yr. However, the larger buildout will depend on permitting, capital, and customer pull.

Direct lithium extraction becomes a commercial test case

Lilac will deploy ion-exchange direct lithium extraction for ultra-low-grade brines. The company reported 87% lithium recovery during 2025 pilot operations. As a result, the Utah site positions DLE as a scalable alternative to slower evaporation routes.

Permitting remains the near-term gate. Lilac is working with state regulators to finalise construction and operating approvals. Meanwhile, US customers will watch product qualification closely, because battery-grade consistency drives long-term offtake value.

The Metalnomist Commentary

This contract signals that buyers now pay for execution certainty, not just resource scale. However, DLE credibility will hinge on consistent recovery rates and stable operating costs. If Lilac delivers on schedule, more index-linked offtakes will follow.

Zijin Zinc Output Fell in 2025 as Lithium and Molybdenum Production Rose

Zijin Zinc

Zijin zinc output declined in 2025 as the Chinese diversified miner shifted part of its zinc production base from open-pit to underground mining. Zijin Mining produced 357,453t metal equivalent of zinc concentrate, down 12% from a year earlier.

The company’s lead concentrate output also fell by 7.5% to 41,065t metal equivalent. Zijin aims to produce 400,000t of zinc and lead concentrate in 2026, broadly in line with its combined 2025 output.

Zijin zinc output was mainly affected by the transition at the Bisha mine in Eritrea. The move to underground mining temporarily reduced production while new infrastructure was being built, with transition-related work continuing through 2025-26.

Bisha Transition Weighed on Zinc as Market Surplus Risk Increased

The Bisha mine remained the main reason behind Zijin’s lower zinc performance. The company expects zinc concentrate output from Bisha to recover by around 10% to 91,000t metal equivalent in 2026, compared with 83,000t in 2025.

Zijin remained China’s largest mined zinc producer and the world’s fourth-largest. The company also retained an advantage in developing and operating lower-grade zinc and lead ore bodies.

China produced around 3.35mn t of mined zinc in 2025, according to industry estimates. However, Zijin expects China’s zinc market to move into surplus in 2026 as rising concentrate supply and weak real estate demand outweigh support from the power generation sector.

The company expects zinc prices to trend lower in the second half of 2026. This outlook suggests that zinc producers may face tighter margins unless infrastructure, power-sector demand, or export flows provide stronger support.

Lithium and Molybdenum Became Key Growth Pillars

Zijin lithium production rose sharply as the company accelerated its battery materials strategy. The miner produced 5,800t of lithium carbonate equivalent in 2025 and plans to lift output to 30,000t LCE in 2026.

The company’s lithium portfolio has entered a faster ramp-up phase. The Laguocuo salt lake project in Tibet, the 3Q salt lake project in Argentina, and the Xiangyuan hard-rock lithium project have all entered production, while construction at the Manono lithium project continues.

Zijin also completed its acquisition to control Zangge Mining. Under its plan, the company expects LCE output to rise sharply to 270,000–320,000t by 2028, positioning it as a major future lithium supplier.

Molybdenum also strengthened. Zijin produced 11,500t in 2025, up 24% from a year earlier, as it moved toward becoming one of the world’s largest molybdenum producers. Its Shapinggou molybdenum project in Anhui received approval for a 10mn t/yr mining and beneficiation project in October 2025, supporting a target of 25,000–35,000t of mined molybdenum by 2028.

The Metalnomist Commentary

Zijin’s 2025 results show a portfolio in transition. Zinc is facing mine-cycle and market pressure, while lithium and molybdenum are becoming stronger growth engines tied to batteries, specialty steels, and energy transition demand.

Zijin Mining Eyes Major Lithium and Potash Expansion with Zangge Acquisition

Zijin Mining

Zijin Mining, a leading Chinese diversified metals miner, is poised to significantly bolster its lithium and potash portfolio through the acquisition of a controlling stake in Zangge Mining. The deal, currently pending board approval and official signing, signals a major strategic move by Zijin to solidify its position in the rapidly growing battery materials market.

Strategic Acquisition to Enhance Lithium and Potash Market Dominance

• Zangge's Production Strength: Zangge Mining produced 1.09 million metric tonnes (t) of potassium chloride and 12,063t of lithium carbonate in 2023, with these commodities accounting for 62% and 38% of its revenue, respectively.

• Strategic Asset Base: Zangge extracts potash and lithium from the Chaerhan Salt Lake in Qinghai Province and holds strategic stakes in salt lakes in Tibet, including Manicuo, Jiezechaka, and Longmucuo, which are currently undergoing permitting and environmental approval processes.

• Zijin's Lithium Ambitions: This acquisition is a crucial step in Zijin's ambitious plan to achieve a lithium carbonate equivalent (LCE) capacity of 250,000-300,000t/yr by 2028. It will significantly enhance Zijin’s existing lithium assets, including the Laguocuo brine and Xiangyuan hard rock project in China, and the Tres Quebradas lithium project in Argentina. The company is also set to launch the Manono project in the Democratic Republic of Congo in 2026, further diversifying its global footprint.

• Market Impact: The acquisition underscores the increasing consolidation within the lithium and potash sectors, as companies seek to secure strategic resources to meet the growing demand for battery materials and fertilizers. Zijin’s move is expected to have a significant impact on the market, potentially influencing pricing and supply dynamics.