SANTIAGO – A landmark lithium deal between SQM and state-owned Codelco is on track to be finalized in the second half of 2025, following key antitrust clearance from Chile’s competition agency, the FNE.
The approval marks a significant step toward completing the agreement before Chile’s general elections, set to begin in November.
Under the agreement, SQM would transfer a majority stake in its highly valuable Atacama salt flat operations to Codelco in exchange for extending its mining rights through 2060.
The FNE’s preliminary green light is conditional on corporate governance measures, which Codelco described as “standard.”
The domestic antitrust clearance follows similar approvals from agencies in Asia and Europe, significantly advancing the timeline for finalization.
This is especially critical with a new administration set to take office in March 2026. Evelyn Matthei, the current frontrunner in the presidential race, has stated she intends to review the agreement if elected.
The partnership is central to President Gabriel Boric’s strategy of increasing state involvement in lithium production while doubling national output.
His policy mandates that state-owned firms lead projects in strategically significant lithium regions through joint ventures with private companies.
However, the deal is progressing against a backdrop of depressed lithium prices, which are currently at their lowest levels in four years due to market oversupply and global trade uncertainty.
Several hurdles remain. Chinese authorities have not yet weighed in, and Tianqi Lithium Corp. — a significant SQM shareholder — is challenging the agreement in court, arguing it lacks transparency and should be subject to a shareholder vote.
Additionally, an indigenous consultation process is ongoing, and approval is still pending from Chile’s nuclear energy commission, which oversees certain lithium-related transactions.
