Chilean miner SQM’s board chairman has challenged the motives of major shareholder Tianqi Lithium Corp of China in an ongoing dispute over SQM’s planned partnership with state copper producer Codelco.
Tianqi, holding about 20% of SQM shares, recently expressed concerns over transparency in SQM’s talks with Codelco.
Under a government policy to boost state control in Chile’s lithium industry, Codelco is set to take a 50% plus one share stake in the new joint venture beginning in 2025.
SQM, the world’s second-largest lithium producer, and Codelco reached an initial agreement in December and aim to finalize details by May 31.
Tianqi CEO Frank Ha highlighted worries over the Codelco deal in comments to Chilean newspaper La Tercera.
In response, SQM board chairman Gonzalo Guerrero questioned Tianqi’s intentions, particularly Ha’s remark about Tianqi’s interest in exploiting lithium from Chile’s Atacama salt flat if the Codelco deal falls through. Guerrero suggested such statements raise doubts about Tianqi’s true objectives.
Tianqi has not yet responded to requests for comment.
Guerrero also rejected Tianqi’s proposal to put the Codelco deal to a shareholders’ vote, fearing it could grant Tianqi veto power and potentially lead to self-interests.
Additionally, Guerrero questioned Tianqi’s plans for the board of directors after one of its nominated members resigned without explanation last week.
Tianqi acquired a near-quarter share of SQM in 2018, prompting regulatory scrutiny over potential market monopolization.
Despite approval by a Chilean antitrust court, conditions were set to limit Tianqi’s access to SQM’s confidential information.
