Chile’s Corfo Submits Final SQM–Codelco Lithium Lease Terms Through 2060 for Approval
Chile’s economic development agency Corfo announced on Monday that it has submitted to the Comptroller’s Office the terms of a modified lease with lithium producer SQM through 2030, as well as a new lease covering 2031–2060 for a joint venture between SQM and state-owned copper giant Codelco.
The deal represents Chile’s first major state-backed entry into lithium production, with SQM and Codelco expected to finalize their partnership later this year in the Atacama salt flat, one of the world’s richest lithium deposits.
Terms of the Contracts
Corfo, which manages mining rights in Atacama, confirmed that its board approved the final versions of the contracts last week. Key provisions include:
Lease payments linked to lithium prices to ensure revenue sharing.
Contributions to local governments and Indigenous communities to support investment and development projects.
Stricter environmental standards, including commitments to clean energy use and sustainable water management.
Corfo also reaffirmed its preferential pricing program for companies developing lithium-based products within Chile, aiming to promote domestic value-added industries.
To ensure accountability, Corfo will establish a “monitoring table” with Indigenous community representatives to oversee compliance with SQM and Codelco’s commitments.
In a separate statement, Codelco said the agreements would guarantee operational continuity, higher environmental protections, and greater respect for local communities.
The partnership has already secured clearance from several international regulators, but still requires approval from Chinese antitrust authorities, the final condition before the deal can be officially closed.
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