SANTIAGO - Chile's State copper producer Codelco and lithium company SQM have agreed to a final deal to create a joint venture for lithium production in the Salar de Atacama, both companies said in statements on Friday.
The deal will grant majority control to Codelco, a core element of President Gabriel Boric's strategy to boost government production of lithium, which is a key material for most batteries that power electric vehicles.
"Just as we have contributed to making Chile the world leader in copper production, we will now contribute to making our country a leader in the production of lithium, another mineral critical to the energy transition," Codelco chairman Maximo Pacheco said in a statement.
He added that the partnership must still go through several more steps before going into effect.
The deal, which was originally outlined in December, is set to begin in 2025 and run through 2060, with Codelco overseeing general management as of 2031.
It will encompass current SQM operations in the Atacama salt flat, one of the world's most prized areas for lithium extraction.