Chile’s Codelco expects to reach agreement on lithium with SQM this year
- September 5, 2023
- Posted by: Quatro Strategies
- Categories: Americas, Mining & Metals, Rare Earths & Commodities
Chile’s state-owned mining company, Codelco, is reportedly expecting to reach an agreement with lithium miner SQM this year, according to Codelco Chairman Maximo Pacheco. This follows Chile’s government’s announcement earlier this year of plans to strengthen state control over the lithium industry, allowing only public-private partnerships to participate in lithium exploitation.
Chile is home to the world’s largest lithium reserves, making the nation a key player in the global lithium market. The government’s efforts to increase state control over lithium are part of its strategy to maximize the value derived from the country’s lithium resources and to have a greater say in the industry’s development.
This development aligns with a broader trend among resource-rich nations to encourage domestic processing and value-added activities for minerals rather than simply exporting raw materials. By increasing state participation and control in lithium mining and processing, Chile aims to capture a larger share of the economic benefits associated with the booming lithium-ion battery industry.
While lithium prices have experienced fluctuations in recent years, demand for lithium-ion batteries continues to grow due to their use in electric vehicles (EVs), energy storage systems, and other applications. As a result, lithium remains a critical resource for the clean energy transition, and nations with significant lithium reserves are seeking to position themselves as key players in the global supply chain.
Chile’s push for greater state control over lithium is seen as a way to ensure the country benefits from the growing demand for lithium-ion batteries and the transition to EVs, which is expected to accelerate in the coming years.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Italy moves to curb Chinese stakes in strategic firms, tightening U.S. alignment
Italy’s push to limit Chinese stakes in strategic companies marks a significant escalation in Europe’s balancing act between safeguarding national security, preserving U.S. relations, and maintaining economic ties with Beijing. The moves under consideration by Prime Minister Giorgia Meloni’s government would target key assets in sectors such as energy, transport, and advanced manufacturing, areas where Chinese investment once flowed freely but is now viewed through the lens of geopolitical risk.
The Pirelli case illustrates how corporate governance issues have become intertwined with security concerns and U.S. pressure. Washington’s warning that Pirelli’s cyber-sensor-equipped tires could face U.S. restrictions reflects a broader American campaign to push allied nations to limit Chinese ownership in firms tied to connected vehicle technology, data processing, and other dual-use capabilities.
China’s property sector woes set to increase with more debt defaults incoming
Debt defaults in China’s property sector are expected to increase further as developers grapple with a sluggish housing market and find it increasingly challenging to raise funds. According to credit analysts, a significant portion of the $175 billion Chinese property dollar bond sector…
Nickel’s rally runs into a half-million-tonne overhang
Nickel has started 2026 as one of the better performers in the base metals complex, and the trade behind the move is easy to articulate. After four straight years of crushing oversupply, the market is betting that Indonesia, the country that single-handedly created the glut, is finally easing off the accelerator.
Jakarta has tightened mining quotas, and its processing industry is wrestling with a sulfur squeeze that constrains the acid-leaching plants feeding battery-grade output. The thesis is coherent. The problem is sitting in plain sight in exchange warehouses on two continents: 468,600 tonnes of refined metal across the London Metal Exchange and the Shanghai Futures Exchange, the heaviest stock overhang since 2015 and roughly six weeks of global consumption.