Codelco and Rio Tinto Team Up for Major Lithium Project in Chile

Codelco partners with Rio Tinto for lithium extraction in northern Chile. The joint venture, Salar Maricunga SpA, will focus on the Maricunga salt flat. Rio Tinto invests $900 million for a 49.99 percent stake, while Codelco retains control. This initiative is part of Chile’s strategy to expand lithium production, addressing growing global demand.

In a significant development for the lithium market, Chile’s state-owned mining company Codelco has announced a partnership with the British-Australian mining giant, Rio Tinto, to extract lithium from a prime location in northern Chile. On Monday, the companies revealed their joint venture, dubbed Salar Maricunga SpA, which will focus on the Maricunga salt flat. This site houses the world’s second-largest lithium deposits, attracting considerable interest as demand for the metal in electric vehicle and smartphone batteries surges.

The Maricunga salt flat, known for its rich concentration of lithium brine, ranks just below the Atacama salt flat, located along the Chile-Bolivia border. Codelco, recognized as the largest copper producer globally, disclosed that Rio Tinto will invest a notable $900 million to secure a 49.99 percent share in the venture, ensuring Codelco maintains a controlling 50.01 percent stake.

As the world’s second-largest lithium producer, trailing only Australia, Chile has been increasingly active in the lithium sector. Currently, the Atacama salt flat is the country’s sole lithium source, but recent initiatives led by Chilean President Gabriel Boric are aimed at expanding production. In 2023, President Boric initiated efforts to develop more public-private partnerships to tap into other lithium deposits within the nation.

Codelco’s chairman, Maximo Pacheco, emphasized that this endeavor aligns with the company’s strategy for diversification. The partnership with Rio Tinto is a pivotal step toward achieving this goal, with expectations for the joint venture’s formalization by March 2026. Meanwhile, Rio Tinto continues to enhance its portfolio, holding stakes in lithium projects beyond Chile, including successful ventures in Argentina and Serbia.

Given the substantial participation from both companies, this strategic partnership is poised for significant impact on Chile’s lithium production landscape and its positioning in the competitive global market.

The partnership between Codelco and Rio Tinto marks a strategic move to harness the promising lithium resources found in Maricunga salt flat. With Rio Tinto investing $900 million for a nearly 50 percent stake, both companies aim to increase lithium output in response to growing demand in the electric vehicle market. This venture aligns with Chile’s broader goals of expanding its lithium production capabilities. As the project unfolds over the next few years, it is set to influence the dynamics of the global lithium industry significantly.

Original Source: www.tiogapublishing.com