Codelco and SQM form Novandino Lithium
The merger between Minera Tarar SpA and SQM Salar SpA has resulted in this unprecedented public-private partnership in Chile, with a projection until 2060 and majority state participation. The first board meeting will be held this Monday, December 29.
Novandino Litio is the new joint venture between Codelco and SQM.
Codelco and SQM announced the creation of Nova Andino Litio SpA, resulting from the merger between their subsidiaries Minera Tarar SpA and SQM Salar SpA, respectively, formally establishing the joint venture that will develop the exploration, exploitation, production and marketing activities of lithium in the Salar de Atacama until 2060.
With this operation, communicated through an Essential Fact to the Financial Market Commission (CMF), the public-private partnership between Codelco and SQM is finalized, one of the most relevant in the business history of Chile, which combines state leadership, world-class operational experience and modern and professional governance.
Assets and operational continuity of Novandino Lithium in the Atacama Salt Flat
Novandino Litio consolidates all the assets, subsidiaries, international offices, permits, technical expertise, and human resources necessary for the development of the lithium business, following a reorganization process carried out by SQM between 2024 and 2025. Furthermore, the agreement ensures operational and contractual continuity in the Atacama Salt Flat, under the existing contracts with Corfo and those that will govern from 2031 onwards.
Statements from the leaders
“Codelco is taking a strategic step today to actively participate in lithium production, a key resource for the global energy and digital transition. This partnership with SQM fills us with pride and reflects a new form of public-private collaboration: transparent, professional, and long-term,” said Máximo Pacheco, Chairman of the Board of Codelco.
For his part, Ricardo Ramos, general manager of SQM, highlighted that “this joint venture allows us to project the development of the Atacama Salt Flat and continue advancing with standards of operational excellence, sustainability and shared value creation, combining complementary capabilities for the benefit of Chile and global markets.”
Partnership Agreement, Directory and Commitments
The merger is the result of the Partnership Agreement signed on May 31, 2024, which was reviewed by more than 20 agencies and institutions in Chile and abroad, and included an extensive indigenous consultation process led by Corfo. All background information on the agreement has been publicly available throughout the process (www.acuerdocodelcosqm.cl).
The joint venture's board of directors will consist of three representatives from Codelco—Máximo Pacheco, Josefina Montenegro, and Alfredo Moreno—and three representatives from SQM—Ricardo Ramos, Hernán Uribe, and Manuel Ovalle. The first board meeting will be held on Monday, December 29.
As part of the partnership commitments, SQM transferred all of its mining concessions in the Maricunga Salt Flat to Codelco, significantly strengthening the position of the State of Chile in that strategic territory and enabling the development of future lithium projects.
The companies also reported that the completion of the merger and partnership will have a positive and material effect on Codelco's results, an impact that will be reflected in the financial statements as of December 31, 2025.
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