Lithium Initiative: Codelco & SQM's Manufacturing Future
Codelco, the state-controlled copper giant of Chile, is combining forces with SQM to produce lithium from 2031 to 2060, targeting an industry-critical mineral that is essential for numerous manufacturing processes and technologies.
Demand for lithium has surged due to its pivotal role in the manufacturing of lithium-ion batteries, which fuel energy storage devices and electrification systems.
Codelco's Chairman, Máximo Pacheco, says: “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, which will allow us to fight the climate emergency.”
He further adds: “We will do so as partners of SQM, a Chilean company that has the scale, technical and human expertise, financial resources and sales network that we need to avoid missing the opportunities that now open themselves up to us.”
Exploring Codelco's legacy and ambitions
Founded in 1976, the National Copper Corporation of Chile, known as Codelco, stands as a global leader in copper production.
The company’s objectives encompass exploring and exploiting mineral resources and producing refined products for worldwide markets.
Though its seven mining divisions, Chuquicamata, Ministro Hales, Radomiro Tomic, Gabriela Mistral, Salvador, Andina and El Teniente, Codelco is committed to sustainability.
By 2030, it plans to cut its greenhouse gas emissions by 70% by adopting a clean energy matrix, recycling 65% of its industrial waste, and reducing its inland water usage by 60.
Introducing SQM's role
SQM, short for Sociedad Química y Minera de Chile, is renowned for its supply of lithium, iodine and various industrial chemicals, with its primary facilities located in the Atacama Desert.
Discussing the new initiative, Ricardo Ramos, the company's CEO, says: “The projects we are going to develop with Codelco will be extraordinarily positive for Chile, the Antofagasta Region, communities, workers and for both companies.”
Highlighting the company’s credentials, Ricardo explains: "This partnership is proof of the confidence we inspire with our over 25 years of experience producing lithium from the Salar de Atacama and refining it at the chemical plant in Antofagasta, our operational efficiency and the business synergies.”
He further emphasises SQM’s dedication to stringent environmental standards and ongoing dialogue with the Atacameño communities to safeguard local ecosystems.
The importance of lithium in manufacturing
Possessing significant electrochemical advantages and a lightweight nature, lithium plays a crucial role in manufacturing, particularly in the production of lithium-ion batteries.
These batteries are a cornerstone of electric vehicles and vital for energy storage across various renewable energy systems.
With South America’s 'lithium triangle', home to a staggering 85% of global reserves, accounting for 29% of production and Chile acting as the second-largest producer worldwide, the importance of this crucial mineral cannot be overstated.
This makes Chile an ideal hub for advancing lithium production aimed at reducing reliance on traditional energy forms.
Codelco and SQM: a strategic lithium partnership
In their strategic alliance, Codelco and SQM are poised to bring refined lithium to the fore through substantial investments in advanced, sustainable technology.
Initially, SQM will manage the project operations until 2030, after which Codelco will assume control from 2031 to 2060.
Operations are slated to commence in 2025, establishing a critical link in manufacturing paths for future technologies.
