Codelco and Rio Tinto Collaborate on Major Lithium Project in Chile

Codelco partners with Rio Tinto for lithium extraction from Maricunga salt flat. Rio Tinto invests $900 million for a 49.99% stake in the project. Chile has second-largest lithium reserves after Australia and aims to increase production through new partnerships. The joint venture is expected to finalize by March 2026.

In a significant move for both companies, Chile’s state-owned copper powerhouse Codelco revealed on Monday its partnership with British-Australian miner Rio Tinto. The joint effort aims to extract lithium from the Maricunga salt flat, recognized as housing the world’s second-largest reserves of this essential metal, crucial for electric vehicle and smartphone batteries.

The race for lithium is intensifying, particularly within the Lithium Triangle, which includes Argentina, Bolivia, and Chile. This trio together holds roughly 60 percent of the global lithium reserves, as per data from the United States Geological Survey (USGS). The Maricunga salt flat stands out in northern Chile, noted for its lithium concentration in brine, only surpassed by the well-known Atacama salt flat.

In a financial commitment to this venture, Rio Tinto has agreed to invest $900 million to obtain a 49.99 percent share of the joint project, named Salar Maricunga SpA. Codelco will maintain a controlling interest at 50.01 percent. Notably, Chile ranks as the second-largest lithium producer in the world, trailing only Australia, and currently sources all its lithium from the Atacama salt flat.

In 2023, Chilean President Gabriel Boric emphasized expanding lithium production through strategic public-private collaborations focused on unlocking new deposits. Codelco’s chairman, Maximo Pacheco, characterized this initiative as a pivotal part of the company’s broader diversification strategy.

Rio Tinto, the second-largest mining entity globally after BHP, operates across 35 countries and already has investments in lithium projects located in Argentina and Serbia. The expectations are high for this new venture, with completion anticipated by the end of March 2026.

As the global demand for lithium continues to soar, this partnership between Codelco and Rio Tinto underscores the essential role of Chile’s lithium resources in the future of sustainable technology and energy.

This collaboration exemplifies a significant step towards bolstering Chile’s position in the lithium market, while also aligning with global trends of sustainability and electric vehicle production.

The partnership between Codelco and Rio Tinto to extract lithium from the Maricunga salt flat is poised to enhance lithium production in Chile. With Rio Tinto investing significantly and gaining a nearly 50 percent stake, the venture reveals a strategic shift towards diversifying lithium sources in response to rising global demand. This initiative aligns with broader efforts in Chile to strengthen its position in the lithium market, crucial for sustainable technologies. The deal’s completion by 2026 marks a promising development for the industry.

Original Source: www.tiogapublishing.com