SANTIAGO, Nov 11 — China has given the green light to a major partnership between Chile’s state-owned copper giant, Codelco, and lithium company SQM, unlocking plans to ramp up extraction in the Atacama salt flat — one of the world’s top lithium sites.

Chile holds about 40 per cent of the world’s lithium reserves and is the second-largest producer of the metal, a key product for electric vehicles and other clean energy technologies.

Set to run through 2060, the partnership aims to restore Chile’s leadership in lithium production, a title it lost to Australia nearly a decade ago.

The deal, announced in late 2023, has now passed regulatory checks in several nations, with only Chile left to sign off.

“This is a proud moment for Codelco, SQM, and Chile,” said Codelco chairman Maximo Pacheco.

“We’re ready to help drive the global energy transition with the minerals the world needs.”

SQM is one of the top global suppliers, with Chinese firm Tianqi owning a 22 per cent stake. — AFP