SQM-Codelco venture targets 70% boost to lithium production in Chile

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SQM and Codelco's Novandino joint venture is targeting a more than 70% increase in lithium production from its Atacama Desert operations, according to an environmental impact study filed Friday. The venture aims to reach as much as 470,000 metric tons per year, compared with fiscal 2026 guidance of about 270,000 tons, as part of a $3 billion overhaul. Output is expected to rise gradually to around 300,000 tons before a seven-year transition to an integrated production system that includes direct lithium extraction technologies. Benchmark Mineral Intelligence analyst Federico Gay said reaching the 470,000-ton target would require additional engineering work, further studies, potential changes to production quotas, and successful deployment of direct lithium extraction technologies aimed at reducing water consumption in the Atacama salt flats. The SQM-Codelco partnership is central to Chile's strategy to increase state participation in lithium production while expanding supply from the world's richest brine deposits.

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Corporación Nacional del Cobre de Chile (Codelco)Private▲ Positive
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Codelco's joint venture aims to significantly expand lithium production, boosting its revenue from the partnership.

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