Chilean firms announce creation of major company to exploit lithium

Chile's state-owned Codelco, the world's leading copper producer, and private miner SQM signed a lithium mining agreement to create a major company to exploit lithium on Saturday.

The South American country is the world's second-largest producer of lithium, a lightweight metal used in batteries for electric vehicles.The agreement was approved by more than 20 national and international regulatory bodies, including in China, Brazil, Saudi Arabia and the European Union.

Chile was the last of the countries to clear the deal.According to Codelco, with this agreement the Chilean state will receive around 70 per cent of the operating margin generated by the new production between 2025 and 2030, and starting in 2031, 85 per cent of that margin.