Codelco partners with Rio Tinto to extract lithium from Maricunga salt flat, investing $900M for a 49.99% stake. Chile, the second-largest lithium producer, is expanding its production strategy and diversifying its resources. The project aims to be finalized by March 2026.
In a significant move for the lithium market, Chile’s state-owned copper company Codelco announced a partnership with Rio Tinto on Monday. The collaboration aims to extract lithium from the Maricunga salt flat, notable for housing the world’s second-largest lithium deposits. The surge in demand for lithium, a crucial component in electric vehicles and smartphones, has sparked a race among mining firms to secure their share of the resource.
Chile, alongside Argentina and Bolivia, forms the Lithium Triangle, a region that contains approximately 60% of the world’s lithium reserves, as reported by the US Geological Survey. Maricunga is particularly noteworthy, being second only to the Atacama salt flat in lithium brine concentration. This partnership will not only bolster Chile’s lithium production but will also align with efforts to diversify the country’s mining output.
As part of the deal, Rio Tinto will invest $900 million to acquire a 49.99% stake in the joint venture, specifically named Salar Maricunga SpA. In contrast, Codelco will maintain control with a 50.01% share. This investment marks Rio Tinto’s intensified focus on lithium, having already invested in projects across Serbia and Argentina to expand its portfolio in this growing sector.
Chile currently ranks as the world’s second-largest lithium producer, trailing only Australia. Presently, all of Chile’s lithium production comes from the Atacama salt flat. Chilean President Gabriel Boric has been proactive, initiating a strategy in 2023 to enhance production through public-private partnerships aimed at developing additional lithium sources.
Codelco’s chairman, Maximo Pacheco, emphasized that the Maricunga project is part of a broader diversification strategy for the company. With Rio Tinto being the world’s second-largest mining company, the partnership aims to leverage both companies’ expertise and resources to maximize lithium output and contribute to global supply.
This venture is expected to be finalized by March 2026. As the race for lithium heats up, the collaboration between Codelco and Rio Tinto could reshape the landscape of lithium mining not just in Chile but also worldwide, further linking these resource-rich countries together in the burgeoning energy transition.
The partnership between Codelco and Rio Tinto could significantly enhance lithium extraction in Chile, vital for the electric vehicle and tech industries. With Rio Tinto’s $900 million investment, the venture marks a strategic expansion into lithium mining for both companies. The project aligns with Chile’s goals to diversify its mining sector and increase lithium output, especially from the Maricunga salt flat, which is rich in resources. As the timeline for this partnership extends to 2026, it signals a strong commitment to secure a vital resource in an electrifying future.
Original Source: www.tiogapublishing.com
