Chile’s government indicated that SQM and Codelco will proceed with the signing of a binding lithium partnership by Friday’s self-imposed deadline even as the deal faces mounting headwinds.
A definitive deal would clear the way for the new public-private partnership to ramp up production from less than 200,000 metric tons toward 300,000 tons, thereby giving battery makers greater assurances on future supplies of a key raw material. Indigenous groups in the area have also criticized the way Codelco and SQM communicated their plans.
Their trip comes at a time of increased optimism on the economy, with domestic growth estimates rising on stronger consumption and higher prices of copper, which is Chile’s top export. At the same time, they are seeking to address concerns over topics including the government’s reform proposals. One of the main messages that Chilean officials are bringing to investors is that the domestic economy has been stabilized, Marcel said.