Codelco, Chile’s state-owned copper company, will name its partner for the Maricunga lithium project before the end of June. The announcement comes as the government continues to advance its broader policy of asserting greater state control over lithium while keeping the door open for private investment. At a recent industry conference, Codelco chairman Máximo Pacheco confirmed that the company has received multiple binding offers and has narrowed down the list of candidates. The chosen company will join Codelco in developing the lithium project at the Maricunga salt flat, the country’s second-largest in terms of lithium reserves.
According to Pacheco, the selection process is in its final stages. Discussions with shortlisted candidates are ongoing, and the company expects to formalize the joint venture agreement during the second half of the year. The upcoming negotiations will include contract terms, specific conditions of the partnership, and obtaining any necessary regulatory approvals in Chile and abroad. The project, named Paloma, is projected to begin construction in early 2027. Codelco aims to start lithium production at the site in 2030. This timeline aligns with Chile’s national strategy, which seeks to increase lithium output while ensuring that the state maintains control over strategic assets.
The development at Maricunga falls under President Gabriel Boric’s policy requiring majority state participation in lithium projects located on designated strategic salt flats, such as Atacama and Maricunga. This policy has effectively limited private firms’ ability to operate independently in these areas, pushing them to seek partnerships with state entities like Codelco or Enami.
Codelco formally entered the lithium sector earlier this year when it acquired Lithium Power International. That acquisition gave the state miner control of the Maricunga project and marked its first lithium asset inside Chile. The move also signaled Codelco’s growing interest in diversifying beyond copper into other critical battery metals, a trend mirrored by many major mining companies worldwide. Chile is currently the world’s second-largest lithium producer, behind Australia. With demand for lithium projected to climb over the next decade, Chile has opened up over 20 salt flats to private investment. The government wants to increase national lithium production by 70 percent in the next ten years. The Maricunga project will play a key role in meeting that target. The salt flat sits high in the Andes and is one of the most promising undeveloped lithium areas in Chile. However, its development has faced years of delays due to permitting, environmental concerns, and shifting policy. With Codelco now in control and a new partner on the horizon, the project appears to be moving toward active development.
Once the joint venture is finalized, the focus will shift to engineering and design phases, followed by environmental impact assessments and infrastructure planning. Final investment decisions will depend on the outcome of these stages and the ability to secure both domestic and international approvals. The decision on a partner is expected to set the tone for future state-private lithium collaborations under Chile’s current framework. While private companies remain interested in Chile’s rich lithium resources, the requirement for state majority ownership has narrowed the field to those willing to operate under the government’s terms.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
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