A strategic partnership has been initiated in Chile between Corporación Nacional Del Cobre de Chile (Codelco) and Rio Tinto in an initiative to operate a high-grade lithium project within the region. As of May 10, 2025, both parties involved have signed a binding agreement, which is deemed to be the next step in this broader strategic partnership.
Image source: riotinto.com
The idea of this joint venture struck between the two firms first came into form back in 2022, where they signed an agreement for collaboration that has been made by focusing on their accumulated experience in designing, construction and operation of the underground mines.
Fast forward to 2023, both companies exchanged information with each other, like mutual interest, objectives, electrification of mining activities, supply of desalinated water and lastly the monitoring of tailing deposits.
Rio Tinto, the world's second largest metals and mining corporation, have agreed upon this joint venture in Salar de Maricunga, Chile because the region contains a large lithium resource base.
This resource base in the Atacama region is filled with rich potential, driving value in the long term by ensuring low-cost production as it is attributed with one of the world's highest average grades of lithium content.
With this agreement, both firms look forward to having reinforced their market position as one of the leading suppliers of materials required for the global energy transition. In this joint venture, Rio Tinto would acquire a 49.99 per cent interest in Salar de Maricunga.
Via this, Codelco shall hold its license and the mining concessions by further funding the development costs and studies required for the same.
Codelco would receive certain payments, which are included in the 49.99 per cent share cost, including USD 350 million funding to be provided for conducting the required studies and resource analysis that shall be incorporated throughout the project.
Additionally, the firm shall further invest USD 500 million towards the partner company after the decision to proceed with the project is made for construction.
However, both of the above-mentioned investments are subject to customary closing adjustments and a feasibility study, which is targeted to end before the decade. Apart from this, the firm shall also fund Codelco with USD 50 million, depending on the goal of delivering the first lithium by the end of 2030.
All the partners of both firms are to initiate further funding to meet the capital requirements as per their share of ownership within the joint venture. The transaction of these investments would be complete in the first quarter of 2026.
As stated by the Chief Executive of Rio Tinto, Jakob Stausholm, "We are honoured to be chosen as Codelco’s partner to deliver a world-class project using Direct Lithium Extraction technology in the Salar de Maricunga, leveraging our expertise as a leading producer of lithium for the global market. Developing this significant lithium resource will deliver further value-adding growth in our portfolio of critical minerals essential for the energy transition. Codelco is a strategic partner for Rio Tinto in Chile, with this agreement building on our copper joint ventures. We aim to bring significant investment and long-term benefits to the Atacama region as we advance Maricunga and Nuevo Cobre together, with a focus on responsible, sustainable development, including shared infrastructure and solutions to minimise water usage."
On the other hand, Maximo Pacheco, the Chairman of Codelco, stated, "This project continues our lithium diversification strategy, which is essential for the energy transition, with a world-class partner in Rio Tinto that represents the most attractive option for Codelco and the country. We are happy and proud to strengthen our partnership with a company of Rio Tinto's prestige, and we warmly welcome it as a partner in this important project for Chile."
The major focus of the joint venture would be upon engaging deeply with regional communities, improving the infrastructure, like roads and power and further applying technologies benefiting from extracting, processing and re-injection to the project. By initiating this via the project, both firms can maximise the recovery of the minerals as well as reduce the environmental footprint.
Responses
