Codelco secures first lithium asset with Australian firm buy

Cecilia Jamasmie | January 23, 2024 | 

The Maricunga lithium project sits on its namesake salt flat, Chile’s second-largest in terms of reserves. (Image courtesy of Lithium Power International.)

Chilean state-owned copper miner Codelco, the world’s largest copper producer, has secured it first lithium asset in the home country after Australia’s Lithium Power International (ASX: LPI) shareholders approved the firm’s takeover.


The A$385 million ($254 million) acquisition of the Sydney-based miner hands Codelco the Maricunga lithium project, located on the namesake salt flat, which is Chile’s second largest salt-encrusted field in terms of reserves of the battery metal.

The Maricunga project, located within the so-called lithium triangle in northern Chile, is estimated to contain about 1.9 million tonnes of lithium carbonate equivalent (LCE).

The transaction, which now only needs the Federal Court of Australia’s backing, is expected to conclude on Feb. 23, Codelco said.

“With this purchase, Codelco moves forward with its mandate of becoming leaders in the production of critical minerals for the energy transition,” chairman Máximo Pacheco said in the statement.

Chile gave the copper giant a key role in the new public-private model for the sector, announced in April last year, which calls for public-private partnerships for future lithium projects.

The seamless nature of this deal contrasts with a recent string of failed Australian lithium juniors acquisitions. Local mining billionaires gatecrashed a series of deals in the latter half of 2023, including Albemarle’s (NYSE: ALB) A$6.6 billion attempt to buy Liontown Resources (ASX: LTR) and SQM’s bid for Azure Minerals (ASX: AZS).

Chile is already the world’s no. 2 producer of lithium after Australia and holds the world’s largest known deposits of the coveted battery metal.

Codelco entered in late December the first lithium business tie-up with SQM for the future development and production of the metal in the Atacama salt flat, the only area where lithium is currently extracted in Chile.

China’s CBC raises its ownership in lithium mining operations in Bolivia.

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The Chinese consortium CBC, including battery giant CATL, and Bolivia, inked a deal on Wednesday, strengthening their collaboration in one of the world’s largest lithium reserves.

As Bolivia aims to enhance its role in the battery production chain with China, President Luiz Arce mentioned that Bolivia could launch a new international tender this month. Arce emphasized the country’s desire to participate in the entire production chain, not just in mining.

This recent agreement builds upon a prior deal made with Bolivia’s state-owned lithium company in January 2023. In that agreement, CBC committed to investing over $1 billion to initiate the processing of Bolivian lithium, involving the installation of two industrial direct lithium extraction (DLE) plants.

The new agreement entails an additional investment of $90 million and expands CBC’s involvement in Bolivia’s growing lithium industry. Bolivia is home to the Uyuni salt flat, boasting one of the largest lithium reserves globally.

Karla Calderon, President of YLB, stated at the government palace in La Paz that the agreements include the development of a pilot plant with an initial production capacity of 2,500 metric tons per year. There are plans for a future industrial plant with a capacity of 25,000 metric tons per year, although no specific date for the expansion was provided.

CBC representative Qinghua Zhou highlighted the strategic significance of the pilot, stating that CBC would leverage its advanced technology and expertise to conduct pilot tests, positioning Bolivia as a vital global hub in the lithium battery industry chain.

Bolivia has also signed agreements with two other Chinese companies, CBC and Citic Guoan, along with a Russian company, Uranium One Group, to construct industrial facilities for lithium carbonate production. Additionally, an agreement has been inked with India’s Altmin to collaborate on the development of cathode materials technology for lithium batteries.