Chile is taking a major step in the global clean energy transition. The new public-private company, NovaAndino Litio SpA, brings together Codelco and SQM to manage all aspects of lithium production in the vast Salar de Atacama until 2060. This bold move not only boosts Chile's leadership in a key global market but also sets a new standard for transparent and sustainable resource management, crucial for powering electric vehicles and renewable energy systems worldwide.

This partnership, formed after extensive reviews and Indigenous consultations, merges operational expertise with strategic state control agreement merges. It ensures that current operations run smoothly while preparing for long-term growth and stability. Additionally, Chile's control over another vital lithium reserve in the Maricunga Salt Flat has been strengthened, showing a clear commitment to national oversight of critical minerals essential for a decarbonized future.

The timing couldn't be more important. As electric vehicles rapidly gain popularity, the demand for lithium is soaring. Chile already provides over a quarter of the world's lithium, primarily through brine extraction, which often has a lower carbon footprint than other mining methods. Experts predict battery demand in Chile alone could jump from 0.5 GWh in 2024 to 38 GWh by 2035, with lithium demand for vehicles surging from 44 tonnes to over 3,000 tonnes in the same period research from the International Council on Clean Transportation. This highlights the urgency of developing these resources responsibly.

Beyond just mining, this venture promises huge financial and economic benefits for Chile. Production capacity is set to increase, and revenues could reach nearly $9 billion by 2035. More importantly, Chile aims to move up the value chain by refining lithium into cathode materials and even manufacturing full battery packs. This could generate billions of dollars and create tens of thousands of skilled jobs, turning raw material export into a sophisticated industrial sector that supports the global shift to electrification.

However, growth must be responsible. The Atacama Desert is a delicate environment, making careful water use and environmental protection paramount. Ongoing consultation with Indigenous communities and local stakeholders is critical to ensure shared benefits and sustainable practices. Looking ahead, recycling will also play a crucial role in reducing environmental impact and keeping valuable materials within Chile's economy.

Ultimately, NovaAndino Litio marks a defining moment for Chile. By balancing national interests with global competitiveness and a strong focus on sustainability, Chile is positioning itself as a leader in the battery and clean energy revolution. This strategic partnership demonstrates confidence and direction, ensuring Chile is ready to power the next generation of batteries and help drive a cleaner, more sustainable future for everyone.