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The agency concludes that the transaction would not pose competition issues in the European market. The objective of the partnership is to increase the volume of mineral extraction. The joint venture created by the Chilean National Copper Corporation (Codelco) and the Chilean Chemical and Mining Society (SQM) for the production of lithium in the Salar de Atacama has received approval from the European Commission. The European Union (EU) body has notified that the joint venture would not raise competition concerns, given the companies limited market positions. EU regulations stipulate that any transaction that could have a significant impact on the European market must be assessed and approved by the European Commission, regardless of the origin of the companies involved or where their activities are carried out. Its important to note that, in addition to approval from the European Commission, the alliance between Codelco and SQM also requires authorization from other regulatory bodies, such as the National Economic Prosecutors Office (FNE) in Chile and competition authorities in China, to ensure that the transaction complies with competition regulations in all relevant markets. The framework for this information dates back to February of last year , when the Chilean Production Development Corporation (Corfo) announced the launch of the R&D Challenges for Sustainable Productive Development initiative, with projects related to the development of the lithium industry, sustainable mining, energy transition, and digital transformation. At that time, mention was made of financing of up to $30 million from resources committed by SQM Salar SA and Albemarle in contracts for the exploitation of lithium in Corfos mining properties in the Salar de Atacama. In May 2024, the Association Agreement between Codelco and SQM was announced, with the intention of exercising, under contract with Corfo, their exploitation rights until 2060 in the Salar de Atacama, one of the largest sources of lithium in the world. This partnership seeks to significantly increase production at the deposit, where SQM currently extracts more than 200,000 tons of lithium carbonate. |
