Codelco Partners with Rio Tinto for Maricunga Lithium Project

Chile's leading state miner, Codelco, announced a strategic partnership with global mining giant Rio Tinto for its Maricunga lithium project, advancing Chile's position as a crucial player in the global lithium market.

The collaboration marks a significant shift in Chile's lithium sector, traditionally dominated by local firm SQM and U.S.-based Albemarle. With a total projected investment of up to $900 million, Rio Tinto will acquire a 49.99% stake in the project, putting a spotlight on new opportunities in the electric vehicle battery industry.

Under the agreement, the investment includes a $350 million payment upon closing, $500 million after a final investment decision, and an additional $50 million if commercial production is achieved by 2030. The partnership's board will include three Codelco appointees and two from Rio Tinto, facilitating cooperative governance.

(With inputs from agencies.)