January 2026 marked the operational launch of "NovaAndino Litio," a historic public-private partnership between the Chilean state-owned mining corporation Codelco and private lithium giant SQM. This joint venture is the realization of President Gabriel Boric’s National Lithium Strategy, which seeks to assert state sovereignty over the country's vast lithium reserves while maintaining private sector efficiency. Following final regulatory clearance in the first week of January, the new entity assumed control of operations in the Salar de Atacama.
The legal framework of the deal is a pioneering model of "public-private resource governance." It resolves the "2030 cliff"—the date SQM’s original lease was set to expire—by extending extraction rights to 2060 in exchange for state control. Under the agreement, SQM will lead operations until 2030, ensuring technical continuity. From 2031 onwards, Codelco will take over general management with a majority equity stake. This structure balances the state's strategic interests with the need for technical expertise in the complex lithium brine extraction process.
Crucially, the January commencement followed the successful conclusion of indigenous consultations required under international law (ILO Convention 169). The JV agreement incorporates strict environmental obligations, including a mandate to reduce freshwater usage and implement new extraction technologies. This makes the Codelco-SQM deal a global test case for sustainable, state-led critical mineral development, securing Chile's position in the EV battery supply chain while addressing local community concerns.
Source: Benchmark