Codelco selects Rio Tinto as a partner for the development of a lithium project in the Maricunga Salt Flats

In economic terms, the agreement establishes that Rio Tinto will contribute up to USD 900,000,000 to the project.

Following a process initiated in 2024 and following unanimous approval by its board of directors, Codelco signed a Partnership Agreement with Rio Tinto that establishes the terms and conditions for the creation of a joint venture to develop a lithium project in the Maricunga Salt Flats.

“This process, which has been extraordinarily competitive, demonstrates the strategic value of lithium as a critical mineral, Codelco's prestige as a partner, and the attractiveness of our country as an investment location. The Codelco team has done a tremendous amount of work, involving various activities, such as visits to the Maricunga Salt Flats, presentations to interested parties, and ongoing responses to requests for information and questions,” emphasized Máximo Pacheco, Chairman of the Board of Codelco.

This strategic partner was selected with the advice of the investment bank Rothschild & Co., following a rigorous process in which four companies submitted binding offers. On legal matters, the team, led by Vice President Macarena Vargas, was advised by the firms Carey y Cía. (Chile) and Sullivan & Cromwell LLP (USA). Among the criteria used to select Rio Tinto were the value offered, its solid financial position, and its experience and credentials in the development of lithium brine projects and associated technology, among others.

The partnership with Rio Tinto—the world's second-largest mining conglomerate, present in 35 countries, including Chile, where it is a shareholder in Escondida Mining and a partner with Codelco in the Nuevo Cobre exploration project—will become effective once all necessary legal requirements are met, including consultations with regulatory bodies in Chile and abroad, yet to be defined, and the shareholders' agreement and the formation of the joint venture are completed. The closing of the transaction is expected in the first quarter of 2026.

Jakob Stausholm, Chief Executive Officer of Rio Tinto, said, “We are honored to be chosen as a partner with Codelco to develop a world-class project using Direct Lithium Extraction technology at the Salar de Maricunga, leveraging our expertise as a leading lithium producer for the global market. The development of this significant lithium resource will generate further growth and added value for our portfolio of critical minerals, essential for the energy transition.”

The Anglo-Australian mining company will acquire a 49.99% stake in Salar de Maricunga SpA, giving Codelco a 50.01% stake, in compliance with the National Lithium Strategy and the conditions established in the CEOL (Lithium Liability Company) submitted by the Ministry of Mining. Together, Codelco and Rio Tinto will define the roadmap for development at Maricunga, which will utilize new, competitive and sustainable technologies.

"This project continues our lithium diversification strategy, which is essential for the energy transition, with a world-class partner like Rio Tinto and which represented the most attractive option for Codelco and the country. We are happy and proud to strengthen our partnership with a company of Rio Tinto's prestige, and we warmly welcome it as a partner in this important project for Chile," said Pacheco.

Up to USD 900 million investment

In financial terms, the agreement stipulates that Rio Tinto will contribute up to USD 900 million to the project, consisting of USD 350 million upon closing; USD 500 million upon final investment decision ; and USD 50 million if the project generates first marketable lithium carbonate equivalent production by December 31, 2030.

Regarding the new company, the parties agreed, among other matters, on the content of the shareholders' agreement that will guide shareholder relations, with a board composed of five members, three of whom will be appointed by Codelco, including the chairman, and two by Rio Tinto.

The Maricunga Salt Flat has the second-highest lithium concentration among salt flats in the world after the Atacama Salt Flat, and the joint venture will capitalize on the progress made in previous explorations, along with the engineering and environmental permitting already in place for the salt flat.

Codelco carried out its first exploration campaign in the area between 2022 and 2023, with the aim of constructing hydrogeological models and estimating mineral resources. In parallel, and with the aim of consolidating its position in the salar, in 2024 it acquired Lithium Power International (LPI), owner of Minera Salar Blanco SA.

"This leaves us in an unbeatable position to develop a new lithium project in Chile, which will involve innovative technology, full compliance with environmental standards, and ongoing community engagement, as we have done from the beginning, to protect the salt flat ecosystem," Pacheco added.