Chile’s Two Mining Giants Plan Lithium JV to Boost Output by 70%

Chilean chemical and mining company SQM and state-owned copper giant Codelco are advancing expansion plans for their lithium joint venture, Novandino, aiming to increase annual production capacity from the current level of approximately 270,000 metric tons to as high as 470,000 metric tons—an increase of over 70%. The expansion, part of a broader $3 billion business transformation initiative, has already submitted its environmental impact assessment. The additional capacity is intended to meet long-term lithium demand driven by electric vehicles and grid-scale energy storage batteries. Under the current production framework, output will first be gradually ramped up to around 300,000 metric tons, followed by a seven-year transition period to shift toward an integrated production system incorporating new technologies such as direct lithium extraction. Although no specific timeline for full ramp-up has been disclosed, the new capacity is expected to take several years to fully materialize. The expansion comes as the global lithium market recovers from a period of oversupply, potentially putting pressure on higher-cost competitors.