SANTIAGO (Reuters) -Chile’s competition regulator approved a deal between Codelco, the state-run copper giant, and SQM to form a joint venture to expand lithium production in the Atacama salt flats, Codelco said in a statement on Thursday.
The statement said the local FNE regulator’s approval joins decisions reached in the European Union, Brazil, Japan, South Korea and Saudi Arabia, but approval from China’s regulator is still pending.
“We’re really satisfied with the decision because it confirms that the tie-up is moving forward as planned,” Codelco chairman Maximo Pacheco said in a statement, adding that talks with local Indigenous groups are also progressing.
The statement said that authorization from Chile’s nuclear energy regulator CCHEN is still pending, but a full deal is expected to be finalized in the second half of the year.
The joint venture is a key part of President Gabriel Boric’s plan to boost state control over the lithium industry and expand production, but has faced pushback from legislators and lawsuits from China’s Tianqi, a major investor in SQM.
Despite that, the deal has continued to advance and Thursday’s decision cleared a hurdle that could’ve complicated the joint venture’s progress.
(Reporting by Fabian Cambero; Writing by Alexander Villegas; Editing by Kylie Madry)
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