China approves SQM-Codelco Chile lithium partnership

[Lithium abstract concept]
Olemedia/E+ via Getty Images

SQM (SQM [https://seekingalpha.com/symbol/SQM]) +6.4% in Monday's trading after China's market regulator said it granted conditional approval [https://www.bloomberg.com/news/articles/2025-11-10/china-conditionally-approves-lithium-tie-up-between-sqm-codelco?srnd=next-china] for a lithium joint venture between the company and Chile's state-run copper giant Codelco, paving the way for the project to go into effect.

China's approval was the last major remaining hurdle for the companies to close a deal, first announced nearly two years ago, to produce lithium in Chile's Atacama salt flat as part of a government push to widen state control and expand output of lithium.

In the long-awaited ruling, China's State Administration for Market Regulation said the JV must honor existing commercial commitments and continue supplying Chinese customers on a "fair, reasonable and non-discriminatory" basis.

The agreement required multiple government regulators to sign off - including the European Union, Brazil, Japan, South Korea and Saudi Arabia - because the companies operate in a global market.

In a separate statement, Codelco said the partnership can take effect following approval from Chile's comptroller's office, which is widely seen as a formality.

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