The lithium production from the joint venture between Sociedad Quimica Y Minera De Chile SA (SQM) and Codelco last year slightly surpassed earlier projections, as the global supply surplus gradually eases. The joint venture, NovaAndino Litio SpA, produced 233,000 metric tons of lithium carbonate equivalent in 2025. This output is higher than the 2024 level and also slightly above the "close to 230,000 tons" guidance provided by SQM in November of last year.

Codelco holds a controlling stake in the NovaAndino lithium assets, while SQM is responsible for operations at the vast Atacama Salt Flat in northern Chile. NovaAndino possesses the world's largest source of lithium from salt lake brines. Betting on its low-cost advantages and optimistic prospects for battery demand, the company is expanding its capacity with the goal of increasing production by approximately 30% in the coming years. NovaAndino's CEO, Carlos Díaz, stated last month that annual production will be gradually increased to 300,000 tons by the end of this decade.

The joint venture aims to capitalize on the opportunity presented by double-digit growth in global lithium consumption. With increasing demand for large-scale energy storage batteries coupled with electric vehicle demand, lithium consumption is expected to continue expanding. This production expansion may put pressure on higher-cost competitors. The Atacama project utilizes an evaporation extraction method, which consumes less water, chemicals, and energy compared to the hard-rock mining method prevalent in Australia.

NovaAndino is preparing to submit plans to regulators to introduce new technologies, including direct lithium extraction, to further boost production. Meanwhile, NovaAndino's Chairman, Máximo Pacheco, stated that the lithium cooperation project between Codelco and Rio Tinto Group in Maricunga is still awaiting antitrust approval before a shareholder agreement can be signed. He also mentioned that Codelco produced 1.33 million tons of copper from its Chilean mines last year, with capital expenditures reaching a record $5.28 billion. He added that, due to scale and complexity, regulatory oversight of Codelco's El Teniente underground copper mine—where a fatal collapse occurred last July—will be incorporated into the company's executive committee, noting that this process design will be supported by an independent consulting firm.