A Milestone for Chile’s Lithium Strategy
Novandino Litio, the strategic partnership between Chilean state copper giant Codelco and SQM, is moving forward with its flagship initiative, 'Salar Futuro.' According to Codelco Chairman Máximo Pacheco, the joint venture is prepared to submit the project’s Environmental Impact Assessment (EIA) to the Environmental Assessment Service (SEIA) this coming June.
The project represents a critical pillar in the company’s operational roadmap, designed to significantly increase lithium recovery rates from brine extracted at the Salar de Atacama and processed at the Planta del Carmen facility. By optimizing extraction techniques, the company aims to reach an annual production capacity of between 280,000 and 300,000 tons of Lithium Carbonate Equivalent (LCE).
Escalating Investment Figures
The financial scale of the Salar Futuro project has evolved significantly since its inception. Initially presented by SQM Salar in 2022, the project carried an estimated capital expenditure (capex) of $1.5 billion. By September 2025, that figure had been revised upward to over $2 billion. More recent analysis, including studies conducted by academics at the University of Chile—which served as a benchmark for Codelco’s partnership selection—suggests that the total investment required for the project could range between $3 billion and $3.5 billion.
This capital infusion is intended to modernize operations and transition the site toward a more sustainable extraction model, a key requirement for maintaining long-term competitiveness in the global electric vehicle and battery supply chain.
Leadership Transition at Codelco
The announcement comes at a pivotal time for Codelco, as Máximo Pacheco prepares to step down from his role as chairman on May 25, 2026. Addressing questions regarding his tenure, Pacheco confirmed he would fulfill his mandate until the final moment, emphasizing that he has no plans to exit early.
Reflecting on the challenges ahead for his successor, Pacheco noted that the role requires "patience, perseverance, and a focus on the long term." Beyond the lithium joint venture, Pacheco offered an optimistic outlook on Codelco’s core copper business, stating that the company has successfully stabilized its production decline. He projected that output for 2026 will surpass 2025 levels, signaling a recovery phase for the state-owned miner after a period of operational difficulty.
The Path Forward
With five board meetings already conducted to steer the development of the Novandino Litio entity, the focus remains squarely on the successful submission of the EIA. The project is seen not only as a technical upgrade for lithium extraction but as a cornerstone of the public-private cooperation model that the Chilean government is championing to maximize the value of its mineral resources. As June approaches, industry analysts will be watching closely to see how the environmental regulatory body evaluates the ambitious scope of Salar Futuro.
