SANTIAGO, July 24 (Reuters) - Chile's lower house of

Congress approved a resolution asking President Gabriel Boric to

annul an agreement between state copper company Codelco and

Chilean miner SQM that would give Codelco a prominent

role in the lithium industry.

The motion, passed late on Tuesday, was led by the Party for

Democracy (PPD), part of the ruling coalition, and approved with

41 votes in favor, 15 against and 10 abstentions.

The partnership between Codelco and SQM is a major component

of Boric's plan to boost the state role in Chile's production of

lithium, a metal used in electric vehicle batteries.

The government-mandated deal would extend SQM's contract to

extract lithium in the prized Atacama salt flat through 2060,

while giving Codelco a more than 50% stake in the project.

The tie-up sparked criticism from some lawmakers and

industry experts, who said the SQM contract in the Salar de

Atacama, set to expire in 2030, should have been opened to a

bidding process.

The resolution signed by lawmakers calls for canceling the

deal so that the process can "be done through a national and

international public tender and not in a direct deal."

The Mining Ministry and Codelco did not immediately respond

to requests for comment. Boric has been supportive of the

partnership, which the companies aim to finalize early next

year.

Codelco Chairman Maximo Pacheco has repeatedly defended the

joint venture, saying the direct deal with SQM ensures a

consistent flow of funds to the Chilean state, with the miner

turning over 70% of its operating margin through 2030, and 85%

through 2060.

"There are clear advantages that lead to the conclusion that

the direct negotiation met its goals," he told Senate lawmakers

in a hearing last month.

Chile is the world's second-biggest producer of lithium,

with output from SQM and Albemarle.