09:46 AM EDT, 05/31/2024 (MT Newswires) -- (Updates throughout with further details.)

Chilean state-owned Codelco signed a partnership with Sociedad Quimica y Minera de Chile ( SQM ) that gives the copper behemoth a majority stake in SQM's Chilean brine assets, according to a statement Friday.

Under the deal, the partnership between SQM and Codelco will develop mining projects to produce lithium, potassium and other products from assets of the Chilean Production Development Corp., or Corfo, in the Salar de Atacama as well as marketing activities.

Also, the joint venture and Corfo will sign contracts to increase the production quota of lithium from the Salar de Atacama between 2025 and 2030 and will get the rights to produce lithium from the Salar de Atacama between 2031 and 2060, the statement said.

The creation of the partnership is still subject to government approval in Chile and other countries, as well as other conditions, according to the statement.

Closing will be no earlier than Jan. 1, 2025, the statement said, adding the companies expect the conditions precedent of the agreement to be met during H1 2025.

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