In what seems to be the final big M&A deal of 2025, a long-awaited partnership between Chilean state copper producer Codelco and lithium miner SQM was officially signed last week, resulting in the creation of a new entity named NovaAndino Litio SpA.
Azzet’s Mission Critical is a weekly column that lays out the ebbs and flows around critical minerals supply chains - from pricing, production, refinement and mergers & acquisitions, to manufacturing and consumer products.
The landmark M&A creates a new state-backed global critical minerals powerhouse, as the deal effectively hands majority control of the Salar de Atacama to the Chilean state via Codelco.
In return for ceding control, SQM has secured its operational rights in the region until 2060, extending its tenure well beyond the previous expiration dates.
Codelco remains in a tight race with mining heavyweight BHP (ASX: BHP) as the world's biggest producer of the red metal, churning out ~1.33 million tonnes (mt) of fine copper in 2024 and on track to deliver the same this year.
SQM is no slouch either, having delivered record lithium production volumes of roughly 210,000t of lithium carbonate equivalent (LCE) over the same period, with similar guidance for 2025.
Beyond the headline Atacama deal, SQM retains a massive operational footprint across the Pacific.
The miner holds a 50% stake in Western Australia's operating Mt Holland lithium mine with Wesfarmers and is developing the world-class Andover project alongside Gina Rinehart's Hancock Prospecting.
Back on home soil, they also maintain full control of their 'caliche' operations - vast surface mines at Nueva Victoria and María Elena that make SQM the world's largest producer of iodine and nitrates.
Key Deal Terms:
- Corporate Structure: The new entity was formed through the merger of Codelco’s Minera Tarar SpA and SQM Salar SpA.
- Operational Control: The Chilean state will now oversee exploration, production, and sales strategies.
- Financial Implications: SQM has transferred its mining concessions in the Salar de Maricunga to Codelco, and both companies have stated the deal will have a "positive and material impact" on Codelco’s 2025 financial results.
This partnership aligns with President Gabriel Boric’s broader strategy to increase state involvement in the battery metals sector.
Antimony Resolution
Developments in the U.S. critical minerals sector also emerged over the Christnas break, with mining junior Resolution Minerals (ASX: RML) receiving the green light to commence drilling at its Horse Heaven project in Idaho.
The company is targeting antimony, a mineral that has seen increased focus due to its applications in the defence sector - particularly for ammunition and flame retardants.
Supply chains for antimony have tightened recently following export restrictions implemented by major global producers.
Horse Haven is right next door to Perpetua Resources (NASDAQ: PPTA) and its Stibnite Gold project, which has received significant funding from the U.S. Department of Defence.
Another Aussie junior, Red Mountain Mining (ASX: RMX), is also active in the region, expanding its footprint in the Yellow Pine district.
Rare earths export licenses
Despite diplomatic discussions in October regarding trade flows, U.S. buyers reportedly continue to face administrative hurdles with the granting of their rare earths export licenses.
European firms are reportedly securing longer-term export licences, whereas U.S. companies are largely restricted to short-term permits and face processing delays.
This selective licensing by starving U.S. defence manufacturers of consistent heavy rare earth supplies maintains pressure on the U.S. supply chain, while allowing trade with Europe to continue more freely.
