Codelco/SQM lithium JV receives final green light from Chinese SAMR

Compass Lexecon assisted Chile’s state-run copper company, Codelco, and SQM, one of the leading lithium worldwide producers, during reviews by the Chilean competition authority FNE and China’s SAMR regarding the Parties’ plan to form a JV for lithium production in the Atacama salt flat in Chile. The lithium JV received conditional clearance in Chile in April, while the Chinese SAMR gave final green light on 10 November 2025.

Situation

Chile’s state-run copper giant, Corporación Nacional del Cobre de Chile (‘Codelco’), and lithium producer, Sociedad Química y Minera de Chile SA (‘SQM’), signed an agreement in May 2024 to form a Joint Venture for the mining, production and commercialization of minerals from the Atacama Salt Flat in Chile, primarily lithium hydroxide and lithium carbonate. The joint venture materialized in the context of Chile's National Lithium Strategy, which seeks to generate value through responsible mineral extraction, developing a sustainable industry with high environmental and social standards through public-private partnerships.

Our Role

Compass Lexecon teams in China and Latin America collaborated seamlessly to provide economic advice to the Parties and their external counsel during merger proceedings by the Chinese State Administration for Market Regulation (‘SAMR’) and the Chilean Fiscalía Nacional Económica (‘FNE’) in relation to the proposed transaction.

In the case of China, we assisted with the delineation of the relevant market for lithium products using qualitative information and quantitative techniques. We also conducted an analysis of the efficiencies due to arise from the JV, as well as its potential effects on supply stability in China’s lithium industry.

Outcome

Chile’s competition regulator greenlighted the deal in April 2025, after a Phase I review. The clearance was subject to commitments, which are primarily aimed at limiting the potential exchange of commercially sensitive information among competitors. Earlier on, the deal already received unconditional approvals from antitrust bodies in Brazil, South Korea, Japan, Saudi Arabia and the European Union.

On 10 November 2025, the Chinese regulator SAMR was the last one to give conditional approval, thereby clearing the final antitrust hurdle for the JV. The parties offered remedies to overcome SAMR’s concerns in the lithium carbonate market.

The Team

The Compass Lexecon team was led by Vanessa Zhang and Fernando Coloma Ríos with support of Cecilia Li, Richard Zhao, Rita Li, William Bian, Catalina Larraín, Francisco de la Lastra, Ignacio Frixone, and Bernardita Silva.

We worked with a team from Carey (representing Codelco) led by Jose Pardo and supported by Ismael Bahamonde and Pedro Burstein, and a team from Claro y Cia (representing SQM) including Jose Miguel Huerta, Juan Pablo Celis and Martín Fischer.

Additionally, in China we worked with a team from Linklaters Zhao Sheng (representing Codelco) led by Fay Zhou and Arthur Peng, and supported by Bowen Wang, and a team from Fangda Partners (representing SQM) led by Michael Han and Jin Wang, with assistance from Joy Wong and Derek Liu.