Rio Tinto and Codelco have established a joint venture for a major lithium project in Chile, reflecting significant M&A activity across the Andean region's diverse sectors.

Target Information

In May, a series of significant merger and acquisition (M&A) transactions took place across the Andean region, highlighting a diverse range of sectors that attracted both strategic and financial investors. Notably, Rio Tinto, a prominent global mining group, partnered with Chile’s state-owned copper company Codelco to create a joint venture aimed at developing a major lithium project in the Salar de Maricunga, recognized for its exceptional lithium brine deposits. Under the agreement, Rio Tinto will acquire a 49.9% stake in Salar de Maricunga SpA, which oversees Codelco's mining licenses and concessions in the area.

The Salar de Maricunga project involves an investment of up to USD 900 million from Rio Tinto, with projected allocations for development and construction periods. Further enhancing Rio Tinto's position in the lithium sector, they were also selected as the preferred partner for the Salares Altoandinos lithium project, which highlights the strategic focus on consolidating their operations in South America.

Industry Overview in Chile

Chile's economy is significantly influenced by its status as one of the largest producers of lithium, primarily used in electric vehicle batteries and renewable energy technologies. As global demand for lithium continues to rise, the country is poise