Chilean mining giants SQM and Codelco are planning a significant expansion of their lithium partnership, aiming to increase annual production by over 70%. The Novandino venture is targeting up to 470,000 metric tons annually, a substantial jump from this year’s guidance of around 270,000 tons. This move signals a long-term bet on sustained global demand for batteries.

The proposed output hike is part of a $3 billion overhaul of the venture's operations, detailed in an environmental impact study. While the timeline for reaching the new production target remains unspecified, the scale of the investment underscores the strategic importance of lithium for both companies and the Chilean economy. The partnership operates on the Atacama salt flat.

This ambitious expansion comes as global battery demand, driven by electric vehicles and energy storage, continues to surge. The move by SQM and Codelco, two of Chile's most prominent mining entities, positions them to capture a larger share of this growing market and solidify their roles as major lithium suppliers. The venture will now proceed with regulatory reviews for the proposed upgrades.