Exclusive: Chile’s Codelco Aims for 2030 Production at Maricunga Lithium Site, Document Reveals

By Daina Beth Solomon

SANTIAGO (Reuters) – Rothschild & Co has officially begun evaluating candidates to partner with Chile’s state-run miner Codelco on a significant new lithium project set to commence production in 2030, as indicated by documents reviewed by Reuters.

A four-page "investment highlight" document from Codelco and Rothschild, dated June 2024, along with an accompanying memo, provides fresh insights into Codelco’s plans for the site, now referred to as "Project Paloma."

Codelco intends to initiate construction in early 2027, targeting production start-up by early 2030. The first phase will focus on producing 20,000 metric tons of lithium carbonate equivalent (LCE) annually through evaporation ponds, with an initial capital expenditure of $1.2 billion.

A subsequent phase aims to produce 30,000 metric tons of LCE annually using direct lithium extraction (DLE) technology, with an initial capital cost of $1.1 billion. The potential application of DLE, which has not yet been successfully implemented at a commercial level, is under consideration for 2033 according to the documents.

Codelco announced it had engaged Rothschild to spearhead the search for a partner and expressed a desire to complete this process by the first quarter of next year. However, it did not reveal whether this effort had officially begun or how the bank would seek interest in the project.

The investment document states, "Rothschild & Co is currently qualifying participants in the process and is inviting select parties to review the information contained herein." It highlights the project as a "unique opportunity to partner with Codelco in developing Chile’s next world-class lithium project."

Chile ranks as the second-largest lithium producer globally, with output stemming from companies like SQM and Albemarle, essential suppliers of the battery metal for electric vehicles.

The government has assigned Codelco with the responsibility to enhance its role in lithium production and recently reached a significant milestone, announcing final plans for a collaborative effort with SQM in the Salar de Atacama spanning from 2025 to 2060.

The Maricunga project represents a notable new initiative for Codelco as it embarks on lithium production from the ground up. Despite Chilean President Gabriel Boric’s pledge last year to mandate the use of DLE technology, Codelco’s plans for a decade of traditional evaporation ponds at Maricunga suggest that this technology has yet to meet the production aspirations articulated by Boric and industry stakeholders.

At a press conference on Thursday concerning the SQM partnership, Codelco Chairman Maximo Pacheco stated that 30 to 40 companies, including international firms, have expressed interest in the Maricunga project.

Codelco is in search of a partner with financial resources, experience in collaborative ventures, and expertise in lithium production, though specific selection criteria have not been disclosed. Pacheco remarked, "We’ve designed a selection system to be extraordinarily open and flexible. We’re going to incorporate all the elements into an equation, leaving it up to the interested parties to make proposals."