Chilean lithium miner SQM is currently engaged in a dispute with its Chinese partner over a deal with Codelco, Chile's state-owned copper mining company.
The conflict arises from SQM's agreement with Codelco to explore for lithium in Chile's Maricunga salt flat. This deal has caused tension between SQM and its Chinese partner, Tianqi Lithium, as Tianqi holds a 24% stake in SQM.
Tianqi has expressed concerns over the Codelco deal, citing potential conflicts of interest and questioning SQM's decision-making process. SQM, on the other hand, maintains that the agreement with Codelco is in compliance with its partnership agreement with Tianqi.
The disagreement between SQM and Tianqi has escalated to the point where Tianqi has sought arbitration to resolve the issue. This move indicates the seriousness of the conflict and the need for a formal resolution process.
Lithium is a crucial component in the production of batteries for electric vehicles and renewable energy storage systems. As demand for lithium continues to rise, securing reliable sources of the mineral has become a top priority for companies in the industry.
The outcome of the dispute between SQM and Tianqi could have significant implications for the global lithium market, as it may impact the supply chain and pricing dynamics of the mineral.
Both SQM and Tianqi play key roles in the lithium market, with SQM being one of the world's largest lithium producers and Tianqi being a major player in the Chinese lithium industry. The resolution of their conflict will be closely watched by industry stakeholders and investors alike.
