In Depth: Chinese Lithium Giant’s Chile Headache Telling of Growing Global Resource Protectionism

Chile's new deal with local miner SQM will give it greater control over the country’s largest reserve of the key EV battery material, but will likely dilute shareholder Tianqi Lithium's future profits

The Chilean government’s move to take greater control over the country’s largest lithium reserve in a deal with local giant SQM has put its Chinese shareholder Tianqi Lithium in a bind, and comes as developing nations around the world take a greater interest in their mineral resources needed for a green transition.

Since the partnership with state copper miner Corporación Nacional del Cobre de Chile (Codelco) was announced in December, Tianqi Lithium Corp. has repeatedly called for Sociedad Quimica y Minera de Chile SA (SQM) to hold extraordinary shareholder meetings “to obtain more open, transparent and sufficient information” and to put the deal to a shareholder vote, according to a filing with the Hong Kong Stock Exchange on Monday.