Dayna Beth Solomon and Alexander Villegas
SANTIAGO (Reuters) – China’s Tianqi Lithium Corp on Friday called on Chile’s SQM to hold a shareholder vote on its mooted lithium deal with state miner Codelco and criticized the lack of clarity in negotiations.
Tianqi owns about 20% of SQM, which is working out details of a joint venture with Codelco as part of a government mandate to tighten government control over the lithium industry.
“It is necessary that the agreement reached between SQM and Codelco be approved by shareholders,” the company said in a statement.
Chile is the world’s second-largest producer of the metal used in electric vehicle batteries, and SQM is the country’s largest producer.
SQM and Codelco this week extended the deal by two months, until the end of May. SQM, at a meeting with shareholders on Thursday, attributed the delay to the complexity of negotiations, including ongoing reviews.
He also confirmed the terms set out in a preliminary agreement in December, including Codelco’s plan to take a 50% plus one share stake once the partnership becomes effective in 2025.
Tianqi said many aspects of the deal were still unclear at the meeting.
“There are still a significant number of fundamental aspects of the agreement that have not been defined or clearly explained,” Tianqi said in a statement.
Tianqi called on shareholders, not just the board of directors, to also vote on the final deal to ensure transparency and full participation.
SQM did not immediately respond to a request for comment.
Tianqi bought its stake in SQM in 2018 for $4.1 billion, becoming the company’s second-largest shareholder amid concerns from regulators, competitors and consumer groups that the deal could give Tianqi a near-monopoly in the global lithium market.
Chile’s antitrust court ultimately approved the deal, but imposed conditions limiting Tianqi’s access to SQM’s business secrets.