Zheng Quan Shi Bao Wang·2025-12-29 10:53Core Viewpoint - Tianqi Lithium's significant investment in SQM is influenced by the strategic partnership between SQM and Codelco, which has progressed but remains subject to legal challenges [1][2]. Group 1: Strategic Partnership Developments - SQM and Codelco have completed key advancements in their strategic partnership, with the joint venture named Nova Andino Litio SpA, although it is still bound by conditions from the Chilean Supreme Court [1]. - The partnership agreement signed on May 31, 2024, allows for the integration of Codelco's subsidiary into SQM, extending SQM's lithium extraction rights in the Atacama salt flat from 2030 to 2060, with plans to increase production by 300,000 tons of lithium carbonate equivalent (LCE) between 2025 and 2030 [1]. Group 2: Financial Implications - The strategic partnership's A and B class shares will take effect from January 1, 2025, impacting dividend distribution and core economic rights [2]. - The completion of the transaction will affect Tianqi Lithium's investment returns and dividends from its long-term equity stake in SQM, although the specific financial impact cannot be estimated until SQM's 2025 consolidated financial statements are available [2]. Group 3: Legal and Governance Concerns - Tianqi Lithium's subsidiary has raised objections to the partnership, leading to a series of legal proceedings, including an appeal to the Chilean Supreme Court after lower courts dismissed its claims [1]. - The partnership may lead to uncertainties regarding Tianqi Lithium's governance rights and the potential dilution of its influence over SQM, particularly after 2031 when SQM may lose control over its core lithium business [3].