SQM Will Spend US$3 Billion by 2028, Most of It on One Salt Flat
SQM told its second-quarter call it expects about US$3 billion of capital spending across 2026 to 2028, centred on the Salar Futuro project with Codelco. The post SQM Will Spend US$3 Billion by 2028, Most of It on One Salt Flat appeared first on The Rio Times .
SQM, the Chilean lithium producer, announced a record quarterly profit and is planning to spend nearly US$3 billion by 2028 on a single project, Salar Futuro. The redevelopment of SQM's Salar de Atacama operations, in partnership with the Chilean state, Codelco, aims to raise production while reducing the environmental footprint.
The $3 billion investment is spread over a seven-year period, and the majority of it is directed towards Salar Futuro. The deal extends SQM's operating horizon beyond the expiry of its concessions and secures a share of the revenue for Codelco without nationalizing the operating business. This agreement highlights the Chilean approach to lithium production, which differs from Argentina and Bolivia's strategies.
The company's decision to invest in Salar Futuro is a strategic move, as the region holds the majority of the world's identified lithium reserves. However, the success of this plan heavily depends on lithium prices, which have been weak for the past two years. If prices do not recover before the spending ends, the economic viability of the region's lithium plans may be affected.
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