On May 21, 2025, global mining giant Rio Tinto announced a partnership with Chile's state-owned mining company, Codelco, to develop the Maricunga lithium project in northern Chile. This collaboration marks a significant foreign investment in Chile's lithium sector and aims to utilize innovative extraction technologies to meet the growing global demand for electric vehicle batteries.

Under the agreement, Rio Tinto will invest up to $900 million to acquire a 49.99% stake in the Maricunga project, with Codelco retaining a 50.01% majority share. The investment is structured in phases: an initial $350 million upon closing, $500 million following a final investment decision, and an additional $50 million contingent on achieving commercial production by 2030. Construction is expected to begin within three to five years, with production anticipated by 2030.

The Maricunga salt flat, located in northern Chile, is the country's second-largest lithium reserve, containing high-grade lithium brines. This project represents the first major lithium initiative outside the Atacama region in over 40 years. The partnership aligns with Chile's strategy to increase state control over lithium production while leveraging private investment and expertise.

The project plans to employ direct lithium extraction (DLE) technology, an environmentally friendly method that has yet to be proven at a commercial scale. DLE involves extracting lithium directly from brine without the need for large evaporation ponds, potentially reducing water usage and environmental impact. However, DLE remains unproven at a commercial scale, adding a layer of uncertainty to the project's success.

This partnership aligns with Chile's strategy to increase state control over lithium production while leveraging private investment and expertise. In 2023, Chile semi-nationalized its lithium industry, mandating that new lithium projects in strategic areas must be majority-owned by public enterprises. The collaboration with Rio Tinto provides both capital and expertise, positioning Chile advantageously in the global lithium market.

Lithium extraction in Chile has raised environmental and social concerns, particularly regarding water usage in arid regions. Traditional lithium mining methods have been criticized for exacerbating water scarcity, affecting local communities and ecosystems. The Maricunga project aims to address these concerns by implementing DLE technology, which could minimize water consumption and environmental impact. However, the effectiveness of DLE in preserving local water resources and ecosystems remains to be seen.

This partnership between Rio Tinto and Codelco represents a significant step in developing Chile's lithium resources, balancing state control with foreign investment, and addressing environmental concerns through innovative technology. The success of the Maricunga project could have far-reaching implications for the global lithium market and the future of sustainable mining practices.