Tianqi Lithium subsidiary’s Chile lawsuit dismissed over Atacama joint venture

Inversiones TLC SpA, a wholly-owned subsidiary of Tianqi Lithium Corporation, received a ruling on November 12, 2025, from the Santiago Court of Appeals in Chile. The court dismissed Tianqi Chile’s lawsuit challenging a joint venture agreement between Sociedad Química y Minera de Chile S.A. (SQM) and Corporación Nacional del Cobre de Chile (Codelco) for the Atacama Salt Flat. The lawsuit, filed on July 26, 2024, sought to overturn a decision by Chile’s financial market commission (CMF) that deemed the SQM-Codelco partnership suitable for board approval rather than a shareholder vote.

Tianqi Lithium stated that this ruling is not a final judgment and the company will evaluate further actions, potentially including an appeal, to safeguard shareholder interests. The company noted that the dismissal does not alter its previous impairment testing assumptions for its long-term equity investment in SQM, and therefore, no immediate impact on current period profits is expected.

The core dispute revolves around the "Partnership Agreement" signed on May 31, 2024, between SQM and Codelco, establishing a joint venture for lithium and potassium production from 2025 to 2060. The agreement outlines that Codelco’s subsidiary will integrate with SQM’s subsidiary to form a joint company. Tianqi Lithium, as a significant SQM shareholder, has expressed concerns that the deal, made without a general shareholder meeting, could dilute its voting rights and investment returns.