Tianqi Lithium subsidiary appeals court ruling in Chile over SQM operations

Tianqi Lithium Corporation's wholly-owned subsidiary, Inversiones TLC SpA (Tianqi Chile), filed an appeal with the Chilean Supreme Court on November 21, 2025. This challenges a Santiago Court of Appeals decision. Tianqi Chile is the plaintiff in this case, which currently has no specific monetary claims. As of the announcement date, the Chilean Supreme Court has not issued a new ruling, indicating no immediate impact on the company’s current or future earnings. The company advises investors to monitor future disclosures.

The dispute stems from a Memorandum of Understanding signed on December 27, 2023, between SQM, in which Tianqi Lithium holds a stake, and Corporacion Nacional del Cobre de Chile (Codelco). This agreement concerned Atacama Salt Lake operations from 2025 to 2060. Tianqi Chile subsequently requested Chile's Financial Market Commission (CMF) to compel SQM to call a special shareholders' meeting, citing concerns over a Partnership Agreement signed by SQM and Codelco on May 31, 2024. The CMF rejected Tianqi Chile's petition on June 18, 2024, stating the agreement did not require a special shareholders' meeting. Tianqi Chile's administrative appeal to the CMF was also rejected on July 15, 2024, leading to the lawsuit filed with the Chilean courts on July 26, 2024.

The Chilean court heard the case on May 14, 2025, and dismissed Tianqi Chile's claims on November 12, 2025. This ruling is not final, prompting the current appeal to the Supreme Court. The Partnership Agreement between SQM and Codelco, if effective, would establish a joint venture where Codelco gains majority ownership of SQM’s core lithium business in the Atacama Salt Lake from 2031. This could alter SQM's future earnings and dividends, potentially affecting Tianqi Lithium's investment returns.