Chilean state-owned miner Codelco and lithium producer SQM have begun formal negotiations with Indigenous communities in the Atacama Desert, aiming to establish a shared governance model that reflects local perspectives in lithium development decisions.
Several media outlets report that the joint venture is working on a governance structure that includes input from the Atacama Indigenous group, the Likanantay. The companies emphasized that this would be an unprecedented move in Chile, aligned with international treaties on Indigenous rights.
Codelco and SQM signed a lithium development partnership in 2023 and launched a joint venture last year to extend operations in the Salar de Atacama, a vast salt flat rich in lithium. Amid growing concerns over environmental impact-particularly on water resources-both companies have accelerated efforts to include local communities in the decision-making process.
At the core of the talks is ensuring that Indigenous representatives hold real influence within the joint venture. Negotiations began last month and are expected to conclude by the end of the year.
The Atacama basin accounts for 25% of the global lithium supply. However, due to its extremely dry climate, water preservation is a major concern. Local communities have called for clear accountability over water use and environmental safeguards.
“Our communities must be part of the decision-making about what happens on our lands,” said Sergio Cubillos, a representative of the Indigenous group.
Yermin Vasquez, another Indigenous leader from the region, added, “We need a structure that allows regular dialogue on technical extraction methods, environmental impact mitigation, and water protection. After last year’s protests disrupted SQM’s logistics, companies now realize they need community support to move forward.”
Industry experts see the talks as a strategic step toward strengthening ESG (Environmental, Social, and Governance) standards. Global buyers are increasingly prioritizing ethically sourced and environmentally responsible raw materials.
