SQM Signals Codelco Lithium Deal Safe From Chilean Election Risk

Chile’s SQMsays a lithium tie-up with state-owned Codelco is on track to be finalized well before the country’s next government takes power, easing concerns that the landmark deal could be upended.

“We foresee full approval of the transaction in the next two months,” Ricardo Ramos, chief executive officer of the world’s top lithium producer by market value, told analysts on an earnings call Wednesday.

An arrangement that would see SQM relinquish a majority stake in its prized Atacama assets to Codelco in exchange for three more decades of operations has come under mounting pressure. Leading candidates in Chile’s ...