Chilean lithium mining giant plans to expand production by 70%! Novandino sets annual lithium production target as high as 470,000 tons

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Chilean mining companies SQM and Codelco are advancing the expansion of their large-scale lithium joint venture, betting this globally important lithium-producing region on the long-term growth of battery demand.

According to a $3 billion environmental impact study report on operational transformation, their joint venture Novandino has proposed setting its annual lithium production target at up to 470,000 tons, more than 70% higher than the company's guidance of about 270,000 tons for this year. Novandino did not disclose a timetable for reaching full production.

The backdrop of this expansion plan is the double-digit growth in global lithium consumption driven jointly by energy storage battery demand and the electric vehicle market. Analysts note that if the plan goes ahead, it will put pressure on high-cost competitors—especially as global oversupply gradually recedes.

However, market consultancy Benchmark Mineral Intelligence stated that the target of 470,000 tons is surprising, as the project was previously positioned mainly as an environmental upgrade rather than a significant capacity expansion.

Capacity expansion still requires years of groundwork

According to documents filed on Friday, Novandino plans to advance in stages. Under the current framework, output is expected to gradually climb to about 300,000 tons, then enter a seven-year transition period, during which new technologies such as direct lithium extraction (DLE) will be introduced to establish an integrated production system, ultimately aiming for the 470,000-ton target.

Benchmark Mineral Intelligence analyst Federico Gay pointed out that reaching this production level requires further research and engineering validation, adjustments to production quotas, and also depends on whether direct extraction technology can achieve the expected water consumption reduction. He stated:

"Achieving this capacity will certainly take years, and it is absolutely impossible within this decade."

The partnership between Codelco and SQM is a core initiative of the Chilean previous government's push for the nationalization of the lithium industry, designed to increase national control over lithium resources and expand supply from the world's highest-grade brine deposits.

Novandino's long-term expansion plan means this national strategic asset will play a more crucial role in the future global lithium market landscape.

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