Albemarle to see Chile lithium output rise 4.9% to 67,300t by 2026 with 51% state PPP requirement
Chile’s lithium metal production rose 10.1% to 64,100 tonnes in 2025 and is forecast to climb another 4.9% to 67,300 tonnes in 2026, driven by capacity expansions at the Salar de Atacama by SQM and Albemarle. A 2023 nationalisation policy will require Albemarle to hold no more than 49% in future lithium ventures under state-led public-private partnerships while existing contracts remain unchanged.
1. Production Trends
Chile’s lithium metal production rose by 10.1% to 64,100 tonnes in 2025, supported by ongoing expansions at Salar de Atacama operations run by SQM and Albemarle. Output is projected to climb another 4.9% to 67,300 tonnes in 2026 as capacity additions come online.
2. Nationalisation Policy Impact
In April 2023, Chile mandated creation of a state lithium company under Codelco with at least 51% ownership in all lithium ventures, requiring Albemarle to cap private ownership at 49% in future projects. Existing supply contracts held by Albemarle remain valid until expiry, but new developments must follow public-private partnership terms.
3. Regulatory and Partnership Outlook
The Mining Ministry introduced streamlined CEOL contracts in April 2025 for multiple salt flats, expanding potential extraction zones beyond Atacama. Meanwhile, a Codelco-SQM joint venture was formed in December 2025 to operate Salar de Atacama through 2060, highlighting the government's shift toward PPP models that could shape Albemarle's collaboration opportunities.