Saudi-backed Almar Water seeks lithium partnership in Chile

SQM Lithium Production As Global Market Shows Signs of Life

Almar Water Solutions, part of Saudi Arabian group Abdul Latif Jameel, is looking to form a partnership with Chile’s state mining giant Codelco in its planned Maricunga lithium mining project, Almar‘s chief executive said on Tuesday.

The Spain-based firm, which focuses on water solutions for renewable energy production, wants to leverage its technology in the extraction of battery-metal lithium, a water-intensive process, CEO Carlos Cosin told Reuters.

Chile leads lithium market

Chile is the world’s second-largest lithium producer and the world’s dominant copper producer.

Lithium is needed in production of the batteries used in electric vehicles.

Water supply is a major challenge for the lithium industry, following persistent drought in the Andean nation.

“We have three things: financial capacity, local presence and access to the technology,” Cosin said. “We are not a company that is interested in selling lithium, it is not our business.”

Copper miner Codelco has hired investment bank Rothschild to find a partner for its Maricunga project after being tasked by the government to boost the state’s role in the lithium sector. Codelco hopes to select a partner in the first quarter next year.

Cosin said Almar, as part of a Saudi conglomerate, would be able to bring in another strong financial partner if included in a consortium to develop the Maricunga salt flat.

Its technology can be used in metal separation in the microelectronics industry, direct lithium extraction and battery recycling.