The second largest lithium producer in the world said it intends to transfer its mining concessions in the Salar de Maricunga and the Salar de Atacama to the joint venture with Codelco, which will be called Minera Tarar.

The Chilean lithium producer SQM said on Thursday that it plans to transfer its lithium mining concessions in the north of the country to the joint venture it will form with the state copper company Codelco to exploit reserves of the mineral, considered strategic by the State.

SQM and Codelco announced at the end of December the creation of a public-private partnership to extract lithium in the coveted Salar de Atacama until 2060, an agreement that seeks to give Chile stability on the global stage of the energy transition.

In a statement after an extraordinary meeting with shareholders, the second largest lithium producer in the world said that it intends to transfer its mining concessions in the Salar de Maricunga and the Salar de Atacama - where it already operates - to the joint venture with Codelco, which will be will be called Minera Tarar.

Thursday's extraordinary meeting was held at the request of Chinese mining company Tianqi Lithium Corp, a major shareholder of SQM.

The parties had announced on Wednesday an extension of the deadline included in a memorandum of understanding to sign agreements on mining concessions until May 31, in view of the complexity of the ongoing talks. Initially, the deadline had been set for March 31.

Codelco, the largest copper producer in the world, was appointed by the Chilean Government to lead the strategy aimed at increasing state control in the production of lithium, a key mineral in the manufacture of electric car batteries.

"This agreement is based mainly on using the important synergies that occur when coordinating the efforts of both companies in the operation of the Salar de Atacama," said SQM general manager Ricardo Ramos in the statement released by the company.

The association with SQM will be structured through a common company with a majority participation of the Chilean State, 50% plus one share.

SQM told its shareholders that it plans to disseminate all information related to the economic value of the association with Codelco before the signing of the contracts.

SQM's contract with the state development agency Corfo to exploit lithium from the Salar de Atacama expired in 2030. SQM is one of the only two lithium producers in the South American country - along with the American company Albemarle - and the approaching expiration of its lease contract for state property made it the priority of the negotiations.