According to Mining, Chile’s Sociedad Química y Minera de Chile (SQM), the world’s second-largest lithium producer, has officially secured regulatory approval from Namibian authorities to move forward with an earn-in agreement with Andrada Mining. This marks SQM’s first venture into Africa, a strategic move expected to accelerate lithium development on the continent.
Under the agreement, SQM has the option to acquire up to a 50% stake in Grace Simba Investments (GSI), a subsidiary of Andrada Mining that holds the Lithium Ridge project license. This high-potential lithium deposit is located 35 km from Andrada’s flagship Uis tin mine in Namibia’s Erongo region.
“This approval is the final component required for us to fully launch what will be a transformative partnership,” said Anthony Viljoen, CEO of Andrada Mining.
SQM’s $40 Million Investment to Boost African Lithium Industry
With global lithium demand rising, SQM’s planned investment of up to $40 million in Lithium Ridge is set to bolster Namibia’s lithium mining sector and contribute to Africa’s role in the global battery supply chain.
As part of the agreement:
- SQM gains access to a strategic lithium asset, strengthening its supply chain diversification.
- Andrada Mining remains the project’s operator, ensuring local expertise drives operations.
- A performance-based success fee will be granted to Andrada Mining if lithium resources exceed 40 million tonnes.
This collaboration aligns with Namibia’s ambitions to position itself as a key lithium producer, reducing dependency on traditional suppliers like China and Australia.
Why Namibia’s Lithium Market Is Attracting Global Players
Namibia has emerged as a promising destination for lithium mining, driven by:
- High-grade lithium deposits—rich spodumene resources support large-scale battery production.
- Pro-mining policies—government initiatives encourage foreign direct investment (FDI).
- Growing EV market demand—as electric vehicle (EV) adoption increases, so does the need for lithium.
SQM’s expansion into Africa reflects a wider industry trend where major lithium producers seek geographical diversification to secure supply stability. With geopolitical tensions and resource nationalism affecting major lithium markets, Africa is poised to become a crucial player in the global lithium race.
Conclusion: Africa’s Growing Role in the Lithium Market
SQM’s entry into Namibia is a landmark moment for Africa’s lithium industry, reflecting a global shift toward diversified supply chains. As demand for lithium surges, investments like this will enhance Africa’s position in the EV and battery materials sector, paving the way for long-term sustainability and economic growth in the region. This deal underscores a broader trend of international collaboration in securing critical minerals, positioning Namibia as a key player in the future of battery technology.
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