Namibia signs major lithium deal with Chilean group SQM

Namibia has taken a decisive step forward in the critical minerals sector thanks to an agreement between Chilean giant SQM and South African company Andrada Mining. The partnership, focused on the development of the Lithium Ridge asset, positions the country as a key link in the supply chain for electric vehicle (EV) batteries and renewable energy storage solutions.

SQM's first foray into Africa, this agreement highlights the continent's growing attractiveness for strategic minerals. Located 35 kilometres from the Uis tin mine in the Erongo region, Lithium Ridge benefits from a potential $40 million investment by SQM, which could acquire up to 50% of Grace Simba Investments (GSI), Andrada's subsidiary holding the licence. With its technical and financial expertise, SQM will work with Andrada to accelerate the exploration and development of the site, once regulatory approval has been obtained.

For Anthony Viljoen, CEO of Andrada Mining, the approval is the "final element" in a "transformative partnership" that will boost the local economy and create jobs in a resource-rich region. Namibia's Minister of Mines and Energy, Tom Alweendo, welcomed the initiative: "This agreement reflects our vision of sustainably exploiting our mineral wealth while attracting global investment."

Lithium, at the heart of the energy transition, is crucial for EV batteries and renewable energy systems. With an expected bonus if resources exceed 40 million tonnes, Lithium Ridge could become a major supplier. This project will diversify Namibia's mining sector, which until now has focused on uranium and diamonds, strengthening its economic resilience and strategic global role.

By aligning itself with the growing demand for minerals for batteries, this partnership places Namibia at the forefront of the African lithium industry. It promises not only industrial growth, but also a model for future investment, serving global green energy ambitions and local development.