Feb. 6 (UPI) -- China's Tianqi Lithium Corp. announced plans to reduce its stake in Chilean lithium producer SQM, the world's largest lithium company, where it holds a 21.9% share, as Chile moves to restructure its lithium industry through a major state-backed partnership.
In a filing to the Hong Kong Stock Exchange, the Chinese firm said it approved a divestment plan to sell 1.25% of its holdings within one year, Chilean financial newspaper Diario Financiero reported.
Tianqi had initially notified the exchange it would sell 100% of its stake in SQM. The notice was withdrawn minutes later and replaced with the smaller divestment plan.
The announcement came after Chile's Supreme Court ruled against Tianqi's legal challenge seeking to block SQM's lithium partnership with state-owned copper giant Codelco to develop resources in northern Chile.
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