CHILEAN anti-trust regulator FNE said Friday it had reached an agreement with Tianqi Lithium Corp. that would allow the Chinese miner to purchase a stake in top lithium producer SQM, pending court approval.

The settlement stipulates that Tianqi can not name one of its executives or employees to SQM’s board, and requires that the Chinese miner notify regulators of any future, lithium-related deal struck with either SQM or top-competitor Albemarle.

“The measures agreed upon are intended to limit Tianqi’s access to commercially sensitive information held by SQM,” the FNE said in a statement.

Tianqi said in a statement Saturday that it has agreed to comply with the conditions, which mark an important next step in the process of finalizing the investment agreement.

“Tianqi Lithium believes these remedies and conditions go beyond what the law in Chile requires, but has agreed to comply with them as a clear signal of its respect for Chile and its institutions, as well as its commitment to ensure the highest level of corporate governance practices are put in place at SQM,” Tianqi said.

Tianqi said it expects the transaction will be completed within the expected time frame and close in the fourth quarter of this year.

Tianqi’s interest in SQM comes as China aggressively promotes electric vehicles to combat air pollution and help China’s domestic carmakers leapfrog the combustion engine to build global brands.

The Chilean regulator had launched an investigation in June after Tianqi said it would buy a quarter of SQM for US$4.1 billion, giving it a coveted stake in one of the world’s top producers of lithium, a key component in the batteries that power everything from cell phones to electric vehicles.

(SD-Agencies)