Chilean state-owned copper producer Corporación Nacional del Cobre de Chile (Codelco) is in advanced talks to acquire Australia-based Lithium Power International, reported Bloomberg News, citing people privy to the development.

A potential deal could value Lithium Power at around A$315m ($202m).

According to one of the people, the two companies are expected to sign a deal as soon as next week.

However, the discussions between the companies could be deferred or even not be materialised, the people further noted.

In a press statement, Lithium Power said: “Lithium Power reconfirms that it continues to be in discussions with Codelco regarding a potential transaction, but these discussions remain incomplete and no agreement on terms has yet been reached. Codelco is continuing to undertake its due diligence investigations.”

Codelco expects the acquisition of the Australian miner to boost its position in the country’s lithium industry.

Lithium Power owns projects in Chile and Australia, including the Maricunga project within the lithium triangle in northern Chile.

As per estimates, the Maricunga project holds around 1.9 million tonnes of lithium carbonate equivalent.

Earlier this year, Lithium Power said it selected Ashurst Australia as legal adviser and Canaccord Genuity (Australia) as financial adviser for the business sale process.

Meanwhile, in August 2023, Bloomberg News reported that Codelco and Anglo American were looking to partner to increase copper output and productivity at their adjoining operations in Chile.

Furthermore, the companies are considering processing ore from the Andina mine at the Los Bronces plants.