The deal is non-binding and still must be formalized and approved by shareholders.

The state-run miner is not only battling to reignite copper production which is at its lowest level in 25 years, but is also facing calls to rein in its debt.

The company is already producing in phase one of the mine, with expected production of 130,000 tonnes of battery-grade lithium concentrate this year.

“Australia can be more than a ‘dig and ship’ nation,” Tesla Chair Robyn Denholm told a conference in Canberra.

The glacier park sits along the upper part of the Olivares and Colorado river basins.

African Rainbow Minerals is seeking lithium and copper acquisitions but is concerned about "crazy money" being paid for metal assets.

Its chairman also expects the market to maintain its confidence in Codelco, despite rating agency Moody's giving notice of a possible ratings downgrade.