Lithium equities opened the week under pressure, with Chilean producer SQM shedding 2.00% to US$67.06 and the Global X Lithium & Battery Tech ETF (LIT) slipping 0.85% to US$69.22.
The sell-off was driven by growing uncertainty surrounding the leadership handover at state-owned miner Codelco, which has clouded the near-term outlook for the sector.
The weakness in SQM, a major component of Chile's benchmark S&P IPSA index, contributed to a broader reversal in the local market.
The IPSA had previously shown positive momentum in late June but fell 0.77% on Tuesday, marking a shift in sentiment.
The decline in lithium names underperformed the broader market, despite underlying strength in electric vehicle demand that has otherwise supported the sector.
The leadership transition at Codelco introduces operational and strategic uncertainty for investors.