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Google and Chile Ink Deal for Trans-Pacific Submarine Cable to Boost Digital Connectivity

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Alphabet’s Google has signed a landmark agreement with the Chilean government to deploy a 14,800-kilometer (9,196-mile) submarine data cable linking Chile with Australia and Asia. The cable is expected to be operational by 2027 and marks the first submarine cable project in the South Pacific, reinforcing Chile’s ambitions to become a regional digital hub for Latin America.

“This is an important commitment with an extraordinary strategic partner,” said Chile’s Transport Minister Juan Carlos Muñoz, emphasizing the cable’s role in improving connectivity with Asian nations, particularly China, which is Chile’s largest trading partner.

Open Access and Broader Goals

Cristian Ramos, head of telecommunications infrastructure for Alphabet’s Latin America operations, confirmed that the cable will be open for use by other entities, allowing technology firms operating in Chile to benefit from the improved infrastructure.

The cable’s deployment comes amid escalating technological competition between the U.S. and China in Latin America, with submarine cables becoming increasingly significant in their geopolitical rivalry.

Though exact costs have not been disclosed, Chilean authorities had previously estimated the project’s cost to range between $300 million and $550 million, with Chile contributing $25 million through its state-owned partner Desarrollo País.

Applications in Mining, Science, and Industry

The cable is expected to deliver a range of benefits, including better performance for Asian tech platforms like TikTok, enhanced astronomical data transmission, and improved coordination for mining operations shared between Chile and Australia.

“Mining companies with operations in both countries can consider shared command centers where teams can support each other in real-time,” noted Deputy Secretary of Telecommunications Claudio Araya.

Deployment will begin next year from the Chilean port city of Valparaiso. Chile is also evaluating an additional link connecting the cable to Argentina, further expanding the project’s regional impact.

Future Expansion and Antarctic Ambitions

The agreement could encourage similar projects connecting South America with Asia, further strengthening Chile’s digital infrastructure. Separately, Chile is planning another submarine cable project to link the southern tip of South America with Antarctica, mainly for scientific research purposes.

The partnership between Google and Chile is not only a technological milestone but also a reflection of broader strategic interests as digital infrastructure becomes central to global economic and political influence.

Rio Tinto to Acquire Arcadium Lithium in $6.7 Billion Deal

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Mining giant Rio Tinto, the world’s second-largest mining company, has announced plans to acquire U.S.-based lithium producer Arcadium in a $6.7 billion deal. This acquisition is set to position Rio Tinto as one of the leading global suppliers of lithium, behind industry giants Albemarle and SQM.

The proposed all-cash transaction values Arcadium at $5.85 per share, marking a 90% premium to its closing price of $3.08 per share on October 4. With Arcadium’s current market valuation standing at $3.31 billion, according to LSEG data, this acquisition represents a significant leap in Rio Tinto’s portfolio, underscoring its commitment to expanding its role in the energy transition.

Rio Tinto CEO Jakob Stausholm hailed the acquisition as a key milestone for the company, integrating lithium production with its well-established aluminum and copper operations. “This is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside our leading aluminum and copper operations to supply materials needed for the energy transition,” Stausholm stated.

The deal follows earlier speculation about discussions between the two companies and will further strengthen Rio Tinto’s position in the growing market for lithium, a critical component in electric vehicle batteries and other renewable energy technologies.