By Fabian Cambero and Daina Beth Solomon

SANTIAGO (Reuters) -Copper output from Chile’s state-run Codelco rose 22% in April compared to the same period a year before, with an expected output of 105,000 metric tons, Chairman Maximo Pacheco said on Tuesday.

The world’s largest copper producer slightly recovered last year from a quarter-century production low, and is aiming to increase its output once more this year.

Pacheco told an annual shareholders meeting on Tuesday that demand is strong for the red metal, even as he acknowledged geopolitical tensions associated with access to critical minerals.

"The market looks good, it looks very strong in Asia, in China, in the United States, in Brazil," he said.

Codelco previously said uncertainty around U.S. tariffs imposed by President Donald Trump’s administration had prompted more copper shipments to the United States. He also noted that he was seeing more demand from China in the second quarter.

Pacheco said he has been working to promote the construction of a new copper smelter in Chile, and that Codelco has offered to supply 1.2 million tons of copper annually in a 20-30 year contract as an incentive to investors.

Pacheco also discussed Codelco’s efforts to enter the lithium business in Chile, which is the world’s second biggest producer of the battery metal.

Pacheco said he is optimistic about securing the approval of China regulators for a joint venture with lithium producer SQM at the Atacama salt flat, although he said the timeline is unclear.

China is the last country whose regulatory approval is needed for the partnership, which will mark the Chilean state’s entry into lithium production.

Codelco has already done its part to provide China with all required materials about the planned operation, Pacheco said.

Codelco also aims to enter the lithium business with a new project in Chile’s Maricunga salt flat. Pacheco said a partner will be named within the coming weeks or months, after Codelco received binding offers from global companies in March.