SQLite isn't compressed. There is a commercial offering from the creators of SQLite that adds compression but its rarely seen in the wild to be honest.
SQLite isn't compressed by default, but there are extensions like https://phiresky.github.io/blog/2022/sqlite-zstd/ that offer compression. It would be interesting to see how well that extension works with this project.
I do not think SQLite compresses data by default. Can you point to any documentation suggesting otherwise?