Sociedad Química y ...
NYSE:SQM
$
61,26
$
+
$0,59 (0,97%)
61,26
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+$0,59 (0,97%)
End-of-day quote: 12/05/2025
Sociedad Química y Minera de Chile Stock Value
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Sociedad Química y Minera de Chile Company Info
EPS Growth 5Y
-18,30%
Market Cap
$17,50 B
Long-Term Debt
$3,60 B
Annual earnings
03/04/2026
Dividend
$2,13
Dividend Yield
3,48%
Founded
1926
Industry
Country
ISIN Number
Website
Analyst Price Target
$62,50
2.02%
Last Update: 12/06/2025
Analysts: 16
Highest Price Target $80,00
Average Price Target $62,50
Lowest Price Target $37,00
In the last five quarters, Sociedad Química y Minera de Chile’s Price Target has fallen from $57,84 to $52,59 - a -9,08% decrease. Ten analysts predict that Sociedad Química y Minera de Chile’s share price will increase in the coming year, reaching $62,50. This would represent an increase of 2,02%.
Top growth stocks in the materials sector (5Y.)
What does Sociedad Química y Minera de Chile do?
Sociedad Química y Minera de Chile S.A. (SQM) operates as a producer of potassium nitrate, iodine, and lithium worldwide.
The company also produces specialty plant nutrients, iodine derivatives, lithium derivatives, potassium chloride, potassium sulfate and certain industrial chemicals (including industrial nitrates and solar salts). The company’s products are sold in over 100 countries through its worldwide distribution network, with 96% of the company’s sales in 2024 derived from countries ou...
Sociedad Química y Minera de Chile S.A. (SQM) operates as a producer of potassium nitrate, iodine, and lithium worldwide.
The company also produces specialty plant nutrients, iodine derivatives, lithium derivatives, potassium chloride, potassium sulfate and certain industrial chemicals (including industrial nitrates and solar salts). The company’s products are sold in over 100 countries through its worldwide distribution network, with 96% of the company’s sales in 2024 derived from countries outside Chile.
The company’s products are mainly derived from mineral deposits found in northern Chile. The company mines and processes caliche ore and brine deposits.
From the company’s caliche ore deposits, the company produces a wide range of nitrate-based products used for specialty plant nutrients and industrial applications, as well as iodine and iodine derivatives. At the Salar de Atacama, the company extracts brines rich in potassium, lithium, sulfate and boron in order to produce potassium chloride, potassium sulfate, lithium solutions and bischofite (magnesium chloride). The company produces lithium carbonate and lithium hydroxide at the company’s plant near the city of Antofagasta, Chile, from the solutions brought from the Salar de Atacama. The company markets all of these products through an established worldwide distribution network.
The company’s products are divided into six categories: specialty plant nutrients; iodine and its derivatives; lithium and its derivatives; potassium chloride and potassium sulfate; industrial chemicals and other commodity fertilizers.
Specialty plant nutrients are premium fertilizers that enable farmers to improve yields and the quality of certain crops. The company’s main specialty fertilizer is potassium nitrate, which is used primarily via fertigation in high-value crops. Iodine and iodine derivatives are used in a wide range of medical, agricultural, and industrial applications, as well as in human and animal nutrition products. They are mainly used in the X-ray contrast media, polarizing film and pharmaceuticals. Lithium and its derivatives are mainly used in batteries, greases and frits for production of ceramics. Potassium chloride is a commodity fertilizer that is produced and sold by the company worldwide. Industrial chemicals have a wide range of applications in certain chemical processes such as the manufacturing of glass, explosives and ceramics. Industrial nitrates are also being used in concentrated solar power plants as a means for energy storage. Additionally, the company trades other complementary fertilizers worldwide to diversify its offerings.
Specialty Plant Nutrition: The company offers three main types of specialty plant nutrients for fertigation, direct soil, and foliar applications: potassium nitrate, sodium nitrate, and specialty blends. The company also sells other specialty fertilizers, including third-party products. These products, available in solid or liquid forms, are mainly used on high-value crops like fruit, flowers, and some vegetables. They are widely utilized in modern agricultural techniques, such as hydroponics, greenhouses, and fertigation (where fertilizer is dissolved in water before irrigation).
Specialty plant nutrients offer advantages over commodity fertilizers, such as quick absorption, excellent water solubility, and low chloride content. Potassium nitrate, a key product, comes in crystalline and prill forms for various applications. Crystalline potassium nitrate suits fertigation and foliar use, while prills are ideal for direct soil application.
The company markets its products under the following brands: Ultrasol (fertigation), Qrop (soil application), Speedfol (foliar application), and Allganic (organic agriculture).
Sophisticated customers now seek integrated solutions rather than single products. The company’s offerings include customized blends and agronomic services, enhancing plant nutrition for better yields and quality. Derived from natural nitrate compounds or potassium brines, its products feature beneficial trace elements, offering advantages over synthetic fertilizers. Consequently, specialty nutrients command a premium price compared to standard fertilizers.
Iodine and its Derivatives: The company is the world’s leading producer of iodine and iodine derivatives, which are used in a wide range of medical, pharmaceutical, agricultural and industrial applications, including X-ray contrast media, polarizing films for LCD and LED, antiseptics, biocides and disinfectants, in the synthesis of pharmaceuticals, electronics, pigments and dye components.
Lithium and its Derivatives: The company is a leading producer of lithium carbonate, which is used in a variety of applications, including electrochemical materials for batteries used in electric vehicles, portable computers, tablets, cellular telephones and electronic apparatus, frits for the ceramic and enamel industries, heat-resistant glass (ceramic glass), air conditioning chemicals, continuous casting powder for steel extrusion, pharmaceuticals and lithium derivatives. The company is also a leading supplier of lithium hydroxide, which is primarily used as an input for the lubricating greases industry and for cathodes for high energy capacity batteries.
Potassium: Potassium chloride is produced from brines extracted from the Salar de Atacama. This commodity fertilizer is used to nourish various crops, including corn, rice, sugarcane, soybeans, and wheat.
Industrial Chemicals: The company produces and sells three industrial chemicals: sodium nitrate, potassium nitrate and potassium chloride. Sodium nitrate is used primarily in the production of glass, explosives, and metal treatment, metal recycling and the production of insulation materials, among other uses. Potassium nitrate is used in the manufacturing of specialty glass, and it is also an important raw material for the production of frits for the ceramics, enamel industries, metal treatment and pyrotechnics. Solar salts, a combination of potassium nitrate and sodium nitrate, are used as a thermal storage medium in concentrated solar power plants. Potassium chloride is a basic chemical used to produce potassium hydroxide, and it is also used as an additive in oil drilling, as well as in food processing, among other uses.
Other Products and Services: The company sells a variety of fertilizers and blends, including those it does not produce. The company is the largest producer of potassium nitrate and distributor of potassium nitrate, sulfate, and chloride.
Business Strategy
SQM is a global company that develops and produces diverse products for several industries essential for human progress, such as health, nutrition, renewable energy and technology through innovation and technological development.
The company intends to maintain its leading world position in the lithium, potassium nitrate, iodine and thermo-solar salts markets by ensuring access to the best assets related to the company’s business lines by expanding the company’s global presence; actively searching for attractive minerals allowing the company diversification opportunities to replicate and expand the company’s existing mining capacities; and strengthening the company’s operational, logistical and commercial excellence process from beginning to end, while looking to be a cost leader.
The company positions itself as leaders in sustainability and commit to a sustainable future where the company constantly works to responsibly manage natural resources, protect human rights, care for the environment, form close and trusting relationships with the company’s neighboring communities and create value. Within these communities, the company supports projects and activities with a focus on education, business development, and protection of the environment and historical heritage. The company creates value for its clients through established commercial models and the production and development of differentiated products that respond to their industry and market specific needs, constantly creating and providing a sustainable improvement in the quality of life.
Specialty Plant Nutrition
The company's strategy in its specialty plant nutrition business offers smart and sustainable nutritional solutions to its customers. To that end, the company seeks to: leverage the advantages of its specialty products over commodity-type fertilizers applied to high-value crops; selectively expand its business by increasing its sales of higher margin specialty plant nutrients based on natural potassium and nitrates, particularly soluble potassium nitrate and specialty blends; seek investment opportunities in complementary businesses to develop new products and business models to add value to its customers; develop new specialty nutrient blends produced in its blending plants that are strategically located in or near its core markets to meet specific customer needs; focus primarily on markets where it can sell its plant nutrients in soluble applications to establish a leadership position; further develop its global distribution and marketing system directly and through strategic alliances; supply a product with consistent quality in accordance with its customers' specific requirements; invest in research and technology to improve its process yields and maximize productivity; and maintain production flexibility to capture emerging market opportunities.
Iodine and its Derivatives
The company's strategy in its iodine business is to: foster demand growth and promote new uses for iodine; supply a product with consistent quality in accordance with its customers' requirements; provide excellent service to its customers through a strong distribution network; build long-term relationships with its customers; invest in research and technology to increase recovery yields, lower production costs, and maintain high productivity; successfully execute its investment plan to increase production capacity and ensure flexibility; and participate in iodine recycling projects through the Ajay-SQM Group (ASG), a joint venture with the U.S.-based Ajay Chemicals Inc. (Ajay), and reduce its production costs through improved processes and higher productivity to compete more effectively.
Lithium and its Derivatives
The company's strategy in its lithium business is to: strategically allocate its lithium carbonate and lithium hydroxide sales; foster demand growth and promote new uses of lithium; selectively pursue opportunities in the lithium derivatives business by creating new lithium compounds; supply a product with consistent quality in accordance with its customers' requirements; diversify its operations geographically and jurisdictionally; and diversify its asset base or adjust risk by acquiring new projects and interests (either alone or with joint venture partners), divesting existing projects, or selling its interests in projects.
Potassium
The company's strategy in its potassium business is to: have the flexibility to offer products in crystallized (standard) or granular (compacted) form according to market requirements; focus on markets where it has logistical advantages and synergies with its specialty plant nutrition business; and supply a product with consistent quality according to its customers' specific requirements.
Industrial Chemicals
The company's strategy in its industrial chemicals business is to: maintain its leadership position in the industrial nitrates market; foster demand growth in different applications, as well as explore new potential applications; position itself as a reliable long-term supplier to the thermal storage industry by maintaining close relationships with R&D programs and industry initiatives; and supply a product with consistent quality in accordance with its customers' requirements.
New Business Ventures
The company constantly evaluates opportunities that are consistent with the company’s existing and new businesses.
In Australia, in addition to Mt. Holland and the company’s investment in Azure, the company is carrying out early-stage exploration activities in a series of different projects. Some of these activities are being directly carried out by the company’s internal geological exploration team, based in the company’s office in Perth, Western Australia, with others being worked in conjunction with partners through earn-in agreements. Activities range from desktop target generation to on-site mapping, rock chip/soil sampling and drilling.
During 2024, the company also expanded into early exploration projects in Sweden, subject to conditions precedent, and Namibia, with similar activities as the ones being carried out in Australia.
In Chile, the company is actively conducting exploration for metallic minerals in the mining properties the company owns. If such minerals are found, the company may decide to exploit, sell or enter into an association to extract these resources. The company’s exploration efforts are focused on the layer of bedrock that lies beneath the caliche ore that the company uses as the primary raw material in the production of iodine and nitrates. This bedrock has significant potential for metallic mineralization, particularly copper, gold and silver. A significant portion of the company’s mining properties are located in the Antofagasta region of Chile, where many large copper producers operate.
The company has an in-house geological exploration team that explores the area directly, identifying drilling targets and assessing new prospects. In 2021, the team has confirmed the existence of high-grade copper and gold mineralization at the Bufalo project, located 120 kilometers east of the city of Antofagasta. The Bufalo project corresponds to a district that hosts several mineralized bodies of copper, copper-gold and copper-gold-silver in which SQM has already drilled nearly 170,000 meters, using the company’s own diamond and reverse circulation RC drilling machines. More than 45 projects with copper potential have also been generated, in greenfield and intermediate exploration stages, which are under study and drilling. The company also has a metal business development team that works to engage partners interested in investing in metal exploration within the company’s mining properties. As of December 2024, the company had an option agreement in place with a private equity-owned mining company. It participated in the formation of a joint venture as a result of the exercise of an option agreement with a major mining company in the precious metals market.
Main Business Lines
Specialty Plant Nutrition
The company is the world’s largest producer of potassium nitrate.
Specialty Plant Nutrition: Market
Specialty plant nutrients serve various agricultural purposes, including fertigation for high-value crops like vegetables and fruits. These fertilizers must be highly soluble and free of impurities for modern irrigation methods, such as drip and micro-sprinkler systems. Potassium nitrate stands out among these nutrients due to its chlorine-free composition, high solubility, proper pH, and lack of impurities, allowing it to command a premium price over alternatives like potassium chloride and sulfate.
Modern irrigation systems are widely used in protected crops and high-value fruit plantations like greenhouses, tunnels (for berries), and shade houses (for tomatoes). Specialty nutrients are also applied for foliar and granular soil applications in niches, such as potato and tobacco production.
Specialty plant nutrients have distinct characteristics that can increase productivity and improve quality when applied to specific crops and soils. These products offer certain benefits over commodity fertilizers derived from other sources of nitrogen and potassium, such as urea and potassium chloride.
Specialty Plant Nutrition: The company’s Products
The company produces three main types of specialty plant nutrients that provide nutritional solutions for fertigation, direct soil applications, and foliar fertilizers: potassium nitrate (KNO3), sodium nitrate (NaNO3), and specialty blends. The company also sells other specialty fertilizers, including products produced by third parties. All of these products are used in solid or liquid form primarily on high-value crops, such as fruits, flowers, and some vegetables. These fertilizers are widely used in crops utilizing modern agricultural techniques, such as hydroponics, greenhouses, and crops with foliar application and fertigation; (in the latter case, the fertilizer is dissolved in water prior to irrigation).
Specialty plant nutrients have certain advantages over commercial fertilizers, such as fast and effective absorption (without requiring nitrification), superior water solubility, and low chloride content. One of the most important products in this business line is potassium nitrate, which is marketed in crystalline or prilled form, allowing for different application methods. Crystalline potassium nitrate products are ideal for fertigation and foliar applications, and potassium nitrate beads are suitable for direct soil applications.
Special blends are produced using the company's own specialty plant nutrients and other components in blending plants operated by it or its affiliates and related companies around the world.
The company has developed brands for the commercialization of its Specialty Plant Nutrition products according to the different applications and uses of its products. The company's main brands are: Ultrasol (fertigation), Qrop (soil application), Speedfol (foliar application), and Allganic (organic agriculture).
In 2024, the company continued to grow sales of differentiated fertilizers such as Ultrasoline for improved root growth and optimal nitrogen metabolism, ProP for more efficient phosphorus absorption, and Prohydric for more efficient fertilization and water use.
Specialty Plant Nutrition: Marketing and Customers
In 2024, the company sold its specialty plant nutrients in approximately 100 countries and to more than 1,500 customers. The 10 largest customers collectively accounted for approximately 25% of sales during that period.
The company distributes its specialty plant nutrition products globally through its network of commercial offices and distributors.
The company maintains inventory of its specialty plant nutrients at its commercial offices in key markets to facilitate prompt deliveries to customers. Sales are conducted through spot purchase orders or short-term contracts.
As part of its marketing strategy, the company offers technical and agronomical assistance to clients. The company's knowledge is based on extensive research and studies conducted by its agronomical teams in collaboration with producers worldwide. This expertise supports the development of specific formulas and hydroponic and fertigation nutritional plans, enabling the company to provide informed advice.
By working closely with its customers, the company identifies the needs for new products and potential high-value markets. The company's specialty plant nutrients are used on various crops, especially value-added ones, where they help customers increase yields and quality to achieve premium pricing.
Specialty Plant Nutrition: Competition
In 2024, the company’s sales represented approximately 41% of the global agricultural potassium nitrate market by volume. In the 100% soluble potassium nitrate segment, the company’s main competitor is Haifa Chemicals Ltd. (Haifa) of Israel.
Iodine and its Derivatives
In 2024, the company’s revenues from iodine and iodine derivatives representing 21.4% of its total revenues.
Iodine: The company’s Products
The company produces iodine in its Nueva Victoria plant, near Iquique, Chile, the company’s Pedro de Valdivia plant, and at the Pampa Blanca mining site, both located close to María Elena, Chile. The company has a total production capacity of approximately 14,300 metric tons per year of iodine.
Through Ajay (ASG), the company produces organic and inorganic iodine derivatives. ASG was established in the mid-1990s and has production plants in the United States, Chile, and France. ASG is one of the world’s leading producers of inorganic and organic iodine derivatives.
Consistent with the company's iodine business strategy, it is constantly working on the development of new applications for its iodine-based products, pursuing a continuing expansion of its businesses, and maintaining its market leadership.
The company manufactures its iodine and iodine derivatives in accordance with international quality standards and has qualified its iodine facilities and production processes under the ISO 9001:2015 program, providing third-party certification of the quality management system and international quality control standards that it has implemented.
Iodine: Marketing and Customers
In 2024, the company sold its iodine products in approximately 33 countries to 131 customers, and most of its sales were exports. Two customers individually accounted for at least 10% of sales in this segment, representing approximately 33% of iodine sales. The 10 largest customers together accounted for approximately 77% of sales during this period.
The company sells iodine through its own worldwide network of representative offices and through its sales, support, and distribution affiliates. The company maintains inventories of iodine at its facilities throughout the world to facilitate prompt delivery to customers.
Lithium and its Derivatives
The company is one of the world’s largest producers of lithium carbonate and lithium hydroxide.
Lithium: The company’s Products
The company produces lithium carbonate at its Lithium Chemical Plant, near Antofagasta, Chile, from highly concentrated lithium chloride produced in the Salar de Atacama. The annual production capacity of the lithium carbonate plant at the Lithium Chemical Plant is approximately 210,000 metric tons per year.
The company also produces lithium hydroxide at its Lithium Chemical Plant, which has a production capacity of 40,000 metric tons per year, and it is in the process of increasing this capacity to 100,000 metric tons per year by the end of 2025. In addition, the company produces lithium hydroxide from lithium sulfate at its lithium hydroxide refining plant in China. This facility has a design capacity of 20,000 metric tons per year. The company has additional capacity, through toll manufacturing plants, to produce 20,000 metric tons of lithium carbonate from lithium sulfate per year. The company is also developing the Mt. Holland lithium project in Australia through its joint venture with Wesfarmers. The concentrator plant is ramping up production to nameplate capacity, while the Kwinana lithium hydroxide refinery continues to advance in construction, with 95% completion, and a planned production capacity of 50,000 metric tons of lithium hydroxide (50% SQM's share).
Lithium: Marketing and Customers
In 2024, the company sold its lithium products in 43 countries to approximately 218 customers, and most of its sales were to customers outside of Chile. During 2024, 93% of its sales of lithium were in Asia. Two customers accounted for at least 10% of lithium and lithium derivatives sales, representing approximately 28% of the company's lithium revenues in 2024. The company's ten largest customers together accounted for approximately 60% of revenues. One supplier, Corfo, accounted for approximately 24% of this business line's cost of sales, mainly related to lease payments payable to Corfo under the SQM-Corfo Agreements for lithium products produced in the Salar de Atacama. The company makes lease payments to Corfo that are associated with the sale of different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide, and potassium chloride.
The company sells lithium carbonate (Li2CO3) and lithium hydroxide (LiOH) through its own worldwide network of representative offices and through its sales, support, and distribution affiliates. The company maintains stocks of these products at its facilities around the world to facilitate prompt delivery to customers. Sales of lithium carbonate and lithium hydroxide are made on the basis of spot purchase orders or under supply contracts.
Potassium
Potassium: The company’s Product
The company produces potassium chloride by extracting brines from the Salar de Atacama that are rich in potassium and other salts. The company offers potassium chloride in two grades: standard and compacted.
Potassium: Marketing and Customers
In 2024, the company sold potassium chloride and potassium sulfate to approximately 729 customers in 39 countries. The company estimates that the ten largest customers together accounted for approximately 35% of sales during 2024. The company makes lease payments to Corfo that are associated with the sale of different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide, and potassium chloride.
Potassium: Competition
The company’s main competitors are Uralkali, Belaruskali, Nutrien and Mosaic.
Industrial Chemicals
In 2024, the company’s revenues from industrial chemicals represented approximately 1.7%.
Industrial Chemicals: Market
Industrial sodium and potassium nitrates are used in a wide range of industrial applications, including the production of glass, ceramics and explosives, metal recycling, insulation materials, metal treatments, thermal solar and various chemical processes.
The company is also experiencing a growing interest in using solar salts in thermal storage solutions related to CSP (Concentrated Solar Power) technology. Due to their proven performance, solar salts are being tested in industrial heat processes and heat waste solutions. These new applications may open new opportunities for solar salts uses in the near future, such as retrofitting coal plants.
Industrial Chemicals: The company’s Products
The company produces and sells three industrial chemicals: sodium nitrate (NaNO3), potassium nitrate (KNO3) and potassium chloride (KCl). Sodium nitrate is used primarily in the production of glass, explosives, metal treatment, metal recycling and the production of insulation materials, adhesives, among other uses. Potassium nitrate is used in the manufacturing of specialty glass, and it is also an important raw material for the production of frits for the ceramics, enamel industries, metal treatment and pyrotechnics. Solar salts, a combination of potassium nitrate and sodium nitrate, are used as a thermal storage medium in concentrated solar power plants. Potassium chloride is a basic chemical used to produce potassium hydroxide, and it is also used as an additive in oil drilling and in food processing, among other uses.
In addition to producing sodium and potassium nitrate for agricultural applications, the company produces different grades of these products, including prilled grades, for industrial applications. The grades differ mainly in their chemical purity. The company has operational flexibility in producing industrial-grade nitrates because they are produced from the same process as their equivalent agricultural grades, needing only an additional step of purification. The company may, with certain constraints, shift production from one grade to the other in response to market conditions. This flexibility allows it to maximize yields and reduce commercial risk. In addition to producing industrial nitrates, the company produces, markets, and sells industrial-grade potassium chloride.
Industrial Chemicals: Marketing and Customers
In 2024, the company sold its industrial nitrate products in 53 countries, to approximately 274 customers. The ten largest customers together accounted for approximately 27% of this segment's revenues. The company makes lease payments to Corfo that are associated with the sale of different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide, and potassium chloride.
The company's industrial chemical products are marketed mainly through its own network of offices, logistic platforms, representatives, and distributors. The company maintains updated inventories of its stocks of sodium nitrate and potassium nitrate, classified according to graduation, to facilitate prompt dispatch from its warehouses. The company provides support to its customers and continuously works with them to improve its service and quality, together with developing new products and applications for its products.
Industrial Chemicals: Competition
The company’s main competitors in the industrial potassium nitrate business are Haifa Chemicals, Kemapco and some Chinese producers.
Other Products
SQM generates revenue from the sale of third-party fertilizers (both specialty and commodity). These fertilizers are traded globally in substantial volumes and are used either as raw materials for specialty mixes or to enhance the company's product portfolio.
The company has established capabilities in commercial management, supply, flexibility, and inventory management, enabling it to respond to the evolving fertilizer market and secure profits from these transactions.
Production Process
The company’s integrated production process can be classified according to its natural resources: caliche ore deposits, which contain nitrates, iodine and potassium; brines from the Salar de Atacama, which contain potassium, lithium, sulfate, boron and magnesium; and spodumene deposits from the Mt. Holland project in Western Australia, which contain lithium.
Caliche Ore Deposits
Caliche ore deposits are located in the First and Second Regions in northern Chile. During 2024, the company’s mining operations were concentrated in the First Region where it mainly worked in the mining sectors Tente en el Aire, Mina Oeste, Hermosa, Mina Sur and Torcaza, and in the Second Region at the Pampa Blanca site. Operations at the El Toco mine (which is part of the Maria Elena site) and the Pedro de Valdivia site were suspended in November 2013 and November 2015, respectively, in an effort to optimize its production facilities with lower production costs.
During 2024, SQM used four continuous mining equipment systems to replace the drilling and blasting process for mining some of the caliche ore and obtaining a smaller ore size (under 6 ½ inches) that allows a better metallurgical recovery.
The run of mine ore is loaded in heaps and leached with water to produce concentrated solutions containing iodine, nitrate and potassium. These solutions are treated at the company’s iodide plants where iodine is extracted through both solvent-extraction and blow out processes. The remaining solutions, which are rich in nitrates and potassium, are subsequently sent to solar evaporation ponds where the solutions are evaporated and after iodide is obtained, nitrate and potassium salts are produced. These concentrated salts are then sent to Coya Sur where they are used to produce potassium nitrate and sodium nitrate.
Caliche Ore-Derived Products
Caliche ore-derived products are sodium nitrate, potassium nitrate, sodium potassium nitrate and iodine.
Sodium Nitrate
During 2024, sodium nitrate for both agricultural and industrial applications was produced from nitrate salts from the company's mining operations at Sur Viejo and fed to its new crystallization plant located in Coya Sur. Crystallized sodium nitrate is processed at the Coya Sur production plants to produce sodium nitrate and sodium potassium nitrate in different chemical and physical forms, including crystallized and prilled products. Finally, the products are transported by truck to the company's port facilities in Tocopilla for shipping to customers and distributors worldwide.
Potassium Nitrate
Potassium nitrate is produced at the company's Coya Sur facility using a production process developed in-house. Potassium salts produced at Nueva Victoria or Coya Sur, as well as potassium salts from the Salar de Atacama, are added to the company's conversion plants. A chemical reaction begins, transforming sodium nitrate into potassium nitrate and creating formed sodium chloride as a by-product. Depending on the specifications of the required product, it is subjected to an adiabatic or atmospheric cooling process to obtain the required quality.
The company’s potassium nitrate production capacity at Coya Sur is approximately 900,000 metric tons per year.
The potassium nitrate produced at Coya Sur is transported to Tocopilla for shipping and delivery to customers and distributors. All potassium nitrate produced in crystallized or prilled form at Coya Sur has been certified by TÜV-Rheinland under the quality standard ISO 9001:2015. Additionally, the Coya Sur and Nueva Victoria leaching sites achieved certification by TÜV-Rheinland in 2023 under the ISO 50001:2015 quality standard (certification of energy management systems), and in Coya Sur, the company is advancing in the phase two of the external audit to certify its potassium nitrate, sodium nitrates and soluble fertilizers production.
Iodine and Iodine Derivatives
During 2024, the company produced iodine at its facilities at Nueva Victoria, Pedro de Valdivia and Pampa Blanca (iodide solutions). Iodine is extracted from solutions produced by leaching caliche ore.
As in the case of nitrates, the process of extracting iodine from the caliche ore is well established, but variations in the iodine and other chemical contents of the treated ore and other operating parameters require a high level of know-how to manage the process effectively and efficiently.
The company has obtained patents in the United States and Chile (Chilean patent number 47,080) for its iodine prilling process.
Prilled iodine is tested for quality control purposes, using international standard procedures. It is then packed in 20 to 50-kilogram drums or 350-to-700-kilogram maxi bags and transported by truck to Antofagasta, Mejillones, or Iquique for export. The company’s iodine and iodine derivatives production facilities have been certified by TÜV-Rheinland under the ISO 9001:2015 program, providing third-party certification of its quality management system. The last recertification process was approved in November 2022, valid through March 2026.
The company's total iodine production in 2024 was 13,101 metric tons, predominantly from its Nueva Victoria facility. The company has the flexibility to adjust its production according to market conditions.
The company uses a portion of the iodine it produces to manufacture inorganic iodine derivatives, which are intermediate products used for manufacturing agricultural and nutritional applications, at facilities located near Santiago, Chile. The company also produces inorganic and organic iodine derivative products together with Ajay, which purchases iodine from the company. In the past, the company has primarily sold its iodine derivative products in South America, Africa and Asia, while Ajay and its affiliates have primarily sold their iodine derivative products in North America and Europe.
Salar de Atacama Brine Deposits
The Salar de Atacama, located approximately 210 kilometers east of Antofagasta, is a salt-encrusted depression in the Atacama Desert, within which lies an underground deposit of brines contained in porous sodium chloride rock fed by an underground inflow from the Andes mountains, which is the result of millions of years of climatic and tectonic impacts. Brines are pumped from depths of 15 to 150 meters below the surface, through a field of wells that are located in the Salar de Atacama, distributed in areas authorized for exploitation, and which contain relatively high concentrations of potassium, lithium, sulfates and other minerals.
The company’s mining exploitation rights to the Salar de Atacama are pursuant to the Corfo Agreements, which expire in 2030.
For the year ended December 31, 2024, revenues related to products originating from the Salar de Atacama represented 55% of its consolidated revenues, consisting of revenues from its potassium business line and its lithium and derivatives business line for the period. All of the company’s products originating from the Salar de Atacama are derived from its extraction operations under the SQM-Corfo Agreements. As of December 31, 2024, only six years remain on the term of the SQM-Corfo Agreements.
Under the Chilean National Lithium Strategy announced in April 2023, the Chilean government, through Codelco, intends to participate in the lithium-related activities in the Salar de Atacama. On December 27, 2023, SQM and Codelco signed a non-binding MOU, which, among other matters, established a framework for the terms and conditions of the definitive agreements for a new entity through which SQM’s subsidiary, SQM Salar, may continue to exploit mineral resources in the Salar de Atacama until 2060. Corfo has granted to Codelco’s subsidiary, Minera Tarar, the rights to exploit the Salar de Atacama from 2031 to 2060, which will be contributed to the joint venture. If the parties are unable to agree on definitive agreements for the proposed new entity, either the Chilean government or SQM could allow the SQM-Corfo Agreements to expire in 2030 in accordance with their terms.
Products Derived from the Salar de Atacama Brines
The variety of products that may be derived from the Salar de Atacama brines includes solutions of lithium chloride, lithium sulfate, lithium carbonate, lithium hydroxide, lithium salts, potassium chloride, potassium salts, potassium sulfate, boric acid, sodium chloride and bischofite (magnesium chloride).
In order to produce these products, brines from the Salar de Atacama are pumped to solar evaporation ponds. Evaporation of the water contained in the brine in a sequential process of precipitation and evaporation, results in potassium-enriched salts and lithium-concentrated brines. In the first stages of the evaporation process, sodium chloride salts (halite) precipitate followed by potassium chloride salts together with sodium chloride (sylvinite), which are used to produce fertilizer products. The brine that remains in the evaporation pond system continues its concentration, producing additional products of interest, such as lithium sulfate salts and a concentrated lithium chloride solution, which are used to produce lithium sulfate concentrate and lithium carbonate, respectively.
Lithium Chloride Solution and Lithium Carbonate
The production capacity of the company’s lithium carbonate facility at the end of 2024 was 210,000 metric tons per year.
The company’s lithium carbonate production quality assurance program has been certified by TÜV-Rheinland under ISO 9001:2015 since September 2018.
Lithium Hydroxide (from Lithium Carbonate)
The company has three lithium hydroxide plants in Chile, one of which has two production lines, and the second of which came into operation at the end of July 2024. Together, they have a total production capacity of 40,000 metric tons per year. These plants are located at the lithium production chemical plant, adjacent to the company's lithium carbonate operations.
The company’s lithium hydroxide production quality assurance program has been certified by TÜV-Rheinland under ISO 9001:2015 since September 2018.
Lithium Sulfate
During the brine concentration process and if the chemistries are favorable, it is possible to obtain lithium sulfate as additional raw material. This salt mainly precipitates in the potassium carnallite and bischofite stages.
After collection, the lithium sulfate is treated in the MOP H II plant through crushing, flotation and filtration processes, obtaining wet lithium sulfate as an intermediate product. In addition, salts with high potassium content are obtained as a by-product of the process, which are treated in the adjacent SOP-H plant, allowing additional potassium chloride to be obtained.
The wet lithium sulfate is then treated at the SOP S/C plant producing dry lithium sulfate as a finished product, which is sent to its refining plant and different tolling facilities in China to be converted into lithium hydroxide and/or lithium carbonate.
Lithium Hydroxide (from Lithium Sulfate)
The company’s lithium hydroxide operations in China began at the beginning of 2023, with a design annual capacity of 20,000 metric tons. The production of lithium hydroxide monohydrate from lithium sulfate begins with a purification stage of the raw material for its subsequent transformation to lithium carbonate, which is subsequently converted into high-purity lithium hydroxide through crystallization, drying, cooling and packaging stages. Impurities from the process are eliminated in a form of mixed salts, avoiding liquid waste in the plant. Sodium sulfate is generated as a by-product, which is dried and packaged for sale.
Additionally, the company has tolling contracts with tolling facilities in China for the refining of lithium sulfate with an additional annual capacity of 20,000 metric tons allowing the production of lithium hydroxide and/or lithium carbonate.
Potassium Chloride
The company uses potassium chloride derived from the Salar de Atacama brines in the production of potassium nitrate. Production of its own supplies of potassium chloride provides the company with substantial raw material cost savings. The company also sells potassium chloride to third parties, primarily as a commodity fertilizer.
To produce potassium chloride, brines from the Salar de Atacama are sent to the first evaporation stage, where sodium chloride salts (halite) precipitate, are then harvested and removed. These salts have the potential to be used in the copper mining process. In the second stage of the evaporation process, the remaining brine from the first stage is transferred to other evaporation ponds where potassium chloride salts together with sodium chloride (sylvinite) precipitate. These salts are harvested and then sent for treatment at one of the wet potassium chloride plants where potassium chloride is separated by a grinding, flotation, and filtering process. In the final evaporation stage, salts containing magnesium are harvested and treated at one of the cold leach plants where magnesium is removed. Part of the potassium chloride is transported approximately 300 kilometers to the company’s Coya Sur facilities via a dedicated truck transport system, where it is used in the production of potassium nitrate. The use of potassium chloride salts as a raw material in Coya Sur allows the company to capture significant savings, as it allows the company to use potassium salts with different qualities and to avoid buying and importing potassium chloride from external sources.
The remainder of the potassium chloride produced at the Salar de Atacama is shipped to the company's port in Tocopilla in either crystallized (standard) or granular (compacted) form and then shipped and sold as a commodity fertilizer to third parties. All of the company's potassium chloride-related plants in the Salar de Atacama have a nominal production capacity of up to 2.6 million metric tons per year. Actual production capacity depends on the volume, quality, and performance of the salts used in the process, as well as the quality of the brine resources pumped from the Salar de Atacama.
Mount Holland Spodumene Deposits
The Mount Holland project is an integrated lithium project in Western Australia consisting of (i) an open-pit mine on the Earl Grey hard rock lithium deposit and a spodumene concentrator comprises Dense Media Separation (DMS) and flotation circuits, 120 kilometers southeast of Southern Cross, and (ii) a lithium hydroxide (LiOH) refinery, located in the town of Kwinana, 26.5 kilometers from the Port of Fremantle, from which the battery-grade LiOH product will be shipped. The concentrator at the Mt. Holland site has a nominal production capacity of 383,000 dry metric tons per annum concentrate at a grade of 5.5 per cent lithium oxide matching the refinery feed requirements. The refinery in Kwinana has the capacity to produce 50,000 metric tons per annum of lithium hydroxide.
The project is an unincorporated joint venture in which SQM and Wesfarmers, through a wholly owned subsidiary, each holding 50% of the assets. The joint venture is managed by Covalent, an entity equally owned (50/50) by SQM and Wesfarmers.
The Mount Holland project focuses on the extraction and beneficiation of spodumene reserves in the Earl Grey pegmatite group. The deposit consists of a main body of thick tabular pegmatites, which become progressively narrower and branch to the south and east of the main pegmatite until the main body splits into several narrower dikes. Sporadically, isolated box rock enclaves are found within the pegmatite body.
The first ore from the pit was mined in 2022 and the concentrator started commissioning in the third quarter of 2023. First concentrate production from both circuits was achieved in the last quarter of 2023 and the first export of spodumene concentrate was in the first half of 2024. In December 2023, construction of the concentrator plant was completed and in December 2024, the refinery is under construction, with the objective of completion during 2025.
Products Derived from the Mount Holland Spodumene Deposits
Spodumene Concentrate
After traditional drill and blasting, load and haul operations of the spodumene ore obtained from the open pit is sent to Run of Mine (ROM) ore pad, from which a crushing circuit is fed. The crushing circuit reduces the granulometry of the material and generates a particle size suitable for processing at the smaller scale DMS circuit of the concentrator plant. This crushing circuit also has an intermediary crushed ore stockpile. The concentrator also has a larger integrated flotation circuit for the treatment of the finer portion of ore.
Until full commissioning of the lithium hydroxide refinery at Kwinana, the concentrate will be trucked there for commissioning and production and will continue to be trucked to a storage facility at Bunbury, approximately 500 kilometers west of the Mt. Holland mine. At Bunbury, the product is distributed to the SQM and Wesfarmers joint venture partners to follow their individual shipping and marketing plans.
Lithium Hydroxide
At the Kwinana refinery, the spodumene concentrate feed is calcined in a rotary kiln and afterwards treated with sulfuric acid. The sulfated calcine is transferred to the leaching and impurity removal area and leached with a process liquor. The slurry is then neutralized and filtered. The filtrate is pumped into the purification area where it is passed through a filter to remove fine entrained particles and later enters the solution causticization area where caustic soda (NaOH) is added to convert the lithium sulfate to lithium hydroxide (LiOH) plus sodium sulfate (Na2SO4). Lithium hydroxide is then crystallized, dried and finally packaged for shipment and subsequent commercialization. The production capacity of the lithium hydroxide plant is designed to take the whole concentrate production from Mt. Holland and transform it into 50,000 metric tons of lithium hydroxide per year upon completion of its construction.
Future production will depend on the actual volumes and quality of the spodumene concentrate shipped by the concentrator operation, the refinery plant performance and prevailing market conditions.
Raw Materials
The company’s electricity needs are primarily covered by Power Purchase Agreements that the company entered into with Empresa Electrica Cochrane SpA (an AES affiliate) on December 31, 2012.
For the company’s supply of liquefied natural gas, the company maintains a five-year contract with Engie, which was executed in 2019 and some annual contracts to supply possible increases in demand. In addition, the company has a supply of liquefied petroleum gas (LPG) from Lipigas at the company’s Lithium Chemical production facility and the Salar de Atacama.
Water Supply
The main source of potable water for Mt. Holland mine is a water pipeline from Goldfields pipeline (Water Corporation) which is linked at approximately 2.5 kilometers north west of the Moorine Rock townsite, and transported through a 136 kilometers below ground water pipeline.
Government Regulations
Under Law No. 16,319 that created the Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear), or ‘CCHEN’, the company has an obligation to the CCHEN regarding the exploitation and sale of lithium from the Salar de Atacama, which prohibits the use of lithium for nuclear fusion.
The company is also subject to the Chilean Labor Code and the Subcontracting Law No 20,123, which are overseen by the Labor Authority (Dirección del Trabajo), the National Geology and Mining Service (Servicio Nacional de Geología y Minería) or ‘Sernageomin’, and the National Health Service.
The company is subject to the Securities Market Law and Law No. 18,046 on Corporations (Ley de Sociedades Anónimas) or the Chilean Corporations Act, which regulates corporate governance of public companies. Specifically, the Chilean Corporations Act regulates, among other things, independent director requirements, disclosure obligations to the general public and to the CMF, as well as regulations relating to the use of inside information, the independence of external auditors, and procedures for the analysis of transactions with related parties.
The company’s operations in Chile are subject to both national and local regulations related to safety, health and environmental protection. In Chile, the main regulations on these matters that are applicable to the company is the Mine Health and Safety Act of 1989 (Reglamento de Seguridad Minera or the ‘Mine Health and Safety Act’), the Health Code (Código Sanitario), the Health and Basic Conditions Act of 1999 (Reglamento sobre Condiciones Sanitarias y Ambientales Básicas en los Lugares de Trabajo or the ‘Health and Basic Conditions Act’), the Subcontracting Law, the Environmental Law of 1994, amended in 2010 (Ley sobre Bases Generales del Medio Ambiente) and Law No.16,744 of the Labor Code relating to workplace accidents and occupational diseases (‘Law No. 16,744’).
The Health and Basic Conditions Act along with the company’s Internal Mining Standards (Reglamentos Internos Mineros) establish guidelines to maintain a workplace where safety and health risks are managed appropriately. The company is subject to the general provisions of the Health and Basic Conditions Act, the company’s own internal standards and the provisions of the Mine Health and Safety Act. In the event of non-compliance, the Ministry of Health and relevant regulatory bodies are entitled to use their enforcement powers to ensure compliance with the law.
Since 2020, the company has participated in voluntary ratings, such as Ecovadis, international certifications, such as Responsible Care from the Chilean Chemical Industry Association, Protect&Sustain from the International Fertilizer Association, ISO 14001, ISO 45001 and ISO 50001, and the IRMA Standard Assessment Audit, to promote responsible mining.
During 2024, the company continued to make progress in the SQM Lithium Chile Division's strategy of certifications and evaluations, which is why it carried out follow-up audits for ISO 9001, 14001, 45001 and 50001 certifications at the Salar de Atacama. At its Chemical Lithium Plant, it obtained certification in Chilean standard 3262 - Gender Equality and Work-Life Balance Management System, which represents a progress and complements other evaluations and sustainability standards of the company.
In line with the company's sustainability objectives, during 2024, it continued working on the integration of IRMA in its processes by advancing in some cross-cutting requirements in the Lithium Chemical Plant. During 2025, the company has planned the follow-up audit in Salar de Atacama with the objective of verifying the level of achievement of IRMA 75.
The company is also subject to other Australian federal regulations, including native title, environmental protection and biodiversity conservation, emissions reporting, the Australian Corporations Act, work health and safety, and the Competition and Consumers Act.
On a state level, SQM mine developments are subject to the Environmental Protection Act 1986 (WA) (EP Act). Under the EP Act, SQM is obliged to prevent, control and abate pollution and environmental harm and ensure the conservation and protection (as applicable) of the land subject to SQM’s tenure.
SQM operates under strict regulatory requirements in several jurisdictions, including, among others:
EU Regulation: Under the REACH Regulation, SQM is a registrant for iodine, sodium nitrate, potassium nitrate and urea phosphate. As of 2023, SQM's subsidiaries in Europe must comply with the new EU safety data sheet format.
Carbon Border Adjustment Mechanism (CBAM): In October 2023 the transitional phase came into force, requiring reporting of GHG emissions on imports to the EU. SQM submitted its first notification in 2024.
Explosives Precursors: SQM participates in the implementation of Regulation (EU) 2019/1148 and has trained its personnel in Europe through an e-learning course.
Regulations in Ecuador and Chile: In 2023, Ecuador established requirements for trade in controlled chemical substances, and SQM obtained the necessary authorizations. In Chile, regulations were published for Law No. 21,349 on fertilizers and biostimulants, applicable in 2026.
International Transport: SQM collaborates with the International Maritime Organization (the "IMO") (Sub-Committee on Carriage of Cargoes and Containers of the IMO) on cargo and container transport regulations. In 2023, IMO updated the IMSBC Code, incorporating potassium nitrate and sodium nitrate as Group C cargoes.
Research and Development
During 2024, the company’s research and development related expenditure totaled approximately US$8.7 million for the SQM Iodine -Plant Nutrition Division and US$19 million for the lithium-related divisions.
Mining Rights
SQM's caliche ore mining interests are located throughout the valley of the Tarapacá and Antofagasta regions of northern Chile (in a part of the country known as El Norte Grande). From caliche ore, SQM produces products based on nitrates and iodine, and caliche also contains concentrations of potassium. SQM's mining interests in the brine deposits of the Salar de Atacama are found within the Atacama Desert, in the eastern region of El Norte Grande. From these brines SQM primarily produces products based on potassium, sulfate, and lithium. SQM's lithium mining interests are located in Mount Holland in Western Australia. SQM produces spodumene concentrate from the Mount Holland deposit and plans to produce lithium hydroxide following the commissioning of a refinery facility in Kwinana, Western Australia.
Mining Concessions in Chile
SQM holds mining rights in Chile pursuant to mining concessions for exploration and exploitation of mining resources granted pursuant to applicable law in Chile.
As of December 31, 2024, approximately 99.33% of SQM’s mining interests in Chile were held pursuant to Mining Exploitation Concessions and 0.67% pursuant to Mining Exploration Concessions. Of the Mining Exploitation Concessions, approximately 99.05% already have been granted pursuant to applicable Chilean law, and approximately 0.95% are in the process of being granted. Of the Mining Exploration Concessions, approximately 100% already have been granted pursuant to applicable Chilean law.
Mount Holland Mining Rights
The Mt. Holland Lithium project development envelope for the Mine and Concentrator is spread across three core mining tenements (M77/1065, M77/1066 & M77/1080), as well as exploration licenses, general purpose licenses and miscellaneous licenses (Project Tenements), covering an approximate area of 4,606 hectares.
The majority of the project properties are currently registered in equal parts to (i) MH Gold and Montague Resources Australia Pty Ltd, both ultimately owned by Wesfarmers and (ii) SQM Australia — an affiliate of SQM. The project is an unincorporated joint venture, of which SQM and Wesfarmers, through a wholly owned subsidiary, each holding 50% of the assets. The joint venture is managed by Covalent, an entity equally owned (50/50) by SQM and Wesfarmers.
The Kwinana refinery development is located on a long-term lease covering 40.5 hectares at Lot 15, Mason Road in Kwinana. The lease was registered by Covalent with Development WA in September 2021.
Material Individual Properties
El Norte Grande Caliche, Chile
The company’s mining operations are concentrated in the First Region of Chile, where the company mainly works in the mining areas of Tente en el Aire, Nueva Victoria Oeste, Hermosa and Torcaza, and in the Second Region of Chile, where the company works in the mining area of Pampa Blanca.
The El Norte Grande Caliche, found in Regions I and II of northern Chile, corresponds to flat areas or pampas, that have been thoroughly explored. Results indicate that these prospects hold mineralization of nitrate and iodine. The area is accessible from Santiago through Route 5.
Facilities
Nueva Victoria
The Nueva Victoria mine and facilities are located 140 kilometers southeast of Iquique and are accessible by highway. Since 2007, the Nueva Victoria mine includes the mining properties Soronal, Mapocho and Iris. At this site, SQM uses caliche ore to produce salts rich in nitrates and iodine, through heap leaching and the use of solar evaporation ponds. The main production facilities at this site include the operation centers for the heap leaching process, the iodide and iodine plants at Nueva Victoria and Iris and the evaporation ponds at the Sur Viejo sector of the site. The areas being mined are located approximately 27 kilometers northeast of Nueva Victoria. Solar energy and electricity are the primary sources of power for this operation. The nitrate-rich salts are sent to Coya Sur, which is a processing plant located approximately 15 kilometers south of María Elena, and production activities undertaken there are associated with the production of potassium nitrate and finished products. The main production plants at this site include three potassium nitrate plants with a total capacity of 900,000 metric tons per year. There are also four production lines for crystallized nitrates, with a total capacity of 1,200,000 metric tons per year, and a prilling plant with a capacity of 360,000 metric tons per year. The potassium nitrate produced at Coya Sur is an intermediate product that is used as a raw material for the production of finished products (crystallized nitrates and prilled nitrates). Therefore, the production capacities listed above are not independent of one another and cannot be added together to obtain an overall total capacity. Natural gas is the main source of energy for the Coya Sur operation.
Pampa Blanca
The Pampa Blanca Project mine and facilities are located in the Antofagasta Region of northern Chile. It is located 100 kilometers northeast of the city of Antofagasta, in the commune of Sierra Gorda. The property has an area of 51,201 hectares and is composed of 152 mining concessions. The Pampa Blanca Project aims to produce salts rich in iodide, iodine and nitrate from the processing of caliche, extracted from deposits rich in this mineral. The Pampa Blanca Mining Plan considers an initial extraction of caliche at a rate of 5.5 million metric tons per year between 2024-2040. For the period 2024-2040 a total extraction of 85.3 million metric tons of caliche is projected with an average grade of 392 ppm of iodine and 5.4% of nitrates. The production process to obtain iodine as the main product, along with salts rich in sodium nitrate and potassium nitrate as by-products, consists of heap leaching with fresh water or with recirculated solutions to obtain a solution rich in iodate, which will then be treated in a chemical plant to transform it into elemental iodine in prill format. Solar energy and electricity are the main sources of energy for this operation. The Pampa Blanca Project facilities also include operation centers for the heap leaching process, iodide plant, and evaporation ponds.
Pampa Orcoma
The Pampa Orcoma Project is located in the Tarapacá Region of northern Chile. It is situated 99?kilometers to the northeast of the city of Iquique, in the community of Huara. The property covers an area of 10,296 hectares and is composed of 45 mining concessions. The Pampa Orcoma Project aims to produce iodide, iodine and nitrate-rich salts from the processing of caliche that will be extracted from deposits rich in this mineral. The Pampa Orcoma Mining Plan considers an initial extraction of caliche at a rate of 8.4 million metric tons per year during the first four years of operation, followed by an extraction rate of 20 million metric tons per year from the fifth year of operation onwards. For the 16 year of LoM, a total extraction of 287.4 million metric tons of caliche is projected with an average grade of 408 ppm iodine and 6.7% nitrates. The production process to obtain iodine as the main product, along with salts rich in sodium nitrate and potassium nitrate as by-products, involves leaching with seawater or with recirculated solutions to obtain a solution rich in iodate, which will then be treated in chemical plants to transform it into elemental iodine in prill format. The Pampa Orcoma Project plan includes the construction of the following facilities: iodide and iodine production plants, with a capacity of 2,500 metric tons per year (of equivalent iodine), evaporation ponds to produce salts rich in nitrate at a rate of 320,325 metric tons per year and a seawater adduction pipe to meet the water needs. Solar energy and electricity are the primary sources of energy for this future operation. The development of the Pampa Orcoma Project was postponed, with no changes to the project information since December 31, 2022.
SQM directly or indirectly through subsidiaries owns, leases or holds concessions over the facilities where it carries out its operations.
Salar de Atacama, Chile
The operations of SQM in the Salar de Atacama are located in the Antofagasta Region of Chile, which covers the El Loa Province and the San Pedro de Atacama commune. The Salar de Atacama Project is in operation for the treatment of brines to obtain lithium and potassium salts, and as such it is in a production stage. The Salar de Atacama deposits are owned by Corfo, which grants special operating contracts or administrative leases to private companies for the extraction of brine. SQM and Albemarle have a lease agreement with Corfo to extract and produce lithium from brines stored in the Salar de Atacama deposit. Consequently, SQM must follow the terms of the agreement and also the conditions established in RCAs in order to retain operations in the Salar de Atacama. Exploration is routinely carried out within the established areas.
SQM leases an area of about 1,400 square kilometers with permission to extract brines from an area of 820 square kilometers with two core operations. It produces lithium at its southwest operation. The lease was signed in 1993 and expires on December 31, 2030.
Mount Holland Lithium Project, Australia
The Mount Holland project is a production stage integrated lithium project in Western Australia consisting of (i) an open pit mine and lithium concentrator operation, at Mount Holland, 100 kilometers southeast of Southern Cross, and (ii) a lithium hydroxide (LiOH) refinery located in the Town of Kwinana, 26.5 kilometers from the port of Fremantle, from where the LiOH will be shipped.
The project is an unincorporated joint venture in which SQM and Wesfarmers through a wholly owned subsidiary each holding 50% of the assets. The joint ventures are managed by Covalent, an entity equally owned (50/50) by SQM and Wesfarmers.
The project is accessed by land using the Parker Range Road and Marvel Loch-Forrestania road, which are an all-season gravel road. The Parker Range road is connected to the Great Eastern Highway, which is a paved road with connectivity to Southern Cross, Kalgoorlie and Perth. Also, the project has its own access by air using an airstrip and infrastructure in the southern part of the mine.
The Project comprises:
An open pit mining operation aimed at extracting lithium ore from the Earl Grey lithium deposit at Mount Holland, approximately 100 kilometers south of Southern Cross in Western Australia and 500 kilometers east of Perth.
A spodumene concentrator facility located at the Mount Holland site with a nominal production capacity of 383,000 metric tons per annum of dry spodumene concentrate at a grade of 5.5% Li2O.
A refinery in development, located in the Kwinana industrial precinct approximately 45 kilometers south of Perth, with the capacity to produce 50,000 metric tons per annum of battery-grade lithium hydroxide product (LiOH) for export globally.
The non-process infrastructure (NPI) required to support the Mount Holland and Kwinana sites, including roads, buildings, accommodation and the provision of logistics and utilities.
Transportation and Storage Facilities
Product transportation is carried out by trucks that are operated by dedicated third parties through long-term contracts. SQM leases port and storage facilities for the transportation and management of finished products and consumable materials.
SQM's main centers for the production and storage of raw materials are the facilities in Nueva Victoria, Coya Sur and Salar de Atacama in Chile and Mount Holland in Australia. Other facilities include chemical plants for the finished products of lithium carbonate and lithium hydroxide at its Lithium Chemical Plant near the city of Antofagasta, Chile, the lithium hydroxide refinery in Western Australia (part of the Mount Holland project), and the Port of Tocopilla terminal in Chile, which is the principal facility for the storage and shipment of its bulk products and packaged potassium chloride (MOP), nitrates and lithium carbonate.
In Chile, the nitrate finished products are produced at the company’s Coya Sur facilities and then transported via trucks to the Port of Tocopilla terminal where they are stored and shipped in bulk or packaged in polypropylene bags, polyethylene or polypropylene bags. The latter can also be transported and stored in an alternative port (Mejillones) for later shipment.
The potassium chloride is produced at the company’s Salar de Atacama facilities and the company transports it by truck, either to the Port of Tocopilla terminal, the Coya Sur facility or the alternative Port of Mejillones for its shipment. The product transported to Coya Sur is an intermediate product that is used as a raw material for the production of potassium nitrate. The product transported to the Port of Tocopilla or Mejillones is a final product that will be shipped or transported to the customer or affiliate. The nitrate raw material for the production of potassium nitrate in Coya Sur is produced at Nueva Victoria.
Lithium chloride solution, which contains a high concentration of boron, is produced at the company’s Salar de Atacama facilities, and is transported to the lithium carbonate plant at its Lithium Chemical Plant area where the finished lithium carbonate is produced. Part of the lithium carbonate is provided to the adjacent lithium hydroxide plant where the finished lithium hydroxide is produced. These two products are packed in packaging of distinct characteristics such as polyethylene bags, multi-layer or polypropylene FIBC big bags, and stored within the same facilities in secured storerooms. The products are later consolidated into containers that are transported by trucks to a transit warehouse or directly to port terminals for their subsequent shipment. The port terminals used are suited to receive container ships and are situated in Antofagasta, Mejillones and Iquique. Lithium carbonate can also be transported in packaged format both to the Port of Tocopilla and to an alternative port (Mejillones) to be shipped in break bulk format.
Iodine obtained from the same caliche used for the production of nitrates, is processed, packaged and stored exclusively in the Pedro de Valdivia and Nueva Victoria facilities. The packaging used for iodine are drums and polypropylene FIBC big bags with an internal polyethylene bag and oxygen barrier, which are consolidated into containers and sent by truck to port terminals suited for their management, principally located in Antofagasta, Mejillones and Iquique. Thereafter, they are sent to distinct markets by container ship or by truck to Santiago where iodine derivatives are produced in the Ajay-SQM Chile plants. Drums and maxibags can also be transported on flat ramps to an alternative port (Mejillones) to be shipped in break bulk format.
In Australia, spodumene concentrate production from the Mount Holland mine began in 2023. Until the full ramp-up of the lithium hydroxide refinery in Kwinana, the concentrate will be trucked to a storage facility in Bunbury, approximately 500 kilometers west of the Mount Holland mine. At Bunbury, the product is distributed to both JV partners SQM and Wesfarmers, for them to follow their individual shipment and commercialization plans. For the ground logistics from Mount Holland mine to Bunbury Port, bulk haulage operators are responsible to haul the spodumene concentrate via haul trucks on public road. The haulage operator has a certification awarded by Bureau Veritas for the provision of bulk haulage and warehouse services, transport of controlled waste dangerous goods, operation and maintenance of heavy vehicles in accordance with the requirements of the management system standards, ISO 9001:2015 and ISO 45001:2018.
In Chile, the company owns and operates the port and storage facilities at the Port of Tocopilla terminal for the transportation and management of finished products and consumable materials. The Port of Tocopilla terminal facilities cover approximately 22 hectares and are located approximately 186 kilometers north of Antofagasta, approximately 124 kilometers west of María Elena and Coya Sur and 372 kilometers to the west of Salar de Atacama. The company’s affiliate, Servicios Integrales de Tránsitos y Transferencias S.A. (SIT), operates facilities for the shipment of products and the delivery of certain raw materials based on renewable concessions granted by Chilean regulatory authorities, provided that the facilities are used in accordance with the authorization granted and the company pays an annual concession fee. The facilities include a truck weighing machine that confirms product entry into the port and transfers the product to distinct storage zones, a piezometer within the shipping system to carry out bulk product loaded onto ships, a crane with a 40-ton capacity for the loading of sealed product onto ships and a nitrate mixing facility.
The storage facilities consist of a system of six silos, with a total storage capacity of 55,000 metric tons, and a mixed storage area of open and covered storehouses with a total storage capacity of approximately 250,000 metric tons. In addition, to fulfill future storage needs, the company will continue to make investments in accordance with the investment plan outlined by management. The products are also put into bags at the Port of Tocopilla terminal facilities where the bagging capacity is established by two bag packaging machines, one for sacks and polypropylene FIBC big bags and one for FFS polyethylene. The products that are packaged in Tocopilla may be subsequently shipped at the same port or may also be consolidated into trucks or containers for its subsequent dispatch to clients by land or sea through containers from other ports, principally located in Antofagasta, Mejillones and Iquique.
For the transportation of bulk product, the transportation belt system extends across the coastline to deliver products directly to the hatches of bulk cargo ships. The nominal load capacity of this shipping system is 1,200 tons per hour. The transportation of packaged product is carried out utilizing the same bulk cargo ships using barges without motors located in the dock and loaded by a crane with a 40-ton capacity from the Port of Tocopilla terminal. Thereafter, they are towed and unloaded using ship cranes to the respective warehouses.
The company normally contracts bulk cargo ships to transfer the product from the Port of Tocopilla terminal to the company’s hubs around the world or to clients directly, who, in certain instances, use their own contracted vessels for delivery.
Tocopilla processes related to the reception, handling, storage and shipment of bulk/packaged nitrates produced at Coya Sur are certified by the third-party organization TÜV-Rheinland under the quality standard ISO 9001:2015. The Port of Tocopilla has also Responsible Care, ISO 14000 and Ecoport certifications.
History
Sociedad Química y Minera de Chile S.A. was founded in 1926. The company was incorporated in 1968.
Sociedad Química y Minera de Chile Questions and Answers
Which sectors generate sales and which are the top 3 markets?
Revenue distribution by sectors:
Lithium and derivatives: approx. 50%
Potassium fertilizers: approx. 20%
Industrial materials and others: approx. 30%
TOP 3 markets:
China: approx. 35%
USA: approx. 25%
Europe: approx. 20%
Sociedad Química y Minera de Chile S.A. (SQM) generates the majority of its...
Revenue distribution by sectors:
- Lithium and derivatives: approx. 50%
- Potassium fertilizers: approx. 20%
- Industrial materials and others: approx. 30%
TOP 3 markets:
- China: approx. 35%
- USA: approx. 25%
- Europe: approx. 20%
Sociedad Química y Minera de Chile S.A. (SQM) generates the majority of its revenue from the sale of lithium and its derivatives, driven by the increasing demand for batteries for electric vehicles. The second largest revenue share comes from the sale of potassium fertilizers, widely used in agriculture. Industrial materials and other products complement the portfolio.
China is the largest market for SQM, mainly due to the high demand for lithium for local battery production. The USA and Europe follow as important markets, also benefiting from the growing electromobility and demand for sustainable solutions.
At which locations are the company’s products manufactured?
Main production site: Salar de Atacama, Chile
Other production sites:
Coya Sur, Chile
Antofagasta, Chile
Sociedad Química y Minera de Chile S.A. (SQM) is one of the world's leading companies in the production of lithium, potassium nitrate, and other specialty fertilizers. The main production site...
Main production site: Salar de Atacama, Chile
Other production sites:
- Coya Sur, Chile
- Antofagasta, Chile
Sociedad Química y Minera de Chile S.A. (SQM) is one of the world's leading companies in the production of lithium, potassium nitrate, and other specialty fertilizers. The main production site is located in Salar de Atacama, one of the largest and richest lithium sources in the world.
In addition, SQM operates other production facilities in Coya Sur and Antofagasta, Chile, to expand its product range and meet demand. These strategically located sites allow the company to efficiently respond to global markets.
What strategy does Sociedad Química y Minera de Chile pursue for future growth?
Revenue Growth: 18% (2024)
Investments in Lithium Production: $1.5 billion (2024)
Sociedad Química y Minera de Chile S.A. (SQM) is strongly focusing on expanding its lithium production to benefit from the increasing demand for lithium-ion batteries. This is primarily driven by the boom in the electr...
Revenue Growth: 18% (2024) Investments in Lithium Production: $1.5 billion (2024)
Sociedad Química y Minera de Chile S.A. (SQM) is strongly focusing on expanding its lithium production to benefit from the increasing demand for lithium-ion batteries. This is primarily driven by the boom in the electric vehicle industry.
In 2024, the company announced investments of $1.5 billion to expand production capacities in its Chilean mines. These investments are expected to significantly increase annual production capacity and position SQM as one of the leading providers in the global lithium market.
Additionally, SQM is pursuing a diversification strategy by expanding its activities in other areas such as potassium and industrial chemicals. This strategy aims to make the company more resilient to price fluctuations in the lithium sector and ensure long-term growth.
Which raw materials are imported and from which countries?
Main Imported Raw Materials: Chemicals, Machinery, and Equipment
Countries of Origin: USA, Germany, China
Sociedad Química y Minera de Chile S.A. (SQM) is a leading company in the production of lithium, potassium nitrate, and other specialty fertilizers. To support their production, SQM imports vari...
Main Imported Raw Materials: Chemicals, Machinery, and Equipment
Countries of Origin: USA, Germany, China
Sociedad Química y Minera de Chile S.A. (SQM) is a leading company in the production of lithium, potassium nitrate, and other specialty fertilizers. To support their production, SQM imports various raw materials and materials. These include chemicals, which are necessary for the processing and refining of lithium and other minerals.
Machinery and equipment are also imported to increase the efficiency and capacity of the production facilities. The main suppliers of these materials are the USA, Germany, and China, known for their advanced technologies and high-quality products.
These imports are crucial for maintaining the competitiveness and high production standards of SQM.
How strong is the company’s competitive advantage?
Market share in the lithium sector: approximately 20% (2024)
EBITDA margin: 45% (2024)
R&D expenses: $50 million (2024)
Sociedad Química y Minera de Chile S.A. (SQM) has a significant competitive advantage in the global lithium sector, particularly due to its substantial market share of around 2...
Market share in the lithium sector: approximately 20% (2024)
EBITDA margin: 45% (2024)
R&D expenses: $50 million (2024)
Sociedad Química y Minera de Chile S.A. (SQM) has a significant competitive advantage in the global lithium sector, particularly due to its substantial market share of around 20%. This position is strengthened by the strategic location of its production facilities in the Atacama Desert, one of the world's richest lithium sources.
The high EBITDA margin of 45% in 2024 demonstrates the efficiency and profitability of the company, indicating strong cost control and high demand for lithium products. This profitability enables SQM to continuously invest in research and development to enhance their production processes and develop new technologies.
Additionally, SQM benefits from long-term supply contracts and a diversified product portfolio that includes not only lithium but also other chemicals. This diversification reduces dependence on individual market segments and enhances the company's resilience to market fluctuations.
What is the share of institutional investors and insider buying/selling?
Institutional Investor Share: 45% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year
The institutional investor share in Sociedad Química y Minera de Chile S.A. is approximately 45%, indicating that a significant number of shares are held by large investment funds,...
Institutional Investor Share: 45% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year
The institutional investor share in Sociedad Química y Minera de Chile S.A. is approximately 45%, indicating that a significant number of shares are held by large investment funds, pension funds, and other institutional investors. These investors typically have a long-term investment horizon and can exert significant influence on corporate decisions.
In 2025, there were no significant insider transactions, suggesting that the management and other insiders have not made significant changes to their holdings. This could be seen as a sign of stability and confidence in the company's future development.
What percentage market share does Sociedad Química y Minera de Chile have?
Market share of SQM in the lithium sector: approximately 19% (2025)
Top competitors and their market shares:
Albemarle Corporation: approximately 23%
Ganfeng Lithium: approximately 17%
Tianqi Lithium: approximately 15%
Livent Corporation: approximately 10%
Orocobre Limited: approximately 8%
Moat o...
Market share of SQM in the lithium sector: approximately 19% (2025)
Top competitors and their market shares:
- Albemarle Corporation: approximately 23%
- Ganfeng Lithium: approximately 17%
- Tianqi Lithium: approximately 15%
- Livent Corporation: approximately 10%
- Orocobre Limited: approximately 8%
Moat of SQM:
SQM has a significant moat, primarily defined by its strategically advantageous mining areas in the Atacama Desert in Chile. This region is known for its high lithium concentrations and low production costs, giving SQM a cost advantage over many competitors.
Furthermore, SQM has extensive experience and established relationships in the industry, facilitating access to markets and customers. The ability to efficiently produce large quantities of lithium also strengthens the company's moat.
In comparison to other companies, Albemarle enjoys a similar advantage due to its global production facilities and diversified resources. Ganfeng and Tianqi benefit from strong government support and strategic partnerships, particularly in China, which also provides them with a significant moat.
In summary, SQM possesses a strong moat, but it is being challenged by competitors' global expansion strategies and technological advancements.
Is Sociedad Química y Minera de Chile stock currently a good investment?
Revenue Growth: 18% (2024)
Profit Growth: 20% (2024)
Market Share in the Lithium Sector: 23% (2024)
Sociedad Química y Minera de Chile S.A. (SQM) achieved an impressive revenue growth of 18% in 2024, driven by the increasing demand for lithium. The company has expanded its production capacities to m...
Revenue Growth: 18% (2024) Profit Growth: 20% (2024) Market Share in the Lithium Sector: 23% (2024)
Sociedad Química y Minera de Chile S.A. (SQM) achieved an impressive revenue growth of 18% in 2024, driven by the increasing demand for lithium. The company has expanded its production capacities to meet the growing demand in the electric mobility and energy storage sector.
With a market share of 23% in the global lithium sector, SQM positions itself as one of the leading providers. This strong market position enables the company to benefit from the long-term trends in electric mobility and renewable energies.
Additionally, SQM achieved a profit growth of 20% in 2024, attributed to efficiency improvements and cost reduction measures. These factors indicate that SQM is well positioned to capitalize on future market opportunities, making the stock a potentially attractive investment.
Does Sociedad Química y Minera de Chile pay a dividend – and how reliable is the payout?
Dividend Yield: 5.8% (estimated for 2025)
Dividend History: Continuous payout over the last 5 years
Sociedad Química y Minera de Chile S.A. (SQM) is known for its reliable dividend policy. The company has consistently distributed dividends in recent years, indicating a stable financial performance....
Dividend Yield: 5.8% (estimated for 2025)
Dividend History: Continuous payout over the last 5 years
Sociedad Química y Minera de Chile S.A. (SQM) is known for its reliable dividend policy. The company has consistently distributed dividends in recent years, indicating a stable financial performance.
The estimated dividend yield of 5.8% in 2025 shows that SQM continues to offer an attractive return for investors. This reliability in payout is attributed to the company's strong market position and the ongoing demand for lithium and other chemicals it produces.
Overall, it is expected that SQM will maintain its dividend policy unless significant market changes occur.
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