Sociedad Quimica y Minera de Chile SA

Sociedad Quimica y Minera de Chile SA is a senior lithium producer headquartered in Santiago, Chile, operating primarily in South America. The company's portfolio consists of 9 projects, comprising 5 operating mines, 2 development, and 2 advanced exploration projects. Key assets include Norte Grande Caliche, Salar De Atacama, Nueva Victoria, and Mt. Holland. The company operates as an integrated global producer and marketer of chemical and mineral products for industries essential to human progress, including health, nutrition, renewable energy, and technology. Its business model is founded on the development of high-quality natural resources, which facilitates a cost-leadership position supported by a specialized international commercial network with sales in over 100 countries. Production processes involve the extraction and processing of both brine and caliche ore, utilizing a high degree of solar energy in its evaporation processes. This operational approach provides significant flexibility, allowing the enterprise to shift production between different product grades to meet evolving market demands. The organization leverages a culture of excellence, safety, and innovation to develop differentiated products and maintain its competitive standing. A key operational advantage is the synergy between its business lines, where intermediate products from one process serve as raw materials for another, optimizing resource utilization and cost efficiency.

Strategic focus centers on maintaining global leadership in core markets through a multi-faceted approach that includes securing access to high-quality assets, expanding its global presence, and actively pursuing diversification opportunities. The organization aims to strengthen its operational, logistical, and commercial excellence to achieve cost leadership while upholding a conservative financial policy to navigate economic cycles. Growth is pursued through both organic development and strategic transactions, including acquisitions and joint ventures, with a disciplined approach to portfolio management that may involve divesting interests to reallocate capital. A core component of the strategy is significant investment in research and development to optimize existing processes, reduce production costs, and develop higher-margin products with new applications. This is complemented by a foundational commitment to a corporate culture based on excellence, safety, sustainability, and integrity to attract and retain talent, ensuring long-term innovation and business sustainability.

The Board of Directors is composed of 8 members, with 7 of the 8 qualifying as independent under NYSE standards, ensuring robust oversight. Board composition reflects international diversity, with 50% of directors being non-Chilean and 1 female member. Governance is structured through 3 key committees: the Directors' Committee, the Corporate Governance Committee, and the Safety, Health, and Environment Committee. In 2024, the Board held 22 meetings, achieving an average attendance rate of 93%. The company's governance framework is guided by a formal Corporate Governance Policy, which is reviewed annually and aligns with international best practices. A structured induction program is in place for new directors, providing comprehensive orientation within 60 days of their election. The Board employs a biannual self-evaluation system to promote continuous improvement. Executive leadership is headed by a General Manager, appointed in 2019, who oversees a divisional structure designed to enhance focus on distinct business areas.

The organization's sustainability framework is guided by a comprehensive plan structured around 3 pillars: contributing to sustainable industries, supporting its people, and protecting the environment, all aligned with the UN Sustainable Development Goals. Key environmental commitments include significant reductions in brine and continental water consumption by 2028 and 2030, respectively, and a goal to achieve carbon neutrality. Water management is enhanced by an online public platform providing environmental monitoring data. Community engagement is managed through co-created programs focused on education, health, entrepreneurship, and heritage preservation, with formal working groups established to ensure continuous dialogue. A formal Human Rights Policy, based on UN Guiding Principles, is in place and has been informed by a commissioned Human Rights Impact Assessment. Workplace safety is managed through an integrated system with 13 core elements. The company's ESG performance is validated through participation in the Dow Jones Sustainability Index, CDP, and EcoVadis, alongside certifications such as ISO 14001, ISO 50001, ISO 45001, and the IRMA 75 standard.

The corporate ownership structure includes 2 principal shareholder groups, the Pampa Group and Tianqi, which collectively held approximately 47.92% of total shares as of year-end 2024. A significant internal reorganization was executed in 2024, establishing 3 distinct operational divisions to enhance strategic focus on different business areas. In 2024, the company completed a joint acquisition with Hancock Prospecting of a mineral exploration entity, with each partner securing a 50% interest. Also in 2024, an association agreement was signed with Codelco to form a future partnership for the joint exploitation of certain mineral rights from 2025 to 2060, pending fulfillment of specific conditions. Long-standing arrangements include a 50/50 joint venture with Wesfarmers Limited, established in 2017 to develop a new production facility, and a joint venture with Ajay Chemicals Inc. focused on recycling activities. Key operational subsidiaries, such as SQM Salar SpA and SQM Industrial S.A., manage core production and processing activities.