Sociedad Quimica Y Minera de Chile SA ADR Dossier
Qualitative Analysis
Business overview
Chemical & Mining Co of Chile Inc (Sociedad Química y Minera de Chile S.A., or SQM) is a leading global producer of specialty plant nutrients, iodine, lithium, and industrial chemicals. The company's operations are heavily concentrated in northern Chile, primarily exploiting the rich caliche ore and brine deposits of the Salar de Atacama. SQM is one of the world's largest suppliers of lithium, a critical component in electric vehicle batteries and grid storage systems, making its financial performance highly sensitive to global commodity price cycles. A key strategic development is the Nova Andino Litio joint venture with state-owned Codelco, under which SQM maintains operational control through 2030, transitioning to Codelco's majority control from 2031 to 2060.
Research as of 19 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
A joint development project with Codelco through the Nova Andino Litio joint venture to transition lithium extraction in the Salar de Atacama to Direct Lithium Extraction (DLE) technology. The project aims to eliminate traditional evaporation processes and cease fresh water extraction to minimize ecological impact.
Expected impact: Secures sustainable, long-term lithium production in the Salar de Atacama through 2060 with minimal environmental footprint.
Construction of a seawater pipeline in the Tarapacá region to supply industrial water to SQM's operations and neighboring communities.
Expected impact: Provides additional operational flexibility and unlocks incremental production capacity for iodine and nitrates.
Expanding chemical processing capacity in Chile, aiming to raise lithium hydroxide capacity to 100,000 metric tons per year from 2026 and lithium carbonate equivalent (LCE) capacity up to 240,000 metric tons per year by 2028.
Expected impact: Allows SQM to capture growing global demand for high-quality battery-grade lithium products.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Strategic Partnerships
Secures SQM's operating rights and lithium production in the Salar de Atacama from 2031 through 2060. The partnership was formalized by merging Codelco's subsidiary Minera Tarar SpA into SQM Salar SpA (renamed Nova Andino Litio SpA), with Codelco holding 51% and SQM holding 49% of the equity. SQM will manage operations through 2030, after which Codelco will assume operational control.
Terms: The economic rights and dividend preferences (Series A for Codelco, Series B for SQM) took effect on January 1, 2025. In Q1 2026 alone, the partnership generated over US$530 million in contributions to the Chilean state.