Market

Santiago, Chile. May 22, 2023.- Sociedad Química y Minera de Chile SA (SOC) (NYSE: SQM Bolsa De Santiago: SQM-B, SOM-A) and Ford Motor Company announced a long-term strategic agreement to ensure the supply of high-quality lithium products for the production of electric vehicles.

The agreement between Ford and SQM will guarantee the supply of battery-grade lithium carbonate and lithium hydroxide, essential components for manufacturing high-performance electric vehicle batteries. SQM's lithium should help Ford vehicles qualify for the US Inflation Reduction Act (IRA) consumer tax credit and help support its plans to produce electric vehicles and expand its presence in global electromobility markets .

Carlos Díaz, Executive Vice President Lithium at SQM, said: “We are pleased to announce this strategic agreement and value Ford's confidence in SQM's ability to deliver sustainably produced battery-grade lithium products in Chile. As one of the largest lithium producers in the world, for more than 25 years, SQM has been investing in technology and development of its own processes to produce high value-added lithium products with one of the lowest environmental footprints in the industry. . This alliance will allow both companies to further contribute to the decarbonization of the planet on a global scale.”

Added Lisa Drake, Ford's vice president, EV Industrialization, Model e: "Working with strong global partners like SQM will help us make real progress in making electric vehicles more accessible for our customers in the future. SQM has established well-managed operations, a commitment to sustainability, and a proven track record of capacity growth. Working together helps Ford strengthen our plans to help secure the lithium we need and de-risk our production plans for millions of electric vehicles over time."

This initiative, "SQM Lithium Ventures Corporate Acceleration Program", in collaboration with Endeavor Atacama, is looking for entrepreneurs from Antofagasta, Chile and around the world who provide innovative solutions to address the challenges of the lithium business.

The main objective of the first SQM Lithium Ventures Corporate Acceleration Program is to find and promote new technologies and innovations related to lithium. Organized in collaboration with Endeavor, the application process beings on March 6.

At SQM we recognize the value of entrepreneurs and startups and want to accompany them from the earliest stages of development to scaling, while also attracting technological talent and investing in the startups. We also want to be a key component of the economic, social and environmental progress of our country, from Chile to the world, built on a knowledge economy, which highlights the irreplaceable role of entrepreneurship in growth, employment and social mobility, associated with the lithium industry, from Antofagasta to the world.

The "SQM Lithium Ventures Corporate Acceleration Program" is focused on entrepreneurs and startups, both from Chile and around the world, that offer transformative solutions and opportunities to address the challenges of the lithium industry in Chile. The selected entrepreneurs will receive USD 25,000 from SQM, strategic support for defining and scaling their businesses and the possibility of accessing subsequent financing through the SQM Lithium Ventures fund, among other funding opportunities.

Through this initiative we want to be a relevant player for startups and accompany them from the early stages, through a global corporate acceleration program based in Antofagasta (Seed Series) and later through corporate venture capital investment ( Series A), for scaling.

To this end, the focus of this call is to find projects that solve lithium business challenges in one of these three verticals: The first is sustainability, which focuses on finding applied technologies to improve efficiencies in water consumption, loss, evaporation and availability in Chile.

The second is related to efficient processes, which seeks initiatives whose purpose is to improve hydrometallurgical and chemical processes, energy and carbon footprint, which may have applications in lithium production.  

The third, and last key area, is electromobility, a pillar that seeks technologies or innovations that increase added value, social impact and speed of adoption, among others, of this market.

Entrepreneurs who apply may have initiatives, ideas or projects. They do not need to be incorporated or have sales.

Application and Selection Process

After the application period, a jury made up of SQM business specialists and Endeavor business design experts will pre-select 25 entrepreneurs or startups, of which up to 10 will be part of the final program. They will be accompanied by SQM experts and Endeavor mentors through mentoring sessions and workshops, with the aim of developing their value propositions and business models and being able to measure the impact on the challenges of the lithium business.

In this process, participants will access a Investment Readiness, to support them in the key factors for success in business development; a Advisory Board with technical mentors from SQM and Endeavor's global network; Business Strengthening through workshops and academies; access to the Community and Networking, instances to exchange experiences and good practices; and access to a Financing Network local and global for later stages. They will also be able to participate in visits to SQM plants and the Salar de Atacama, among others. Subsequently, the participants must present their projects in a Demo Day, this being the last instance in which the entrepreneurs will have the opportunity to detail how their proposals provide solutions to the future challenges posed and how they project the relationship with SQM.

Capital Fund to Strengthen the Entrepreneurial Ecosystem

SQM Lithium Ventures, an unprecedented initiative in the country that seeks to accelerate entrepreneurship in its different stages in the Antofagasta Region, Chile and the world, was launched at the end of 2022.

This corporate venture capital fund was launched in Antofagasta, a region that will play a leading role as a natural laboratory, recognized for its high potential for business development and scaling. 

"At SQM we are betting on a corporate venture capital fund to accompany entrepreneurs from the earliest stages to the scaling phases," says María de los Ángeles Romo, director of SQM Corporate Venture of the company's Lithium Vice Presidency . “The value of the link with entrepreneurs, with technology and startups allows us as an organization to have a faster reaction to the challenges that the market demands of us, such as the reduction in the use of water, new applications for lithium and processes associated with performance and electromobility and value-added initiatives. In this way, as a company we will be more prepared to solve problems at a global level, with a territorial and sustainable approach ”, she concludes.    

Gonzalo Yun, manager of Endeavor Atacama, highlighted: "We appreciate that SQM, a company with a regional presence, but with a global impact in the development of non-metallic mining, seeks solutions and development in three areas, which are lithium technology, electromobility and water management. Endeavor's role will be to link a select group of global entrepreneurs to the region, through strategic support with our network of mentors in various areas, including strategic planning, technological development and support for raising capital. It is key to strategically support this group of entrepreneurs from the region but with a global perspective, given that the lithium industry has international impact and importance."

The application process begins on March 6 and will run until April 7.

Entrepreneurs may apply directly through a form available on the SQM website, from where they can download the program rules: Apply here

For more information, questions or comments, write to us at: sqmlithium@sqm.com

We are facing a unique opportunity, in a short window of opportunity, to overlap the world of ventures with technologies associated with lithium for the businesses of the future, speed up the industry and become a relevant player in the articulation of a new industry, from Chile, and particularly from Antofagasta, to the world.

.

SQM and LG Energy Solution (LGES), leading companies in the production of lithium and batteries respectively, have taken a step further in terms of innovation and technology after signing a memorandum of understanding to strengthen their business relations. As part of the agreement, both companies commit to investigate and develop joint investment projects at different stages of the electro-mobility industry value chain, and contribute decisively to a more sustainable world. This deal supplements the standing lithium supply agreement between the parties.

Potential joint investment projects include the production of cathodes and lithium hydroxide, as well as recycling projects in strategic locations, which will be studied in greater detail by SQM and LGES. Among these, the agreement to discuss the construction of a cathode material production plant in Chile.

In this regard, the General Manager of SQM, Ricardo Ramos, stated that “this agreement consolidates our commitment to the development of world-standard lithium products, with high added value and in line with the sustainability of our operation and respect for our environment. We are proud that a technological company of the prestige and relevance of LGES trusts us to innovate in Chile and thus continue contributing to the progress of our country”. 

LG is today a world leader in battery production with 30 years of experience in advanced battery technology. In response to the MOU, Myung Hwan Kim, the company's CPO, stated that:

“SQM is a valuable business partner for LG Energy Solution. By joining forces, we look forward to further extending our long-standing collaboration that will keep us in a leadership position in the dynamic sector of secondary batteries, as well as in sustainable growth.”

Lithium carbonate and lithium hydroxide are an essential input in the production of the cathode material contained in the batteries used in electric cars. SQM manufactures both products entirely in Chile, starting with the extraction and concentration of brines high in lithium content in the Salar de Atacama, which are then transported to its facilities located on the outskirts of the city of Antofagasta, where it is located. the largest lithium carbonate and lithium hydroxide production plant in the world, where they are processed and refined to the quality standards required by the industry. SQM's production process is characterized by having one of the lowest carbon, water and energy footprints in the lithium industry.

E-Truck:

ENEL X AND SQM BRING TO CHILE THE FIRST ELECTRIC TRUCK TO OPERATE IN THE GRAND MINING

• With a range of 200 kilometers and 28 tons of weight, the first electric mining truck in Chile will operate at SQM's sites in the Antofagasta Region, with the purpose of testing the technology and thus progressively replacing the large tonnage trucks that operate with diesel.

• Each electric mining truck of these characteristics can stop emitting about 12 tons of CO2 per year.

With the aim of testing its autonomy of movement, work capacities and operability, Enel X and SQM bring to Chile “E-Truck”, the first large-tonnage electric truck that will provide services to the country's large mining industry.

It is a 28-ton electric truck that will operate between SQM's sites in the Antofagasta Region, for which Enel X will install, together with the mining company, a high-power charger, unique in Chile.

It is expected that the new “E-Truck” for mining will carry out routes of 86 kilometers per section, from the Coya Sur plant, located in María Elena, to the port of Tocopilla, estimating a monthly route of more than 7.500 kilometers, ceasing to emit approximately 12 tons of CO2 per year. 

The project seeks to test the autonomy of electric mining trucks and their constructive capabilities to work at the same level as a diesel-powered mining truck with similar characteristics. In addition, the truck operation will be validated together with its high-power charging infrastructure, and how it adapts to the normal operating schedule of the plant, its tasks and its response to the saline environment of the area.

Enel X and SQM developed a financial leasing model for the purchase of the electric truck and the installation of 1 150kW charging point that allows a 100% charge in 3 hours. The charging infrastructure will be installed at the Coya Sur plant in María Elena, guaranteeing an autonomy of close to 200 kilometers.

José Miguel Berguño, SQM Vice President of Nitrate Operations, highlighted that: “This initiative is part of our Corporate Sustainability Plan and that aims, among other environmental goals and commitments, to become carbon neutral in 2030 for the lithium business. For us this is an important milestone as one of the world leaders in the production of lithium, a key input for the development of electro mobility; whose initiative joins others such as the installation of an off-grid electric station at the Carmen Lithium Chemical Plant, and the incorporation of mobile electrical maintenance workshops, a pioneering initiative in national mining ”.

“The incorporation of the first large-tonnage electric truck for mining represents a new milestone in the development of electromobility in Chile, which we are proud to lead together with our partners from SQM. This step is a fundamental piece to move towards an increasingly clean energy matrix, and that also contributes to decarbonize and electrify the main productive sector of the country, said Karla Zapata, general manager of Enel X Chile.

The first high-tonnage electric truck to operate in Chile’s large-scale mining industry is a 28-ton Yutong ZKH5310ZLJP6BEV with a 422 kWh battery pack.

If the project is successful, It would make possible the expansion of the initiative by incorporating the Salar de Atacama - Carmen Lithium Chemical Plant route, which is the route with the highest traffic for the lithium process that has 230 trucks in service. The total potential for the replacement of diesel trucks to large-tonnage electric trucks at SQM's sites is 320 units, 90 of which are on the route of the first truck, which would be carried out in a period of 5 years.

Enel X has smart charging solutions, which aim to meet the different needs of customers through the implementation of various technologies that allow vehicle batteries to be charged in different formats, at different speeds and in different places. These are modular, scalable and turnkey solutions designed for individuals, companies, institutions and industries.

The contest is aimed at all R&D centers, universities, SMEs, startups, among others, that have proposals that contribute to advancing electromobility and energy storage. Applications will be received from Monday, September 27 to October 24, 2021 through the website https://www.openinnspiral.com/maslitiomenoshuella and contemplates a prize of USD 100 to be distributed among the first three places.

Ehe promotion of clean and renewable energies responds to current environmental challenges and public awareness by contributing to curbing climate change and building a more sustainable world for new generations. In this area, SQM has made it a priority to contribute to carbon neutrality through its participation as a global supplier of sustainable lithium.

The company has historically been an innovator, and is also a leader in lithium production. This makes SQM open today a call for Open Innovation called "More Lithium, less footprint", which will aim to find innovative solutions that bring electromobility and stationary energy storage closer to people.

The proposal is part of the robust sustainability plan with specific goals that SQM presented in 2020 and which contemplates reducing the consumption of continental water in all its operations by 40% by 2030 and 65% by 2040; reduce the extraction of brine from the Salar de Atacama by 50% by 2030, a goal that began last year with an immediate reduction of 20%; and be carbon neutral in all its products by 2040, and in the case of Lithium, Potassium Chloride and Iodine by 2030.

In this regard, Pablo Altimiras, Senior Vice President of Lithium and Iodine Business at SQM, argued that “for SQM it is very important to contribute to the sustainable development of the country and improve the quality of life of Chileans. That is the fundamental reason why we are promoting innovation in the use of lithium-ion technologies through this call, which contemplates and seeks to discover new paths related to electromobility and storage systems, particularly that tend to solve situations of scarcity in communities or extreme conditions ”.

The call is made with the support of INNSPIRAL -accelerator of corporate innovation- and goes aimed at all R&D centers and universities, SMEs, startups, and initiatives under development, that have proposals that contribute and generate a positive impact on related initiatives.

In this context, it is that innovative proposals are sought with social and environmental impact that respond to specific challenges, within two macro themes. On the one hand, electromobility proposals that promote its development in Chile, preferably those that generate value in remote, isolated or vulnerable sectors of the country, contributing to an accessible and more energy efficient transport. On the other hand, it is expected to receive proposals for stationary storage that extend the use of storage technologies in the same preferred sectors previously mentioned, which do not have access to the electricity grid or have intermittent supply, in order to promote self-generation and self-consumption.

Applicants compete for a prize of USD 100 to be distributed among the first three places (USD50 for first place; USD30 for second place and USD20 for third place), in addition to support for the development of a winning business pilot and executive mentoring with SQM experts.

Applications and bases are found on the website https://www.openinnspiral.com/maslitiomenoshuella,. The call will be open from September 27 to October 24, 2021.

Santiago, Chile. April 19, 2021.- Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) announced that it has reached a long-term agreement to supply lithium hydroxide to Johnson Matthey (JM), a global leader in sustainable technologies and a fellow Global Battery Alliance member.

Lithium hydroxide is a critical raw material in eLNO®, the Cathode Active Materials (CAM) produced by JM. Securing long-term access to lithium hydroxide with a fully integrated lithium producer such as SQM, is a key milestone in JM’s battery material expansion plans in Europe.

The supply agreement which will run from 2021 to at least 2028, will support the production of eLNO® at JM's planned CAM production facilities in Poland and Finland. The contract will provide enough lithium hydroxide to power approximately 500,000 full electric vehicles.

Ricardo Ramos, SQM's Chief Executive Officer, commented, “We are very pleased to announce the Signing of this contract as it is just one result of the effort we have made to increase lithium production in a sustainable way. We have a strong commitment to the important transition to zero- carbon transport. Last year, we announced our ambitious goal to produce carbon neutral lithium products by 180,000. We are the first lithium producer to join IRMA as a pending member and we believe this along with our own internal efforts will helo ensure the most comprehensive implementation of strict standards for sustainable lithium production in the Salar de Atacama in Chile. We are working on a major lithium expansion plan to reach 30,000 and 2030 metric tons of lithium carbonate and lithium hydroxide, respectively. These expansions will be done simultaneously with our efforts to reduce our environmental footprint by cutting our brine extraction and freshwater consumption in half by XNUMX. Additionally, we continue the work in Australia to develop our lithium hydroxide project with Wesfarmers”.

Christian Gunther, CEO of JM Battery Materials added: “This long-term lithium hydroxide agreement builds on our current relationship with SQM and ensures the continued supply and traceability of a key raw material for our customers. We are very pleased to be able to work with SQM, another member of the GBA, to supply sustainable cathode materials to the market.”

JM and SQM will continue to build on their existing relationship with this new partnership and will be exploring synergies and shared goals between the two companies.

About SQM

SQM is a global company that is listed on the New York Stock Exchange and the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A). SQM 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. We aim to maintain our leading world position in the lithium, potassium nitrate, iodine and thermo-solar salts markets by:

- Ensuring access to the best assets related to our Current business lines by expanding our global presence; - Actively searching for attractive minerals allowing us diversification opportunities to replicate and expand our existing mining capacities; - Strengthening our operational, logistical and commercial excellence process from beginning to end, while looking to be a cost leader; and - Maintaining a conservative financial policy which allows us to successfully endure economic cycles that could impact the markets in which we sell.

We are a company built and managed by a culture based on excellence, safety, sustainability and integrity. We work every day to expand this culture through the attraction, retention and development of talent as well encouraging an inclusive and diverse work environment ensuring the unique knowledge and innovation needed to sustain our business. We strive for safe and accident-free operations by promoting conduct that favors the physical safety and psychological well-being of everyone who works directly and indirectly with the Company.

We position ourselves as leaders in sustainability and commit to a sustainable future where we constantly work to responsibly manage natural resources, protect human rights, care for the environment, form close and trusting relationships with our neighboring communities and create value. Within these communities, we support projects and activities with a focus on education, business development, and protection of the environment and historical heritage. We create value for our 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. We will continue to create value for all of Our stakeholders through responsible management of natural resources, sustainable expansion projects and improvement of our existing operations, with a focus on minimizing our environmental impacts by reducing our carbon, energy and water footprints and working together with our shareholders, employees, customers, suppliers and communities.

For more information, contact:
Gerardo lllanes 56-2-24252022 / gerardo.illanes@sqm.com
Kelly O'Brien 56-2-24252074 / kelly.obrien@sqm.com
Irina Axenova 56-2-24252280 / irina.axenova@sqm.com

To contact SQM Communications, contact:
Maria Ignacia Lopez / ignacia.lopez@sqm.com
Pablo Pisani / pablo.pisani@sgm.com
Tamara Rebolledo / tamara.rebolleda@sqm.com (North Zone)

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the tax haven provisions of the US Private Securities Litigation Reform Act of 1995. Projections are identified by the use of words such as: 'anticipate', 'plan or plan', 'believe', 'estimate', 'expect', 'strategy', 'should', 'should', and other similar references to periods in the future. Examples of projections include statements we make regarding the Company's capital expenditures, sources of financing, the Sustainable Development Plan, the Company's business future, its future economic performance, its anticipated profitability, its revenues and expenses. , or any other financial information, anticipated cost synergies and growth of business lines or products and services.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are estimates that reflect the best judgment of SQM management based on currently available information. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are outside of our control and could cause actual results to differ materially from those stated in such statements, including our ability to successfully implement the Sustainable Development Plan. Therefore, you should not rely on any of these forward-looking statements. Readers are referred to the documents filed by SQM with the United States Securities and Exchange Commission, specifically the most recent annual report on Form 20-F, which identifies other important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to SQM on the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise, except as required by law.