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, JIM s CEO of Battery Materials added, “This multi-year agreement for the supply of lithium hydroxide builds on our existing relationship with SQM, guaranteeing security of supply and traceability of this key raw material to our customers. We are delighted to be working with our fellow GBA member, SQM, to deliver 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.
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.
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