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.
