Committed to caring for the environment, at SQM we work on production processes under strict national and international standards. For this reason, one of the most important actions of the operation is to measure the impact of the company's lithium production, both on the environment and on communities and areas of operation. It is the Life Cycle Analysis, an environmental management tool that objectively, methodically, systematically and scientifically analyzes the environmental impact generated by a process or product during its entire life cycle.
LITHIUM LIFE CYCLE
One important item we measure is the carbon footprint of our operations and products. In the case of lithium, out footprint is quantified using strict, international standards, specifically the prestigious ISO 14040 and 14044. For this, we retain the services of Swedish engineering firm Afry to measure three variables: energy use, water consumption, and CO2 from operations. The results are used to assess different processes at SQM's own operations and communicate them, as the case may be, to different stakeholders. The Life Cycle Assessment ISO 14040 and 14044 standards are used for the calculations in these studies.
Additionally, we collaborate with Argonne National Laboratory (ANL) using an open source model for emissions calculations known as GREET. This is used to measure the levels of CO2, energy and water consumption in order to keep our emissions up to date and controlled. This method is used to calculate our emissions contribution to the ithium ion battery value chain. This arrangement has a reputational advantage because the, laboratory belongs to the United States Department of Energy, which provides support and credibility to data resulting from its studies.
SQM's lithium production process has the lowest energy consumption compared to spodumene-based lithium production. This statement is based on the fact that during 2018 approximately half of the world's lithium production came from spodumene and the other half from brine, as is the case of SQM Lithium, and according to a life cycle analysis carried out by SQM and the consulting firm Afry, SQM has low energy consumption.
During 2018, lithium carbonate and lithium hydroxide produced from brine and spodumene were consumed almost in equal parts and, according to our estimates, we can say that only 1/3 of the total carbon footprint was generated by the production based on brine such as SQM Lithium. That means SQM's lithium has one of the lowest carbon footprints in the world.
* Afry SQM study (2018 world data). The comparison was made with Australian spodumeno, refined in China.