Financial Data and Key Metrics Changes - The company reported net sales of $1.4 billion for Q4 2025, a 16% increase year-over-year, with adjusted EBITDA of $269 million, up 7% year-over-year [5][9] - For the full year 2025, net sales reached $5.1 billion and adjusted EBITDA was $1.1 billion, meeting or exceeding previous outlook considerations [5][6] - The adjusted EBITDA margin decreased by approximately 150 basis points compared to the previous year, influenced by unfavorable foreign exchange and lower specialties margins [9] Business Line Data and Key Metrics Changes - Energy storage segment saw a 14% increase in full-year volumes to 235,000 tons LCE, with Q4 net sales up 23% year-over-year and adjusted EBITDA up 25% [19] - Ketjen's net sales increased by 14% year-over-year, with adjusted EBITDA growing 39%, driven by higher sales volumes [16] - Specialties business experienced a 5% increase in net sales but a 6% decline in adjusted EBITDA due to margin compression in lithium specialties [17] Market Data and Key Metrics Changes - Global lithium demand for 2025 was 1.6 million tons, up more than 30% year-over-year, with expectations for 2026 demand to rise to 1.8-2.2 million tons, a 15%-40% increase [23][24] - Stationary storage demand grew over 80% in 2025, with significant contributions from China and North America [25][26] - European EV demand increased by 34% year-over-year, while U.S. EV demand slowed due to the removal of consumer tax credits [24] Company Strategy and Development Direction - The company is focusing on cost and productivity improvements, targeting an additional $100 million-$150 million in savings for 2026 [6][32] - Strategic decisions include idling operations at the Kemerton lithium hydroxide plant to enhance financial flexibility and preserve optionality [7][32] - Investments in top-tier mining resources and exploration interests remain critical to the company's strategy [8] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for differentiated pricing to support Western supply chains, particularly in comparison to Chinese operations [41] - The company anticipates continued growth opportunities at Greenbushes and Wodgina, with a cautious approach to capital spending [38][52] - The outlook for 2026 includes expectations for stable capital spending and potential for meaningful free cash flow if current lithium pricing persists [6][22] Other Important Information - The company closed the sale of its stake in the Eurecat joint venture and expects to finalize the sale of a majority stake in Ketjen, generating approximately $660 million in pretax proceeds [7][16] - The company ended 2025 with $1.6 billion in cash and expects to maintain an investment-grade credit profile [26] Q&A Session Summary Question: How should we think about volume growth beyond 2027? - Management indicated that while 2026 volumes are expected to be flat, growth opportunities remain at Greenbushes and Wodgina, with potential investments needed based on market conditions [38] Question: How much higher cost is the Kemerton asset compared to Chinese conversion assets? - The cost structure difference is approximately $4 to $5, with ongoing costs to maintain the idled asset [41] Question: Can you comment on the closure of Chinese lithium capacity? - Management noted that about 30,000-50,000 tons of capacity came offline in 2025, influenced by regulatory actions and demand dynamics [44][46] Question: What is behind the decrease in Specialties adjusted EBITDA for 2026? - The decrease is attributed to lack of demand growth in certain markets and a decline in lithium specialties prices following previous peaks [48] Question: How long do prices need to stay at $20/kg plus before considering investments? - Management indicated a more conservative approach to capital spending, focusing on smaller, incremental projects with quick returns [52]

Financial Data and Key Metrics Changes - The company experienced a favorable pricing environment for lithium, with realized average prices increasing compared to the previous period [4][5] - The total capital expenditure (CAPEX) for 2025-2027 is estimated at $2.7 billion, reflecting a focus on increasing production capacity and maintaining low costs [7][44] Business Line Data and Key Metrics Changes - Lithium sales volumes reached the highest in SQM's history, supported by low costs and strong efficiencies at Atacama operations [5] - Iodine prices remained high, averaging close to $73 per kilogram, with a balanced supply-demand environment [6][7] - The specialty plant nutrition business showed sustainable growth in both volumes and revenues compared to the previous year [6] Market Data and Key Metrics Changes - Global lithium demand is expected to exceed 1.5 million metric tons in 2025, representing over 25% growth, driven by strong EV sales and energy storage systems [11][51] - China is projected to maintain a significant lead in EV markets with a 30% year-on-year growth, accounting for over 60% of global EV sales [11] Company Strategy and Development Direction - The company is focused on high-quality production, increasing volumes, and advancing cost reduction initiatives [4][5] - The construction of a seawater pipeline is over 80% complete, which will enhance iodine production capacity [6] - The company is expanding its iodine production capacity through a new operation in MarÃa Elena, adding 1,500 tons of iodine capacity [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the lithium market despite its volatility, expecting the positive pricing trend to continue [4] - The company anticipates robust commercial activity in the fourth quarter, with strong demand fundamentals for lithium [5] - Management highlighted the importance of maintaining a strong balance sheet and commitment to investment-grade ratings [29] Other Important Information - The joint venture with Codelco received approval from China's Antitrust Authority, with expectations to advance the partnership by the end of the year [8] - The company is evaluating the expansion of production capacity in China, with plans to increase lithium sulfate production [25] Q&A Session Summary Question: Insights on lithium demand, particularly in China - Management noted improved demand expectations for 2025, driven by strong EV sales and energy storage systems, with China leading in EV markets [11] Question: Production expectations for lithium in Chile and Australia - The company expects to produce close to 230,000 tons of lithium from Atacama, with an increase in spodumene concentrate sales projected [15][16] Question: Impact of Kwinana Hydroxide Conversion Plant on pricing - Management indicated that the international price for lithium is expected to rise closer to the Chilean price as the Kwinana plant ramps up production [18][19] Question: Update on the Codelco joint venture - The agreement with Codelco is expected to be finalized soon, with a dividend to be paid based on the tonnage belonging to Codelco [24][61] Question: Expectations for iodine market conditions - Management expects tight supply and demand conditions for iodine to persist, with prices likely to remain above $70 per kilogram [56]