Financial Data and Key Metrics Changes - In Q2 2025, the company experienced a revenue decline of over 3% year-on-year due to lower lithium prices compared to earlier in the year [6][9] - The company expects yearly sales volume from Chilean operations to increase by at least 10% versus 2024 [8][9] Business Line Data and Key Metrics Changes - Iodine was the most profitable segment in Q2 with an adjusted gross margin of 57%, contributing over 50% to total company gross profit [9] - Sales volume for the Chile lithium division reached 51,700 metric tons in Q2, similar to Q2 last year, with expectations for Q3 sales to be at least 10% higher than Q2 [32][70] Market Data and Key Metrics Changes - Strong demand growth for lithium is noted, particularly from the EV sector in China and Europe [6][7] - Prices for lithium carbonate in China have been recovering, with expectations for Q3 prices to be higher than Q2 [32][33] Company Strategy and Development Direction - The company is confident in capturing strong fundamentals in the lithium market while maintaining solid results across all business segments [10] - The strategy remains focused on producing at full capacity and expanding in line with expected market growth [33] Management Comments on Operating Environment and Future Outlook - Management noted a change in market dynamics with recent price improvements and strong demand growth [6][8] - The company is optimistic about the iodine market, expecting solid fundamentals to continue despite supply constraints [20][51] Other Important Information - The Tijuana refinery is now complete and has delivered its first product on spec, with a ramp-up underway to produce 50,000 metric tons of lithium hydroxide annually [8] - The company is working on the Salar Futuro project, with environmental studies expected to be submitted next year [43][44] Q&A Session Summary Question: Midterm or long-term goals for SPN - The company aims to grow its SPN business by adding services and products while maintaining solid margins [12][14] Question: Expansion of Mount Holland - The expansion decision will not be made in 2025, with ongoing engineering studies and approvals [15][16] Question: Iodine price sustainability - Demand for iodine is expected to grow, but supply constraints may limit growth [18][20] Question: Mt. Holland mine economics - Current production costs are not reflective of long-term projections, but the company remains profitable [39][40] Question: Update on Codelco deal - The process with Codelco is moving positively, with expectations for completion in the coming months [54][66] Question: Current lithium inventory levels - The company expects to have close to 230,000 metric tons of lithium inventory, aligning with projected sales [69][70]

Financial Data and Key Metrics Changes - SQM reported the highest first quarter lithium sales volumes in the company's history, with a 20% year-on-year increase, driven by strong demand from the electric vehicle market in China and Europe [5] - Average realized prices for lithium in Q2 2025 are expected to be lower than in Q1 2025 due to recent price declines [6][56] - The iodine business experienced record average prices amid tight supply and steady demand, particularly for X-ray contrast media applications [8] Business Line Data and Key Metrics Changes - Lithium sales volumes increased significantly, while the potassium business saw a substantial decrease in volumes compared to the previous year due to a strategic focus on high lithium content brines [10] - Specialty Plant Nutrition (SPN) sales volumes grew healthily, with an upward trend in prices driven by strong demand for potassium chloride [9] Market Data and Key Metrics Changes - The global lithium demand is expected to grow by 17% in 2025, with SQM's sales projected to grow by approximately 15% year-on-year [28][61] - The market is currently experiencing oversupply, which has led to price pressures, particularly in China [68] Company Strategy and Development Direction - SQM is focused on expanding lithium production capacity to meet growing demand, with plans to reach 240,000 metric tons of lithium carbonate and 100,000 metric tons of lithium hydroxide [8] - The company is investing in operational efficiencies and capacity expansions across its business lines, including iodine and specialty plant nutrition [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the lithium market, despite current pricing challenges, and believes that the price environment is not sustainable for the industry [82] - The company is well-prepared to take advantage of future market recoveries, with a strong balance sheet and low-cost production capabilities [18][84] Other Important Information - SQM's dividend policy stipulates a distribution of 30% of net income for 2025, with no interim dividends planned for the first quarter [46] - The Mt. Holland project is progressing well, with expectations of cash-positive operations even at current prices [80] Q&A Session Summary Question: Expectations for operating cash flow in Q2 - Management indicated that they are far from breakeven costs and expect to be significantly above that in Q2 [14][15] Question: Impact of lower lithium prices on capital structure - Management reassured that the strong balance sheet allows for continued investment in growth projects despite lower operating cash flow [16][18] Question: Current political noise in Chile regarding Codelco JV - Management described the situation as "noise" and confirmed that the transaction is proceeding as planned, with execution expected in the second half of the year [21][25] Question: Lithium sales growth forecast - Management maintained that they have not updated their annual volume forecast for 2025, but expect similar or slightly lower volumes in Q2 compared to Q1 [28] Question: Pricing dynamics in China - Management noted that they have various pricing mechanisms with customers, but could not provide specifics due to confidentiality [34] Question: CapEx requirements for growth plans - Management stated that the CapEx plan will be reviewed and shared with the market in the upcoming months, with no updates currently available [52] Question: Production costs and expectations - Management confirmed that they expect to reduce operational costs during the year and are implementing several cost reduction initiatives [77] Question: Outlook for Mt. Holland project - Management indicated that the Mt. Holland operation is cash positive and progressing as planned, with a focus on ramping up production [80][92]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved the highest first-quarter lithium sales volumes in its history, with a 20% year-on-year increase, driven by strong demand from the electric vehicle market in China and Europe [7] - Average realized prices for lithium in Q2 2025 are expected to be lower than in Q1 2025 due to recent price declines [8][57] - The iodine business experienced record average prices amid tight supply and steady demand, particularly for X-ray contrast media applications [9] Business Line Data and Key Metrics Changes - Lithium sales volumes increased significantly, while the potassium business saw a reduction in volumes as part of a strategy to prioritize high lithium content brines [11] - Specialty Plant Nutrition (SPN) sales volumes grew at a healthy pace, with an upward trend in prices due to strong demand for potassium chloride [10] Market Data and Key Metrics Changes - The company maintains a view that global lithium demand will grow by 17% in 2025, with SQM's sales expected to grow by 15% year-on-year [29][62] - The market is currently experiencing oversupply, but long-term demand is expected to remain strong, particularly in the electric vehicle sector [62][88] Company Strategy and Development Direction - The company is focused on expanding lithium production capacity to 240,000 metric tons of lithium carbonate and 100,000 metric tons of lithium hydroxide [9] - Investment in operational efficiencies and capacity expansions is ongoing, with a commitment to sustainable growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the lithium market, despite current pricing pressures [12][88] - The company believes that the current low price environment is unsustainable and anticipates a recovery in prices in the near future [84][86] Other Important Information - The dividend policy established by the board is to distribute 30% of net income for 2025, with no interim dividends planned for the first quarter [48] - The Mt. Holland project is cash positive even at current prices, with ongoing ramp-up efforts [82] Q&A Session Summary Question: Expectations for operating cash flow in Q2 - Management does not expect to be close to breakeven in Q2 and anticipates being significantly above that [15][16] Question: Impact of lower lithium prices on capital structure - The company has a strong balance sheet and does not foresee financial constraints affecting future projects [19] Question: Current political noise in Chile regarding Codelco JV - Management described the situation as "noise" and confirmed that the transaction is progressing as planned [22][26] Question: Lithium sales growth forecast - The company has not updated its annual volume forecast but expects similar or slightly lower volumes in Q2 compared to Q1 [30] Question: Pricing dynamics in China - The company has various pricing mechanisms with customers, and specific details cannot be disclosed [36] Question: CapEx requirements for growth plans - The CapEx plan will be reviewed and shared with the market in the upcoming months [53] Question: Production costs and expectations - The company expects to reduce operational costs and maintain cost leadership in the market [78] Question: Outlook for Mt. Holland project - The Mt. Holland operation is cash positive, and the project is on track despite higher costs during ramp-up [82][93]