Sqm Corfo Agreement

Roskill`s view: Renewing the SQM license and allowing the expansion was a bit inevitable given what Chile could lose, but it was clearly catalyzed by the recent change of government. The quota increase allows SQM to triple its production in the Salar de Atacama to 216,000 tpy LCE, from 60,000 tpy LCE, which, together with the expected capacity increases at the Albemarle plants in the Atacama and Corfos` development plans for Salare Maricunga and Pedernales, could again make Chile the largest lithium producer. It is possible that the Corfo-SQM agreement could open up Chile`s lithium sector after years of obstruction, and Corfo is already advancing Chile`s ability to dominate the market in the future. Roskill expects SQM to have the capacity in Chile in addition to its investments in Argentina at Cauchari and in Australia at Mt. Hollande will increase with the aim of maintaining a market share of 25%. This would mean that maximum capacity will be reached around the mid-2020s. «The quantities remain the same as those allowed by the Environment Agency,» the company replied. Pending the new agreement, all the lithium in the brine had not been processed, as it would have exceeded the lithium quota, Corfo added. The 2019 Corfo-SQM agreement defines certain commitments, including a contribution of $13,171,294, or 1.7% of our revenues during the period.

SQM is expected to contribute 1.7% of its annual turnover until 2030, when the CORFO agreement expires at The Salar de Atacama. This contribution, amounting to $13,171,294, is divided into: The municipalities of Antofagasta, San Pedro de Atacama and María Elena have signed agreements setting out the conditions of the annual resources provided by SQM until the expiry of the contract with Corfo in the Salar de Atacama in 2030. In 2018, SQM and Corfo updated their lease in Atacama. This revealed a five-fold increase in lithium extraction…