SQM contracts lithium hydroxide supply with Johnson Matthey
Santiago, Chile. April 19, 2021 – Sociedad Química y Minera de Chile SA (SQM) announced the signing of a long-term contract for the supply of lithium hydroxide to Johnson Matthey (JM) , a leading global company in sustainable technologies and a member of the Global Battery Alliance (GBA), as is SQM.
This agreement ensures the supply of battery-grade lithium hydroxide , a critical raw material in eLNO®, the active cathode material produced by JM.
Contract details and scope
The contract, valid from 2021 until at least 2028, will allow JM to use the lithium hydroxide supplied by SQM in the production of eLNO® at its plants in Poland and Finland.
The agreement provides for a sufficient supply to manufacture approximately 500.000 electric cars . Ricardo Ramos, CEO of SQM, commented:
“We are very pleased to sign this contract because it is a result of all the effort we are making to increase lithium production sustainably. We are strongly committed to the transition to electromobility. Last year we announced our goal of achieving carbon neutrality in our lithium production by 2030. Furthermore, we are the first lithium producer to join IRMA, the world’s most stringent standard for mining, as a pending member.”
Expansion and sustainability in lithium production
SQM projects to reach 180.000 metric tons of lithium carbonate and 30.000 metric tons of lithium hydroxide in Chile, with significant reductions in environmental footprint :
Reduce brine extraction by half by 2030
Reduction of fresh water consumption in the Atacama Salt Flat
In addition, SQM complements this growth with a lithium hydroxide project in Australia , developed together with Wesfarmers, always prioritizing responsible and sustainable mining.
Words from the CEO of JM
Christian Gunther, CEO of JM Battery Materials, noted:
“This long-term lithium hydroxide agreement builds on our existing relationship with SQM and ensures the continuous supply and traceability of a key raw material for our customers. We are very pleased to be working with SQM, another GBA member, to supply sustainable cathode materials to the market.”
Both companies will continue to explore synergies and common goals to deepen their relationship in the battery supply chain.
About SQM
SQM is a global company , listed on the New York Stock Exchange and the Santiago Stock Exchange, that develops and produces essential products for various industries:
- Health
- Nutrition
- Renewable energy
- Technology
Their approach combines technological innovation , operational excellence and sustainability, with concrete goals for reducing carbon, water and energy footprints , while maintaining close relationships with communities and customers.
The company also promotes an inclusive work environment, job security and talent development, seeking to create sustainable value in all its operations and businesses.
Contact and communications
For more information, please contact:
- Gerardo Illanes: +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
For SQM Communications:
- Maria Ignacia Lopez / ignacia.lopez@sqm.com
- Pablo Pisani / pablo.pisani@sqm.com
- Tamara Rebolledo / tamara.rebolleda@sqm.com (North Zone)
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements as provided for under the tax refuge provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Projections are identified by the use of words such as: “anticipate”, “plan”, “believe”, “estimate”, “expect”, “strategy”, “should”, “will”, 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 income and expenses, or any other financial information, anticipated cost synergies, and growth of business lines or products and services.
These projections are neither historical facts nor guarantees of future profitability. Rather, they are estimates that reflect SQM's management based on the information available.
Since these projections are forward-looking, they involve a degree of risk, uncertainty, and other factors beyond the company's control, which could lead to results differing significantly from those expressed in these projections, including our ability to successfully implement the Sustainable Development Plan. Therefore, we recommend that you do not rely entirely on these projections.
We suggest that readers consult 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 relevant risk factors that could cause results to differ from those expressed in the projections.
All projections are based on information available to SQM as of the date hereof. SQM is under no obligation to update these projections, whether due to new information, future developments, or for any other reason, except as required by law.
