Sociedad Química y Minera de Chile S.A.
Sociedad Química y Minera de Chile S.A. produces and sells specialty plant nutrients, and iodine and its derivatives in Chile, Latin America, the Caribbean, Europe, North America, Asia, and internationally. It offers potassium nitrate, sodium nitrate, specialty blends, and other specialty fertilizers under the Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, Prop, and Prohydric brands. The company also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, it produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for, secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, the company produces potassium sulfate; and potassium chloride which are used to nourish various crops. Additionally, it produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special ty glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors, as well as sells third-party fertilizers. Sociedad Química y Minera de Chile S.A. was founded in 1926 and is headquartered in Santiago, Chile.
What does it do?
SQM is a Chilean mining company that digs up some of the world's most in-demand minerals from the Atacama Desert — one of the driest and most mineral-rich places on Earth. Their biggest product is lithium, which goes into the batteries that power electric vehicles and smartphones. They also produce fertilizers that farmers use to grow crops, and iodine, which shows up in everything from X-ray dyes to disinfectants. Think of them as a raw material supplier to the EV revolution, global agriculture, and the healthcare industry all at once.
SQM sits on one of the largest and cheapest lithium reserves in the world at a time when demand for EV batteries is reshaping the entire auto industry. Governments from the US to Europe are pushing for electric vehicles, which means the need for lithium is expected to keep growing for years. Whoever controls the cheapest supply of lithium has enormous leverage — and SQM is right at the center of that.
How does it make money?
SQM makes money by selling lithium, specialty fertilizers, iodine, and industrial chemicals. Lithium has become the dominant revenue driver — at peak lithium prices in 2022 and 2023, it accounted for the majority of their roughly $4.6 billion in annual revenue. They mine raw materials from salt flats in Chile, process them into usable products, and sell to battery makers, automakers, and agricultural businesses around the world. Net income came in at $0.6 billion on that $4.6 billion in revenue, reflecting the impact of falling lithium prices from their historic highs.
Why do investors care?
The core investment idea is simple: the world needs more lithium to build more EV batteries, and SQM has some of the cheapest lithium in the world to sell. If EV adoption accelerates faster than expected, lithium prices could recover from their recent drop and SQM's profits would jump significantly. Investors also like that SQM is not a one-trick pony — fertilizers and iodine provide steady income even when lithium prices are weak. The key question is whether lithium prices stabilize or keep falling as new mines open up globally.
Deep Dive
MemberA full investor briefing on Sociedad Química y Minera de Chile S.A. — history, leadership, risks, and outlook.