Sociedad Química y Minera
A Chilean mining and chemicals company producing lithium, plant nutrients, iodine and industrial chemicals from resources concentrated mainly in the Atacama Desert.
Last updated August 31, 2026
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Overview
Sociedad Química y Minera, commonly known as SQM, is a Chilean mining and chemical company whose principal activities are based on nitrate deposits and brines in the Atacama Desert. Its product portfolio includes lithium carbonate and lithium hydroxide, potassium chloride, potassium nitrate, potassium sulfate, iodine and iodine derivatives, sodium nitrate, industrial salts, bischofite and other specialty chemicals. The company supplies battery-materials manufacturers, fertilizer distributors, pharmaceutical and medical-contrast industries, industrial users, oil and gas operators, glass and ceramics producers, and solar-thermal power projects. SQM was established in 1968 as a mixed company owned by private investors and Chile's state development agency CORFO. It combined assets associated with Compañía Salitrera Anglo-Lautaro and the state-owned Empresa Salitrera Victoria. The new enterprise was intended to reorganize Chile's declining nitrate industry and was given a central role in nitrate exploitation and commercialization. In 1971, the Chilean state acquired full ownership through CORFO. During the 1980s, the company was privatized again under Chile's military government, and control passed to investors associated with Julio Ponce Lerou. The company later expanded beyond its historic nitrate business. It began producing technical-grade potassium nitrate in the early 1990s, listed American depositary shares on the New York Stock Exchange in 1995, and started potassium chloride production from the Salar de Atacama and lithium carbonate production at Salar del Carmen during the second half of the 1990s. Lithium subsequently became one of SQM's most important businesses as demand for rechargeable batteries and electric vehicles increased. The company extracts lithium-rich brine from the Salar de Atacama, concentrates it through solar evaporation, and processes the concentrate into lithium carbonate and lithium hydroxide at facilities near Antofagasta. SQM has internationalized through acquisitions, joint ventures and investments in downstream businesses. Its historical expansion included fertilizer partnerships in India, China and France, an iodine-derivatives relationship with Ajay Chemicals, participation in the Cauchari-Olaroz lithium project in Argentina, and involvement in Australia's Mount Holland project through Covalent Lithium. It also acquired a minority interest in Australian lithium explorer and developer Pirra Lithium in 2023. Some overseas investments were later sold or restructured, including SQM's interest in Cauchari-Olaroz, which was sold to Ganfeng Lithium in 2018. The company's resources and major production facilities remain concentrated in northern Chile, particularly the Tarapacá and Antofagasta regions. Its Atacama operations have generated sustained debate about brine extraction, water balances, biodiversity, indigenous and local interests, and the governance of Chile's strategic lithium resources. In 2023, Chile announced a National Lithium Strategy that changed the institutional framework for future lithium development. Under the resulting arrangement, SQM's lithium mining activities are being transferred to Nova Andino Litio, a public-private joint venture involving state-owned Codelco. This represents a major change in the long-term structure of SQM's Chilean lithium business while the company continues to operate as an international producer of specialty chemicals, fertilizers and battery materials.
History
SQM was created in 1968 as a mixed public-private mining company during a period when Chile was attempting to reorganize its declining nitrate industry. Its initial ownership combined Compañía Salitrera Anglo-Lautaro with CORFO, the Chilean state development agency, and its assets included the operations of Empresa Salitrera Victoria. The company was intended to consolidate production, attract investment and improve the exploitation and commercialization of nitrate resources. In 1971, CORFO acquired the remaining private interest and SQM became wholly state-owned. Nitrate remained the company's historical foundation, but the business faced long-term pressure from competing synthetic fertilizers and changes in global demand. During the privatization process of the 1980s, most state shares were transferred to private investors, with control associated with Julio Ponce Lerou. This period shaped SQM's later ownership and governance structure and became an important part of the company's political and corporate history. SQM began diversifying in the 1990s. A technical-grade potassium nitrate plant started operating in 1993. In 1995, the company listed on the New York Stock Exchange and began producing potassium chloride from brines in the Salar de Atacama. Lithium carbonate production started at Salar del Carmen in 1997. These developments created an integrated production model in which brine concentration generated several commercially useful potassium and magnesium products alongside lithium. The company's international expansion accelerated in the 2000s and 2010s. SQM acquired the Kemira Emirates Fertilizer Company in 2005 and purchased DSM's iodine business in 2006. It formed or developed plant-nutrition joint ventures with partners including Coromandel in India, Qingdao Star in China and Roullier in France. It also entered lithium projects outside Chile. SQM participated in the Cauchari-Olaroz project in Argentina through Lithium Americas, later selling its interest to Ganfeng Lithium in 2018. In Australia, it worked through Covalent Lithium in connection with the Mount Holland project after investing in Kidman Resources; Kidman was subsequently acquired by Wesfarmers. Ownership became more internationally contested in the late 2010s. In 2018, Tianqi Lithium acquired 23.77 percent of SQM from Nutrien. The transaction led to scrutiny because it placed a major Chinese lithium producer among SQM's largest shareholders. Governance arrangements were subsequently negotiated with SQM's key shareholder. The company continued to expand its lithium-related portfolio, including the acquisition of a 30 percent interest in Australia's Pirra Lithium in 2023. SQM's activities have also produced legal, political and environmental controversy. Investigations in Chile examined alleged tax evasion, bribery and improper payments involving people connected with former senior managers. In 2017, the company reached a settlement with U.S. authorities over alleged violations of the Foreign Corrupt Practices Act and related accounting matters. Separately, environmental debate has focused on whether brine extraction affects groundwater and ecosystems around the Salar de Atacama. SQM has cited environmental assessments and monitoring that it says support the sustainability of its operations, while critics and other stakeholders have continued to question water impacts and the adequacy of monitoring. Chile's National Lithium Strategy, announced in 2023, introduced another major turning point. The strategy strengthened the state's role in lithium development and provided for SQM's lithium mining activities to be transferred to Nova Andino Litio, a newly established public-private joint venture involving Codelco. As this transition proceeds, SQM remains an active international producer whose businesses span lithium, iodine, specialty plant nutrition, potassium compounds, nitrate products and industrial chemicals.
- 2023
Chile launches its National Lithium Strategy
[1]The new state framework provides for SQM's lithium-mining activities to move into Nova Andino Litio, a public-private venture involving Codelco.
- 2023
Investment in Pirra Lithium
[1]SQM acquires a 30 percent stake in Australia's Pirra Lithium.
- 2018
Tianqi Lithium becomes a major shareholder
[1]Tianqi Lithium purchases a 23.77 percent stake in SQM from Nutrien.
- 2018
Cauchari-Olaroz interest is sold
[1]SQM sells its interest in the Argentine lithium project to Ganfeng Lithium.
- 2017
U.S. enforcement settlement
[2]SQM agrees to resolve U.S. civil and criminal proceedings related to alleged improper payments and accounting violations.
- 2016
SQM participates in Cauchari-Olaroz
[1]SQM enters the Argentine Cauchari-Olaroz lithium project through Lithium Americas.
- 2006
DSM iodine business is acquired
[1]SQM acquires DSM's iodine-derivatives business in northern Chile.
- 2005
Kemira Emirates Fertilizer Company is acquired
[1]SQM expands its fertilizer and plant-nutrition business through the acquisition of Kemira Emirates Fertilizer Company.
- 1997
Lithium carbonate production begins
[1]Commercial lithium carbonate production starts at Salar del Carmen.
- 1995
New York Stock Exchange listing and Atacama potassium production
[1]SQM lists on the New York Stock Exchange and begins producing potassium chloride from the Salar de Atacama.
Products and positioning
A globally oriented Chilean producer of lithium, iodine, specialty fertilizers and industrial chemicals, with an integrated resource base in the Atacama Desert.
Battery materials · 1997
Lithium compounds
SQM produces lithium carbonate and lithium hydroxide from brine extracted at the Salar de Atacama and processed at Salar del Carmen. The production chain uses solar evaporation to concentrate lithium-bearing brine before removing impurities and precipitating lithium carbonate. Lithium hydroxide is produced through further conversion and serves battery-materials markets, particularly the rechargeable-battery and electric-vehicle industries.
Fertilizers
Specialty plant nutrition
SQM's specialty plant-nutrition portfolio is centered on formulated products, especially potassium nitrate. These fertilizers are marketed for applications requiring controlled nutrient delivery and are sold through international agricultural channels. The business builds on the company's nitrate and potassium resources and includes partnerships and distribution activities in several regions.
Industrial chemicals and fertilizers
Potassium compounds
The company produces potassium chloride, potassium nitrate and potassium sulfate. Potassium chloride is obtained in connection with brine processing and is used in fertilizers and industrial applications including oil drilling. Potassium nitrate is used as a fertilizer and in industrial heat-transfer formulations, while potassium sulfate serves fertilizer and other industrial markets.
Specialty chemicals
Iodine and iodine derivatives
SQM mines iodine-bearing resources in northern Chile and manufactures iodine derivatives through its own facilities and partnerships, including the Ajay-SQM group. Applications include X-ray contrast media, pharmaceuticals, animal health, water treatment and other specialized chemical uses.
Industrial chemicals
Sodium nitrate and industrial nitrates
Sodium nitrate is produced from caliche ore, the historic resource underlying Chile's nitrate industry. It is used in glass, ceramics, explosives and metal-treatment applications. SQM also produces nitrate-based mixtures such as solar salts, which combine sodium nitrate and potassium nitrate for thermal-energy storage in concentrated solar-power systems.
Industrial chemicals
Industrial salts and magnesium products
By-products and associated products from brine concentration include sylvinite, bischofite and sodium chloride. Sylvinite can be used as a reduced-sodium salt substitute, bischofite is used for stabilization, dust control and road de-icing, and ordinary salt serves food, chemical and industrial markets.
Controversies
2017
SQM Affair and foreign-corrupt-practices investigation
Chilean investigations examined alleged tax evasion, bribery and improper payments involving political figures and people connected with former SQM managers. In the United States, the Securities and Exchange Commission and Department of Justice announced a settlement covering alleged violations of the Foreign Corrupt Practices Act and related accounting provisions. The company agreed to pay a penalty to resolve the parallel proceedings.
Environmental controversy over Atacama brine extraction
SQM's lithium extraction has been debated because of possible effects on groundwater, water availability and ecosystems in the Salar de Atacama. The company has commissioned environmental assessments and reported monitoring results, while critics and other stakeholders have disputed whether brine pumping can alter freshwater flows and ecological conditions.
Brand decisions
2023
Transfer of Chilean lithium activities to Nova Andino LitioStrategyBackground
Chile's National Lithium Strategy sought to increase state participation and establish a new institutional model for strategic lithium resources.
Action taken
SQM's lithium-mining activities are being transferred to Nova Andino Litio, a public-private joint venture involving Codelco.
Aftermath
The arrangement is expected to reshape SQM's long-term Chilean lithium structure while leaving the company active in international lithium, fertilizers, iodine and industrial chemicals.
2018
Sale of the Cauchari-Olaroz lithium interestM&ABackground
SQM had entered the Argentine project through Lithium Americas but subsequently changed its international lithium portfolio.
Action taken
SQM sold its share in the project to Ganfeng Lithium.
Aftermath
The transaction reduced SQM's direct participation in the Argentine development while Ganfeng became the relevant strategic partner for the project.
1997
Launch of lithium carbonate productionProduct launchBackground
SQM had developed access to lithium-bearing brines in northern Chile and sought to expand into higher-value specialty chemicals.
Action taken
Commercial lithium carbonate production began at Salar del Carmen using concentrate derived from Salar de Atacama.
Aftermath
Lithium became a core growth business and later positioned SQM among the world's leading lithium producers.
1995
Public-market expansion and entry into Salar de Atacama potassium productionStrategyBackground
SQM was diversifying beyond its historic nitrate base and seeking access to international capital and additional mineral resources.
Action taken
The company listed on the New York Stock Exchange and began producing potassium chloride from Salar de Atacama brines.
Aftermath
The move supported SQM's transformation into a broader specialty-chemicals and fertilizer producer and helped establish the integrated brine platform later used for lithium production.
Recent events
- 2024
SQM reports continued workforce growth[1]
Other
The company reported 8,344 employees in December 2024, compared with 6,081 in December 2021; women represented approximately 22 percent of the workforce.
- 2023
Chile announces a National Lithium Strategy affecting SQM's future operations[1]
Regulation · M&A
Chile's National Lithium Strategy established a new public-private framework for lithium development. SQM's Chilean lithium-mining activities are being transferred to Nova Andino Litio, a joint venture involving Codelco.
- 2023
SQM acquires a minority stake in Pirra Lithium[1]
M&A
SQM acquired a 30 percent interest in Australia's Pirra Lithium, expanding its exposure to Australian lithium exploration and development.
- 2023
SQM acquires a 30 percent interest in Pirra Lithium[1]
M&A
SQM acquired a minority interest in Australian lithium developer Pirra Lithium as part of its international lithium portfolio expansion.
- 2023
Chile's National Lithium Strategy changes the institutional framework for SQM's lithium operations[1]
Regulation
Following Chile's National Lithium Strategy, SQM's lithium mining activities were transferred to Nova Andino Litio, a public-private joint venture involving Codelco.
- 2019
SQM and Tianqi reach a governance agreement[1]
Other
Tianqi Lithium and SQM's principal shareholder reached an agreement concerning governance arrangements after Tianqi's acquisition of its stake in SQM.
- 2018
Tianqi Lithium acquires a significant stake in SQM[1]
M&A · Regulation
Tianqi Lithium purchased a 23.77 percent interest in SQM from Nutrien, creating a major new shareholder and prompting scrutiny of governance and competition issues in the global lithium sector.
- 2018
Tianqi Lithium acquires a major stake in SQM[1]
M&A · Other
Tianqi Lithium purchased a 23.77 percent interest in SQM from Nutrien, changing the company's shareholder structure and prompting later governance discussions.
SQM faces continuing scrutiny over Atacama brine extraction[1]
Regulation · Other
The company's lithium operations have remained the subject of environmental discussion concerning groundwater, water consumption, biodiversity and the effects of brine pumping in an arid salt-flat ecosystem.
Sources9 sources
- 1Sociedad Química y Mineraen.wikipedia.org
- 2SEC announces resolution of SQM foreign-corrupt-practices investigationsec.gov
- 3SQM Reports Earnings for the Nine Months Ended September 30, 2019prnewswire.com
- 4SQM Reports Earnings For The Second Quarter Of 2020prnewswire.com
- 5SQM Reports Earnings For The Third Quarter Of 2020prnewswire.com
- 6SQM Reports Earnings For The Three Months Ended March 31, 2020prnewswire.com
- 7SQM Reports Earnings for the Three Months Ended March 31, 2021prnewswire.com
- 8SQM Reports Earnings for the Twelve Months Ended December 31, 2019prnewswire.com
- 9SQM Reports Earnings For The Twelve Months Ended December 31, 2020prnewswire.com
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