SQM SUSTAINABILITY PLAN

With clear commitments, deadlines and an investment of over US$200 million, SQM announced a robust plan that deepens its commitment to the environment, the sustainability of its operations and the entire value creation cycle in which it participates.

One of the main initiatives included in the Sustainability Plan is the reduction of inland water consumption in all its operations, reaching a reduction of 40% by 2030 and 65% by 2040. Meanwhile, at the Salar de Atacama mine, we reduced water consumption by 20% compared to 2019, and by 50% by 2030. To this end, we will develop initiatives that improve production processes to make more efficient use of inland water and we will make investments that will allow us to use seawater in nitrate and iodine production processes.

Another focus is the reduction of emissions. Although SQM is currently one of the lithium producers with the lowest carbon footprint, we are committed to being carbon neutral in all products by 2040, and in the case of lithium, potassium chloride and iodine by 2030. To this end, we will invest approximately US$100 million.

In addition, we will reduce brine extraction in the Salar de Atacama. This will be possible thanks to the strong investments made in recent years in technology and research that allowed us to improve processes, yields and productivity in such a way that we will not only continue to expand the production capacity of lithium carbonate and hydroxide in Chile, but we will also reduce the extraction of brine from the Salar de Atacama.

Thus, by 2030 we aim to have a brand that is publicly associated with the world's green industries, and to this end we have made progress towards this transformation in sustainability through the publication of a human rights policy; the annual Sustainability Report, which follows the highest ESG publication standards and is audited by independent experts; a demanding compliance programme; the online monitoring plan for operations in the Salar Atacama salt flats; membership of the United Nations Global Compact and adherence to the Sustainable Development Goals (SDGs); a demanding compliance programme; the online monitoring plan for operations in the Salar de Atacama; membership of the United Nations Global Compact and adherence to the Sustainable Development Goals (SDGs); and participation in the Global Battery Alliance, among other measures that we intend to continue to expand.