SQM - SQM sees talks coming soon with Chile government on lithium plans

2023-04-26 12:59:03 ET

SQM ( NYSE: SQM ) expects to start talks soon with Chilean authorities about the government's lithium plans, Chairman Gonzalo Guerrero said in a letter to shareholders Wednesday.

"SQM's experience has allowed Chile to be a world leader in lithium," Guerrero said in the letter, adding the company "hopes to soon start conversation with authorities, with the goal of creating value for all involved groups."

Guerrero also said SQM's ( SQM ) 2023-25 investment plan totals $3.4B including maintenance, with $1.4B aimed at increasing lithium production in Chile.

The company said it seeks to raise lithium carbonate capacity to 210K metric tons from 180K tons by the end of 2024 and lithium hydroxide capacity to 100K tons from 30K tons by 2025.

CEO Ricardo Ramos said SQM ( SQM ) expects to reach an agreement to produce lithium after meeting this week with Chile's Corfo state development office to discuss the government's new public-private model for the industry.

More SA analysis on SQM:

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• My Best Lithium Pick as Chile's President 'Plans' to Nationalize Lithium
• SQM: Brace for Impact

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