Company: SQM
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000909037-25-000020
Chunk: 2

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-04-24
Form: 20-F
Item: Item 3
Chunk 2
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 December 31, 2024, revenues related to products originating from the Salar de Atacama represented 55% of our consolidated revenues, consisting of revenues from our potassium business line and our lithium and derivatives business line for the period. As of December 31, 2024, only six years remain on the term of the SQM-Corfo Agreements and we had extracted approximately 52% of the total permitted accumulated extraction and sales limit of lithium under the lithium extraction and sales limits.
Our ability to continue our operations in the Salar de Atacama beyond 2030 will depend on implementing the association agreement with Codelco, which holds the exploitation rights in the Salar de Atacama from 2031 to 2060 through the Tarar-Codelco Agreements. If we are unable to implement the proposed association agreement with Codelco, we would be unable to continue extraction of lithium and potassium from the Salar de Atacama, which would have a material adverse effect on our business, financial condition and results of operations. 
Volatility of world lithium, fertilizer and other chemical prices and changes in production capacities could affect our business, financial condition and results of operations.
The prices of our products are determined principally by world prices, which, in some cases, have been subject to substantial volatility in recent years. World lithium, fertilizer and other chemical prices constantly vary depending upon the relationship between supply and demand at any given time. Supply and demand dynamics for our products are tied to a certain extent to global economic cycles and have been impacted by circumstances related to such cycles. Furthermore, the supply of lithium, certain fertilizers, or other chemical products, including certain products that we provide, varies principally depending on the production of the major producers, (including us) and their respective business strategies.
We expect that prices for the products we manufacture will continue to be influenced, among other things, by worldwide supply and demand and the business strategies of major producers. Some of the major producers (including us) have increased or decreased production and have the ability to increase or decrease production.
As a result of the above, the prices of our products may be subject to substantial volatility. For example, during 2024, average lithium prices decreased from US$30,467 per metric ton in 2023 to US$10,936 per metric ton during the year ended December 31, 2024. High volatility or a substantial decline in the prices or sales volumes of one or more of our products could have a material