Company: SQM
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000909037-25-000020
Chunk: 143

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-04-24
Form: 20-F
Item: Item 5
Chunk 143
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 December 31, 2024, a decrease of 27.1% compared to US$4,392.4 million for the same period in 2023, mainly due to lower payments to Corfo related to lower lithium prices under the formula for lease payment rate tight to lithium sales prices.
Lithium and Derivatives
Lithium and derivatives cost of sales decreased 43.6% to US$1,666.3 million in 2024 from US$2,955.7 million in 2023, primarily as a result of decreased average prices which impact cost of sales as described below.
Our costs of sales related to our lithium and derivatives business line fluctuate with our price of lithium under the SQM-Corfo Agreements. For technical and battery grade lithium carbonate, the following structure of progressive lease payment rates based on the final sale price applies:

Price US$/MT Li2CO3                          Lease payment rate
$0 - $4,000                                        6.8        %
Over $4,000 - $5,000                               8.0        %
Over $5,000 - $6,000                              10.0        %
Over $6,000 - $7,000                              17.0        %
Over $7,000 - $10,000                             25.0        %
Over $10,000                                      40.0        %
Similarly for technical grade and battery grade lithium hydroxide, the following structure of progressive lease payment rates based on the final sale price applies:

Price US$/MT LiOH                            Lease payment rate
$0 - $5,000                                        6.8        %
Over $5,000 - $6,000                               8.0        %
Over $6,000 - $7,000                              10.0        %
Over $7,000 - $10,000                             17.0        %
Over $10,000 - $12,000                            25.0        %
Over $12,000                                      40.0        %
See Note 18.2 to our consolidated financial statements for the disclosure of lease payments made to Corfo for all periods presented.
Specialty Plant Nutrition
Specialty plant nutrition cost of sales increased 12.1% to US$775.2 million in 2024 from US$691.5 million in 2023, as a result of higher sales volumes in 2024 when compared to 2023. The average cost of sales in the