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Joint Ventures

12 Months Ended

Dec. 31, 2022

Joint Ventures

Note 8Joint Ventures

8.1Investment in joint ventures accounted for under the equity method of accounting.


								Share in profit (loss) of joint ventures
		Equity-accounted investees						accounted for using the equity method
		As of		As of		As of		For the year ended		For the year ended		For the year ended
		December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
Joint Venture		2022		2021		2020		2022		2021		2020
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Vitas Fzco.		20,793		8,682		9,720		8,208		6,304		2,010
SQM Qingdao Star Corp Nutrition Co. Ltd.		—		—		—		—		—		83
Pavoni & C. Spa		7,315		7,030		7,222		470		174		9
Covalent Lithium Pty Ltd.		—		—		—		—		—		—
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		—		—		9,028		—		—		(280)
Total		28,108		15,712		25,970		8,678		6,478		1,822


		Share on other comprehensive income joint ventures						Share on total comprehensive income of joint ventures
		accounted for using the equity method						accounted for using the equity method
		As of		As of		As of		For the year ended		For the year ended		For the year ended
		December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
Joint Venture		2022		2021		2020		2022		2021		2020
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Coromandel SQM India (*)		—		—		—		—		—		—
SQM Vitas Fzco.		674		429		(1,469)		8,882		6,733		541
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)		—		—		—		—		—		83
SQM Vitas B.V.		—		—		—		—		—		—
Pavoni & C. Spa		(210)		(317)		349		260		(143)		358
Covalent Lithium Pty Ltd.		90		37		16		90		37		16
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		—		—		—		—		—		(280)
Total		554		149		(1,104)		9,232		6,627		718

(*)	These investments were disposed of in 2021

(*)	See more details in Note 8.4 (a).

The amounts described in the following box represent numbers used in the consolidation of the company:

Equity-accounted investees

Share in profit (loss) of joint ventures

accounted for using the equity method

As of

As of

As of

For the year ended

For the year ended

For the year ended

December 31,

December 31,

December 31,

December 31,

December 31,

December 31,

Joint Venture

2022

2021

2020

2022

2021

2020

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

SQM Vitas Brasil Agroindustria (1)

14,667

—

3,511

5,834

4,582

1,018

SQM Vitas Perú S.A.C. (1)

1,340

4,681

1,659

2,293

1,645

660

Total

16,007

4,681

5,170

8,127

6,227

1,678

Share on other comprehensive income of

Share on total comprehensive income of

joint ventures accounted for using

joint ventures accounted for using

the equity method, for the period ended

the equity method, for the period ended

As of

As of

As of

For the year ended

For the year ended

For the year ended

December 31,

December 31,

December 31,

December 31,

December 31,

December 31,

Joint Venture

2022

2021

2020

2022

2021

2020

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

SQM Vitas Brasil Agroindustria (1)

551

(429)

(1,469)

6,385

4,153

(451)

SQM Vitas Perú S.A.C. (1)

—

—

—

2,293

1,645

660

Total

551

(429)

(1,469)

8,678

5,798

209

(1)

The companies are subsidiaries of:

SQM Vitas Fzco.


										Dividends received for the year ending
								Share of		As of		As of		As of
		Description of the nature				Country of		interest in		December 31,		December 31,		December 31,
Joint venture		of the relationship		Domicile		incorporation		ownership		2022		2021		2020
										ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		Production and distribution of soluble fertilizers.		Huangjing Road, Dawan Town, Qingbaijiang Dristrict, Chengdu Municipality, Sichuan Province		China		50	%	—		—		—
SQM Vitas Fzco.		Production and commercialization of specialty plant, animal nutrition and industrial hygiene.		Jebel ALI Free Zone P.O. Box 18222, Dubai		United Arab Emirates		50	%	—		—		—
SQM Qingdao Star Corp Nutrition Co. Ltd.		Production and distribution of nutrient plant solutions with specialties NPK soluble.		Longquan Town, Jimo City, Qingdao Municipality, Shangdong Province		China		50	%	—		—		2,223
Pavoni & C. Spa		Production of specialty fertilizers and others for distribution in Italy and other countries.		Corso Italia 172, 95129 Catania -CT, Sicilia		Italy		50	%	—		—		—
SQM Vitas Brasil Agroindustria (1)		Production and trading of specialty vegetable and animal nutrition and industrial hygiene.		Via Cndeias, Km. 01 Sem Numero, Lote 4, Bairro Cia Norte, Candeias, Bahia.		Brazil		49.99	%	—		—		—
SQM Vitas Perú S.A.C. (1)		Production and trading of specialty vegetable and animal nutrition and industrial hygiene		Av. Juan de Arona 187, Torre B, Oficina 301-II, San Isidro, Lima		Peru		50	%	—		—		—
Covalent Lithium Pty Ltd.		Development and operation of the Mt. Holland Lithium project, which will include the construction of a lithium extraction and refining mine.		L18, 109 St Georges Tce Perth WA 6000 \|PO Box Z5200 St Georges Tce Perth WA 6831		Australia		50	%	—		—		—
Total										—		—		2,223

(*)	The percentages presented correspond to the ownership used in the consolidation of the company.

8.2Assets, liabilities, revenue and expenses from joint ventures

The information disclosed reflects the amounts presented in the financial statements of the relevant joint ventures and not the Company's share of those amounts.


		As of December 31, 2022								For the year ended December 31, 2022
		Assets				Liabilities								Other
														comprehensive		Comprehensive
Joint Venture		Current		Non-current		Current		Non-current		Revenue		Net income (loss)		income		income
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Vitas Fzco. (*)		9,618		—		49		—		—		165		—		165
SQM Vitas Brasil Agroindustria (*)		73,045		6,111		45,894		—		162,026		11,670		602		12,272
SQM Vitas Perú S.A.C. (*)		59,196		7,285		49,596		117		61,387		4,586		—		4,586
Pavoni & C. Spa (*)		11,516		6,358		8,853		802		18,066		939		(344)		595
Covalent Lithium Pty Ltd.		2,077		3,088		7,062		3,017		—		(2,648)		—		(2,648)
Total		155,452		22,842		111,454		3,936		241,479		14,712		258		14,970


		As of December 31, 2021								For the year ended December 31, 2021
		Assets				Liabilities								Other
														comprehensive		Comprehensive
Joint Venture		Current		Non-current		Current		Non-current		Revenue		Net income (loss)		income		income
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Vitas Fzco.		9,606		—		215		—		—		159		—		159
SQM Vitas Brasil Agroindustria		73,500		4,846		68,794		—		103,335		9,165		(858)		8,307
SQM Vitas Perú S.A.C.		28,610		7,347		24,473		828		48,128		3,289		—		3,289
Pavoni & C. Spa		12,885		6,714		11,226		725		19,599		347		(634)		(287)
Covalent Lithium Pty Ltd.		3,904		2,636		7,498		1,489		—		(864)		74		(790)
Total		128,505		21,543		112,206		3,042		171,062		12,096		(1,418)		10,678


		As of December 31, 2020								For the year ended December 31, 2020
		Assets				Liabilities								Other
														comprehensive		Comprehensive
Joint Venture		Current		Non-current		Current		Non-current		Revenue		Net income (loss)		income		income
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		29,507		4,412		14,156		—		9		(562)		—		(562)
SQM Vitas Fzco.		(496)		20,431		496		—		—		4,019		—		4,019
SQM Vitas Brasil Agroindustria		40,064		5,527		33,410		—		78,960		2,036		(2,938)		(902)
SQM Vitas Perú S.A.C.		34,548		7,928		33,145		1,080		37,591		1,319		—		1,319
Pavoni & C. Spa		10,645		7,493		9,270		836		15,958		16		698		714
Covalent Lithium Pty Ltd.		1,418		2,131		2,823		910		—		(232)		33		(199)
Total		115,686		47,922		93,300		2,826		132,518		6,596		(2,207)		4,389

8.3Other joint venture disclosures


		Cash and cash equivalents				Other current financial liabilities				Other non-current financial liabilities
		As of		As of		As of		As of		As of		As of
		December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
Joint Venture		2022		2021		2022		2021		2022		2021
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Vitas Fzco.		3,866		4,115		9,753		—		—		—
SQM Vitas Brasil Agroindustria		3,820		4,132		82		10,416		—		—
SQM Vitas Perú S.A.C.		2,208		380		4,951		238		117		289
Pavoni & C. Spa		1,088		787		494		7,561		—		—
Covalent Lithium Pty Ltd.		1,931		3,858		—		980		—		—
Total		12,913		13,272		15,280		19,195		117		289


		Depreciation and amortization expense				Interest expense				Income tax benefit (expense)
		for the year ending				for the year ending				for the year ending
		As of		As of		As of		As of		As of		As of
		December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
Joint Venture		2022		2021		2022		2021		2022		2021
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Vitas Fzco.		—		—		(1)		(1)		—		—
SQM Vitas Brasil Agroindustria		(331)		(278)		(333)		(367)		(3,164)		(1,985)
SQM Vitas Perú S.A.C.		(360)		(354)		(298)		(311)		(2,370)		(1,692)
Pavoni & C. Spa		(183)		(245)		(347)		(459)		(459)		(173)
Covalent Lithium Pty Ltd.		(176)		(167)		(40)		(55)		1,094		343
Total		(1,050)		(1,044)		(1,019)		(1,193)		(4,899)		(3,507)

8.4Disclosure of interests in joint ventures

a)	Transactions in the year 2022

●

As of December 31, 2022, there are no transactions to disclose.

b)	Transactions in the year 2021

●

On February 9, 2021, two of the Company’s subsidiaries signed an agreement to terminate a dispute related to sales contracts and interest in the joint venture of Sichuan SQM Migao Chemical Fertilizers Co Ltd. Consequently, the Company received a US$ 11.5 million compensation.

c)	Transactions in the year 2020

●

SQM Vitas BV became a wholly owned subsidiary of the Company during the second quarter of 2020, through its subsidiary Soquimich European Holdings, at a cost of ThUS$ 1,276 and its name has been changed to SQM Holland. See Note 7.1.

●

In the second quarter of 2020, shares held in Arpa Speciali S.R.L. were sold through SQM Pavoni & C., SpA. At a value of ThUS$ 56, which brought about a loss of ThUS$ 125. An initial installment of ThUS$ 17 was charged, leaving two pending installments of ThUS$ 20 maturing June 30, 2021 and June 30, 2022. The pending installments are classified as other accounts receivable.

●

In the third quarter of 2020, shares held in Coromandel SQM India were sold through Soquimich European Holdings B.V. at a value of ThUS$ 1,604, which brought about a loss of ThUS$ 643.

●

During fourth quarter of 2020, the shares in SQM Qingdao-Star Co, Ltd. were sold through SQM Industrial S.A. for ThUS$ 1,303, which brought about a gain of ThUS$ 62. As of December 31, 2020, the sale proceeds were recorded in other receivables.

●

A gain amounting ThUS$ 7,036 relating to the reversal of the impairment associated with the investment in Sichuan SQM Migao Chemical Fertilizers Co Ltd. was recognized in Other gains (losses) as a result of the agreement made to end a dispute, described above.

8.5Joint Operations

In 2017, together with our subsidiary SQM Australia Pty, we entered into an agreement to acquire 50% of the assets of the Mt Holland lithium project in Western Australia. The Mt Holland lithium project is to design, construct and operate a mine, concentrator and refinery to produce lithium hydroxide.

On February 17, 2021, the Board of Directors approved the investment in the Mount Holland lithium project in Western Australia. SQM's share of the project investment is expected to be approximately US$700 million, between 2021 and

2025. The feasibility study confirms an expected initial production capacity of 50,000 metric tons of lithium hydroxide during the second half of 2024.

As of December 31, 2022, a total of US$475 million has been contributed to Mt. Holland. Lithium project The revised investment budget for this project considers a pending investment balance of US$450 million.