SQM
T2Sociedad QuÃmica y Minera de Chile S.A.
OverviewSociedad Química y Minera de Chile S.A. (SQM) produces critical materials like lithium for EV batteries and energy storage, iodine for medical and industrial us
Sociedad Química y Minera de Chile S.A. (SQM) produces critical materials like lithium for EV batteries and energy storage, iodine for medical and industrial uses, and specialty plant nutrients for agriculture. In 2025, lithium and iodine were primary gross profit drivers, at 45% and 42% respectively. SQM serves global customers in the EV, energy storage, agriculture, pharmaceutical, and high-tech sectors.
- What They Do (Plain English & Analogies)
- SQM is a specialized mining and chemical company that extracts and processes unique natural resources, primarily from the Atacama Desert in Chile, but also from international operations. Think of them as a highly focused farm that 'grows' very specific, valuable 'crops' for different high-tech, medical, and agricultural industries. Their main 'crops' are lithium, which is essential for electric vehicle batteries and large-scale energy storage systems; iodine, used in everything from medical X-rays and pharmaceutical applications to LCD screens; and specialty fertilizers that help farmers grow healthier, more productive crops. They essentially provide critical ingredients for modern technology, healthcare, and global food production.
- Very Brief History
- Sociedad Química y Minera de Chile S.A. (SQM) was established in 1968 through a merger of Chilean state-owned entities to reorganize the nitrate industry. It was nationalized in 1971 before undergoing privatization from 1983-1988. Key milestones include starting potassium nitrate production in 1986, entering lithium and iodine production in 1997 from the Salar de Atacama, and listing on the NYSE in 1995. More recently, SQM expanded its lithium business to Argentina in 2016 and Australia in 2017, and in 2018, China's Tianqi Lithium acquired a significant stake. In 2025, SQM finalized an association agreement with Codelco, creating Nova Andino Litio for long-term lithium production from the Salar de Atacama.
- "Street Stereotype"
- SQM is generally perceived by investors and analysts as a critical materials powerhouse, particularly known for its dominant position in lithium production. It's seen as a key player benefiting from the bullish 'Critical Materials' and 'Onshoring' investment themes, driven by the surging demand for electric vehicles (EVs) and energy storage systems. The company is also recognized for its low-cost production capabilities, especially from its Chilean brine operations, and its diversified portfolio including strong iodine and specialty plant nutrition businesses.
- Subsidiaries On Linked In*
- None explicitly listed as separate brands on LinkedIn, though Nova Andino Litio is a key joint venture with Codelco, and the company operates an International Lithium division.
- Customer Sectors & Example Clients
- SQM's customers are primarily in the electric vehicle (EV) and energy storage systems (ESS) manufacturing, global agricultural, and industrial/high-tech sectors. For lithium, example clients include major automakers like Tesla, BMW, Hyundai Motors, and Kia Corporation, as well as battery makers like CATL and LG Energy Solution. For specialty plant nutrition, clients include agricultural giants like Nutrien. For iodine, customers are in the medical, pharmaceutical, and electronics industries, such as those producing x-ray contrast media and polarizing films for LCD/LED.
- New Customers / Segments They'Re Targeting
- SQM is actively targeting the rapidly growing energy storage systems (ESS) market as a significant driver for lithium demand, alongside electric vehicles. In specialty plant nutrition, they are focusing on specialty blends and value-added products. For iodine, the x-ray contrast media market continues to be a strong focus. Geographically, there is a strong appetite for lithium units in Asia Pacific, including China.
- How Key Themes May Help/Hurt
- SQM is directly impacted by the 'Critical Materials' and 'Onshoring' themes. As a producer of critical materials like lithium and iodine, increased government infrastructure spending and strategic initiatives to secure these materials globally are expected to drive demand and potentially higher prices, directly benefiting SQM. The company's ongoing capacity expansions in Chile and Australia are aimed at meeting this growing demand. The 'Onshoring' theme, with its focus on domestic production and resilient supply chains, favors SQM's Chilean operations for lithium and iodine, as Chile is a stable source. The Codelco joint venture further solidifies long-term access to Chilean lithium. SQM's Australian operations also contribute to diversified critical material supply chains for Western markets. The strong demand for electric vehicles (EVs) and energy storage systems (ESS) is a primary driver for lithium, directly translating to higher sales volumes and potentially higher prices for SQM's lithium products.
3 Main Long-Term Bull Details
- Secured Long-Term Lithium Production and Capacity Expansion: The finalization of the association agreement with Codelco, creating Nova Andino Litio, secures SQM's long-term lithium operations in the Salar de Atacama until 2060, removing significant regulatory uncertainty. Combined with aggressive capacity expansions in Chile (targeting 260,000 tons LCE production in 2026) and the ramp-up of Australian operations (Mount Holland producing at capacity, Kwinana refinery progressing), SQM is positioned for substantial and sustained volume growth.
- Robust Demand from EVs and Energy Storage Systems: The long-term fundamentals for lithium remain strong, driven primarily by the continued growth of electric vehicles and a significant increase in demand from energy storage systems. SQM expects the pricing environment for lithium to be significantly stronger in Q1 2026, with strong appetite for lithium units, especially in Asia Pacific.
- Diversified Portfolio with Strong Iodine and Specialty Plant Nutrition: SQM's diversified portfolio, including strong performance in iodine and specialty plant nutrition, provides revenue stability and growth independent of lithium cycles. Iodine delivered a strong contribution, representing approximately 42% of SQM's total gross margin in 2025, with record prices. The company is expanding iodine capacity and expects moderate volume growth in specialty plant nutrition for 2026.
3 Main Long-Term Bear Details
- Lithium Price Volatility and Kwinana Ramp-up Delays: Despite the recent rebound, the lithium market remains susceptible to significant price volatility. While current prices are strong, a sustained downturn due to oversupply or slower-than-expected demand growth could materially impact profitability. Additionally, the ramp-up of the Kwinana lithium hydroxide refinery has been affected by intermittent issues, with full ramp-up now expected to move into 2027, potentially delaying expected hydroxide volumes and impacting profitability.
- Increased Governmental Influence and Profit Sharing: The Codelco joint venture, while securing long-term access, introduces a new dynamic with increased governmental influence. The Chilean state will receive a significant portion of the operating margin, potentially limiting SQM's ultimate profitability from its core Chilean lithium assets. Future regulatory changes or political shifts could also impact operations.
- Execution Risks in Capacity Expansion and Exploration: SQM's ambitious growth plans, including the expansion of its Chilean lithium operations, the ramp-up of Kwinana, and significant exploration activities in Australia, Namibia, and Canada, involve substantial execution risks. Delays, cost overruns, or technical challenges in bringing new facilities online or developing new mining projects could hinder the achievement of production targets and impact projected financial returns.
- Competitors And Differentiation
- SQM faces competition across its segments from global players like Albemarle and Ganfeng Lithium in the lithium market, and Ise Chemicals in iodine, and Nutrien in specialty plant nutrition. SQM differentiates itself through its low-cost production from the Salar de Atacama, a diversified product portfolio that provides revenue stability, and aggressive capacity expansions. The recently finalized association agreement with Codelco, forming Nova Andino Litio, secures long-term access to the Salar de Atacama's lithium resources until 2060, providing a significant competitive advantage. They also focus on efficiency improvements and new technology to reduce their environmental footprint.
- Recent Performance & What The Market'S Focused On
- SQM finished 2025 with solid financial results, reporting full-year revenues of $44.6 billion and net income of $588 million. The fourth quarter of 2025 saw particularly strong performance in lithium and iodine, with record quarterly lithium sales volumes and a nearly 14% quarter-over-quarter increase in average realized lithium prices, reaching close to $10 per kilogram. Iodine contributed approximately 42% of SQM's total gross margin in 2025, with record prices. The market is currently focused on several key areas: the sustained recovery and volatility of lithium prices (with Q1 2026 prices expected to be substantially higher than Q4 2025), the successful ramp-up of the Kwinana lithium hydroxide refinery (now expected to move into 2027), the operational and financial implications of the Codelco joint venture (Nova Andino Litio), and the progress of SQM's capacity expansions across all its divisions, including the seawater pipeline project for iodine. Investors are also closely watching the demand momentum from electric vehicles and energy storage systems, and the company's ability to meet its increased production targets for 2026 (e.g., 260,000 LCE for Chilean operations).
- Brands And Revenue Segments
- SQM operates under its corporate brand, Sociedad Química y Minera de Chile S.A. Key operational divisions and joint ventures include: * **Nova Andino Litio:** The joint venture with Codelco for lithium production from the Salar de Atacama. * **International Lithium Division:** Responsible for operations like the Mount Holland mine and concentrator and the Kwinana refinery in Australia. * **Iodine and Plant Nutrition Division:** Oversees iodine and specialty plant nutrition businesses. SQM's primary revenue segments are: * **Lithium and Derivatives:** Includes lithium carbonates and hydroxides for batteries, ceramics, and other industrial applications. * **Iodine and Derivatives:** Used in medical, pharmaceutical, agricultural, and industrial applications. * **Specialty Plant Nutrition:** Includes potassium nitrate, sodium nitrate, specialty blends, and other specialty fertilizers. * **Potassium Chloride and Sulfate:** Fertilizers for various crops. * **Industrial Chemicals:** Including sodium nitrate, potassium nitrate, and solar salts.
Bull / Bear DetailsSQM is a compelling investment as a leading producer of critical materials, primarily lithium, benefiting from a strong market rebound driven by EVs and energy
Thesis
SQM is a compelling investment as a leading producer of critical materials, primarily lithium, benefiting from a strong market rebound driven by EVs and energy storage systems. The Codelco joint venture secures long-term Chilean operations, while increased 2026 production targets and diversified revenue from robust iodine and specialty plant nutrition markets provide stability, despite some project ramp-up delays. (Updated: 2026-03-05)
Bull case
The lithium market is experiencing a significant rebound, with SQM reporting an inflection point in Q4 2025 and expecting substantially stronger pricing in Q1 2026. Record quarterly sales volumes in Q4 2025 (over 66,000 metric tons from Nova Andino Litio) and a projected 25% global lithium demand growth in 2026, driven by EVs and energy storage, create a favorable environment for SQM's expanding production.
The formalization of the Codelco joint venture (Nova Andino Litio) secures SQM's long-term lithium operations in the Atacama salt flats until 2060, removing significant regulatory uncertainty. SQM is targeting an increased total lithium production of approximately 260,000 LCE tons for 2026, leveraging full capacity at Nova Andino Litio and ongoing expansion plans, positioning the company for sustained volume growth.
SQM's diversified portfolio provides revenue stability and growth independent of lithium cycles. Iodine delivered a strong contribution (approximately 42% of total gross margin in 2025) with record prices, supported by tight supply and strong demand, particularly in x-ray contrast media. The seawater pipeline project will further enhance iodine production capacity, aiming to surpass 17,000 metric tons per year.
Bear case
Despite the recent rebound, the lithium market remains susceptible to significant price volatility, as evidenced by past fluctuations and recent dips in Chinese lithium futures due to EV sales and geopolitical tensions. While SQM expects Q1 2026 prices to be substantially higher, management also anticipates continued volatility throughout 2026, which could impact profitability.
SQM faces execution risks and delays in its ambitious capacity expansion projects. The ramp-up of the Kwinana lithium hydroxide refinery has been affected by intermittent issues, pushing the full ramp-up to 2027, and 2026 sales will be heavily skewed towards spodumene concentrate. Additionally, the 240,000-ton expansion of the Antofagasta chemical plant has been delayed to 2028.
The Codelco joint venture, while securing long-term access, introduces a new dynamic with increased governmental influence and profit sharing. The Chilean state will receive a significant portion of the operating margin, potentially limiting SQM's ultimate profitability from its core Chilean lithium assets. Dividend payments to Codelco are expected in April 2026, adding a new financial obligation.
Bull / Bear Case
- Bear Case
- Despite the recent lithium price rebound, the market remains highly susceptible to significant volatility, with management anticipating continued fluctuations throughout 2026, potentially impacting profitability. SQM faces considerable execution risks and delays in its ambitious capacity expansion projects. The full ramp-up of the Kwinana lithium hydroxide refinery has been pushed to 2027 due to intermittent issues, meaning 2026 sales will be heavily skewed towards lower-value spodumene concentrate. Additionally, the 240,000-ton expansion of the Antofagasta chemical plant is delayed to 2028. The Codelco joint venture, while securing long-term access, introduces increased governmental influence and a substantial profit-sharing mechanism (70-85% to the Chilean state), potentially limiting SQM's ultimate profitability from its core Chilean lithium assets. The stock's recent underperformance post-earnings suggests investor skepticism regarding these challenges.
- Bull Case
- SQM is poised for significant growth driven by a robust lithium market rebound, with an inflection point observed in Q4 2025 and substantially stronger pricing expected in Q1 2026. Record quarterly sales volumes in Q4 2025, exceeding 66,000 metric tons from Nova Andino Litio, underscore strong operational performance. Global lithium demand is projected to grow by 25% in 2026, primarily fueled by electric vehicles and energy storage systems, creating a favorable pricing environment. The Codelco joint venture, Nova Andino Litio, secures long-term lithium operations in the Atacama salt flats until 2060, removing regulatory uncertainty. SQM is targeting an increased total lithium production of approximately 260,000 LCE tons for 2026. Furthermore, SQM's diversified portfolio, particularly iodine, provided a strong contribution to gross margin in 2025, with record prices and planned capacity expansions enhancing revenue stability.
- More Compelling & Why
- Bear. SQM's trailing P/E ratio, ranging from 33-41x, is significantly higher than the industry average, indicating an expensive valuation. The strongest bear argument is the substantial execution risk and delays in critical expansion projects, particularly the Kwinana refinery ramp-up to 2027, which will skew 2026 sales to lower-margin spodumene. This, combined with the Codelco JV's profit-sharing, creates uncertainty not reflected in the current price. My view would flip with consistent, on-schedule project execution and sustained, strong free cash flow generation.
Key Factors
| Key Factor | Why It Matters | What To Watch | What It Signals | Where/How To Track | Free Alt Data | Paid Alt Data |
|---|---|---|---|---|---|---|
| Iodine Seawater Pipeline Project Completion and Production Capacity | Completion of the seawater pipeline allows SQM to meet growing demand in a tight iodine market, sustaining high prices and contributing significantly to gross margin through increased capacity. | Announcement of the seawater pipeline project completion (expected to finish). Progress towards reaching over 15,000 metric tons of iodine production in 2026, and eventually surpassing 17,000 metric tons per year. | Bullish if the seawater pipeline is completed on schedule and contributes to increased production, leading to stable or increasing sales volumes. Bearish if delays occur, limiting SQM's ability to capitalize on strong iodine demand. | Company press releases, Q1 2026 and subsequent earnings calls. | Industry reports on iodine market supply/demand, Chilean mining news. | IHS Markit: Chemical market reports; Argus Media: Iodine market analysis. |
| Codelco JV (Nova Andino Litio) Dividend Payments | The Codelco JV secures long-term lithium production but introduces new financial dynamics, including dividend payments, which directly impact SQM's net income and cash flow. | Announcement of dividend payments to Codelco, expected in April 2026. Details on how the 33,500 metric tons of lithium allocated to Codelco impact net income calculations. | Bullish if dividend payments are in line with expectations and the operational transition ensures stable or increased production from Nova Andino Litio. Bearish if dividend payments are higher than anticipated or if operational disruptions are reported. | Company press releases, Q1 2026 earnings report (expected May 2026), SEC filings (Form 20-F for annual reports). | Chilean government mining ministry announcements, Codelco press releases. | S&P Global Market Intelligence: Financial models and analyst reports. |
| Full-Year 2026 Lithium Production Target Achievement | Meeting the increased 2026 lithium production target is crucial for SQM to capitalize on strong long-term demand fundamentals and solidify its market leadership, driving revenue growth. | Updates on total lithium production for 2026, targeting close to 260,000 tons of LCE. Any commentary on the impact of optimization and efficiency projects on production. | Bullish if SQM confirms it is on track to meet or exceed the 260,000 tons LCE production target. Bearish if there are indications of production shortfalls or further delays in expansion projects. | Q1 2026 and subsequent earnings reports and conference calls. | Industry news on global lithium supply, reports from mining associations. | Wood Mackenzie: Lithium supply forecasts; CRU Group: Lithium production analysis. |
| Q1 2026 Lithium Sales Volumes and Realized Pricing | Lithium sales volumes and realized prices are primary drivers of SQM's revenue and profitability, directly reflecting market demand and supply dynamics. Strong performance indicates a sustained market recovery. | Q1 2026 average realized lithium price (expected to be substantially higher than Q4 2025's $10/kg). Q1 2026 sales volume (expected to surpass Q1 2025 by >15%). | Bullish if Q1 2026 realized prices and sales volumes exceed guidance. Bearish if prices or volumes fall short of expectations, indicating market weakness. | Q1 2026 earnings report and conference call (expected May 2026). | Fastmarkets, Benchmark Mineral Intelligence (free summaries): Lithium spot prices (carbonate, hydroxide); Industry news on EV sales and energy storage deployments. | Fastmarkets: Detailed lithium price assessments; Benchmark Mineral Intelligence: Lithium market intelligence reports. |
| Kwinana Lithium Hydroxide Production Ramp-up Progress and 2027 Target | Delays in the Kwinana refinery ramp-up impact SQM's ability to capitalize on high-value lithium hydroxide demand and shift its product mix, affecting profitability and market positioning. | Updates on the resolution of intermittent issues by mid-2026 and progress towards full ramp-up, now expected in 2027. Also, the proportion of international sales skewed towards spodumene concentrate in 2026. | Bullish if intermittent issues are resolved by mid-2026 and ramp-up accelerates towards 2027 targets. Bearish if further delays occur or if the shift to spodumene concentrate sales is more pronounced than expected, indicating continued challenges. | Company press releases, Q1 2026 and subsequent earnings calls (next earnings call for Q1 2026 will likely be in May 2026). | Industry news on lithium hydroxide production, trade publications for Australian mining. | Wood Mackenzie: Lithium hydroxide production forecasts; CRU Group: Lithium market analysis. |
Key Reported Metrics
| Metric | Why It Matters | Last Period |
|---|---|---|
| Total Revenue | Total Revenue indicates the overall financial health and market demand for SQM's diverse product portfolio, including lithium, specialty plant nutrients, and iodine. Investors will watch this for top-line growth and market positioning. | 8.9% |
| Net Income | Net Income reflects SQM's overall profitability and operational efficiency. It is significantly impacted by fluctuating commodity prices, especially lithium, and the company's ability to manage costs amidst market volatility. | 35.8% |
| Lithium and Derivatives Revenues | Lithium is a core growth driver for SQM, directly tied to the bullish 'Critical Materials' and 'Onshoring' themes. Its performance reflects demand from EV and energy storage sectors, crucial for future profitability. | 21.4% |
Key QuestionsWill SQM's Q1 2026 realized lithium prices and sales volumes meet or exceed the strong guidance provided, and can the company effectively navigate continued mar
Will SQM's Q1 2026 realized lithium prices and sales volumes meet or exceed the strong guidance provided, and can the company effectively navigate continued market volatility to sustain positive pricing trends throughout the year?
- Question 2
Given the delayed full ramp-up of the Kwinana lithium hydroxide refinery to 2027 and the resulting heavy skew towards spodumene concentrate sales in 2026, what will be the impact on SQM's international lithium division's profitability and overall product mix?
- Question 3
What will be the specific financial impact of the first dividend payment to Codelco in April 2026 on SQM's Q1/Q2 2026 financial results, and will the completion of the iodine seawater pipeline project successfully unlock incremental production capacity to meet growing demand amidst anticipated new third-party supply?
Rerating Thresholds
| Metric | What'S Needed For Rerating | Why It Matters | Earnings Date |
|---|---|---|---|
| Net Income | For Sociedad Química y Minera de Chile S.A. (SQM) to rerate higher, the Net Income Margin for Q4 2025 needs to hit 25% or higher. This would significantly surpass the implied analyst consensus Net Income Margin of approximately 17-18% (based on an average EPS estimate of $0.75-$0.80 and revenue of $1.235-$1.25 billion). A Net Income Margin of 25% or more would demonstrate a robust recovery from recent quarters, such as Q3 2025's 15.25% and Q2 2025's 8.48%. Additionally, strong and optimistic guidance for 2026, reinforcing the positive outlook for lithium demand and prices, would be crucial for a sustained rerating. | Hitting a Net Income Margin of 25% or higher would signal a robust and sustained recovery in lithium prices and demand, validating the bullish investment theses around critical materials and onshoring. It would demonstrate SQM's ability to translate favorable market conditions into strong profitability, improving its valuation and competitive positioning. Investors are watching for a clear and significant rebound in net income to confirm the positive outlook for the lithium sector and drive a positive rerating. | 2026-03-03 |
| Lithium and Derivatives Revenues | For SQM's stock to rerate higher, Lithium and Derivatives Revenues (year-over-year growth) would need to significantly exceed the 21.4% reported in Q3 2025, ideally hitting at least 40-50% year-over-year. This would align with bullish lithium demand forecasts from peers like Ganfeng Lithium (projecting 30-40% global lithium demand growth for 2026) and Albemarle (expecting 15-40% global lithium demand growth for 2026), and reflect the overall company sales growth estimates of 53.1% for 2026. Additionally, strong guidance for increased lithium sales volumes and favorable lithium pricing trends would be crucial. | Hitting this threshold matters because it validates the bullish investment thesis around critical materials and onshoring. Strong lithium revenue growth would confirm market rebalancing, justify higher valuations, and reinforce SQM's competitive position as a low-cost producer expanding capacity, driving positive investor sentiment. | 2026-03-03 |
| Total Revenue | For SQM's stock to rerate higher, Total Revenue for Q4 2025 needs to significantly exceed the current analyst consensus of approximately $1.24-$1.25 billion, ideally hitting at least $1.31 billion (a 5% beat on the high end of consensus). This must be accompanied by strong, upwardly revised revenue guidance for 2026, potentially aligning with or surpassing bullish analyst EBITDA estimates for 2026, and positive commentary on sustained lithium price strength and demand growth, particularly from the EV and energy storage sectors. The successful finalization of the Codelco joint venture and progress on capacity expansions will also be key supporting factors. | Hitting this threshold validates SQM's ability to capitalize on the bullish lithium market and the 'Critical Materials' and 'Onshoring' investment theses. It demonstrates strong operational leverage and competitive positioning, boosting investor confidence and driving higher valuation multiples by confirming a robust top-line recovery and favorable future outlook. | 2026-03-03 |
Earnings Transcript Summary
· 2025Q4 Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. **Securing long-term lithium production and growth through the Codelco Joint Venture (Nova Andino Litio):** Management highlighted the signing of the association agreement with Codelco, which enables long-term lithium production from the Salar de Atacama, and increased production expectations for 2026, targeting close to 260,000 LCE. 2. **Strengthening operational performance and expanding capacity across key businesses:** The company is focused on running Nova Andino Litio at full capacity, advancing expansion plans in the Salar de Atacama, progressing the Kwinana refinery ramp-up, and finishing the seawater pipeline project for iodine to unlock incremental production capacity. 3. **Advancing sustainability and ESG performance:** Management emphasized continued progress in sustainability, with SQM strengthening its ESG performance and receiving international recognition, while also focusing on reducing environmental impact in production. | The overall takeaway from the call was one of strong operational momentum, driven by an improving lithium market and sustained strength in Iodine and Specialty Plant Nutrition. Management expressed a positive and confident tone regarding their ability to execute growth projects, deliver reliable supply, and create long-term value for shareholders. While acknowledging lithium price volatility, they conveyed optimism for significantly stronger pricing in Q1 2026 and a generally improved market environment compared to the previous year. The formalization of the Codelco joint venture was highlighted as a key strategic achievement securing long-term lithium production. | In Q3 2025, Lithium and Derivatives revenues increased 21.4% year-over-year. Iodine and Derivatives revenues increased 4.7% year-over-year. Specialty Plant Nutrition revenues increased 4.3% year-over-year. | 1. **Lithium production, sales volumes, and product mix for 2026:** Analysts questioned the 2026 sales expectations, product mix, and international operations' ramp-up. Management responded that they are targeting strong sales volumes in Q1 2026 (over 15% higher than Q1 2025) and expect to produce and allocate close to 260,000 tons of LCE in 2026, with full flexibility in carbonate and hydroxide. They also detailed the ramp-up of the Kwinana refinery and Mount Holland production, expecting international sales to increase around 10% on an LCE basis, heavily skewed towards spodumene concentrate. 2. **Lithium pricing expectations and market outlook:** Analysts sought clarity on the pricing environment for the upcoming quarters. Management stated that average realized lithium prices increased nearly 14% quarter-over-quarter in Q4 2025, reaching close to $10 per kilogram, and expect Q1 2026 prices to be 'substantially higher than Q4 2025.' They anticipate prices will remain volatile but closer to current levels than the lows seen last year. 3. **Iodine market dynamics and capacity expansion:** Analysts questioned the discrepancy between strong Q4 2025 iodine sales and stable 2026 volume guidance despite new capacity. Management explained that Q4 sales benefited from unexpected lack of third-party capacity. For 2026, stable volumes are expected due to anticipated new projects from competitors, but SQM is investing in the seawater pipeline and Maria Elena project to increase capacity to over 17,000 metric tons per year to meet growing demand, which is expected to grow by 3% in 2026. | For the full year 2025, total revenues were $44.6 billion, slightly higher than the previous year. Fourth quarter 2025 total revenue grew 23.3% to US$1,323.9 million. For the full year 2025, Lithium and Derivatives revenues increased 2.1% to US$2,288.2 million, with Q4 2025 revenues increasing 38.4% to US$736.5 million. Q4 2025 Lithium sales volumes were more than 50% higher year-over-year. For the full year 2025, Iodine and Derivatives revenues were US$1,042.8 million, contributing approximately 42% of SQM's total gross margin, supported by record prices. For the full year 2025, Specialty Plant Nutrition revenues increased 4.3% to US$982.4 million, with Q4 2025 revenues increasing 11.3% to US$250.0 million. The Specialty Plant Nutrition business saw 3% volume growth during the year. |
· 2025Q3 Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. Increasing production capacity and volumes: Management highlighted achieving the highest lithium sales volumes in SQM history, progress at the Australian operation, and plans for expanding iodine production capacity through the seawater pipeline and a new operation in Maria Elena. 2. Cost reduction initiatives: The company remains focused on advancing cost reduction initiatives, particularly within the Lithium segment. 3. Advancing the Codelco joint venture: Management announced the approval from China's antitrust authority and expects to finalize the joint venture before the end of the year, pending review by Chile's Contraloria. | The overall takeaway from the call is one of cautious optimism. Management emphasized strong operational performance, particularly in the Lithium segment with record sales volumes and improving prices, alongside solid results in Iodine and Plant Nutrition. Significant progress on strategic initiatives, such as the Codelco joint venture and capacity expansions, was highlighted. The tone was positive regarding market fundamentals and operational execution, but remained 'cautiously optimistic' about lithium pricing due to ongoing market volatility. | In Q2 2025, the Lithium and Derivatives segment saw a 21.8% drop in revenues. The Iodine and Derivatives segment showed a 3.3% increase in revenues. The Specialty Plant Nutrition business remained stable with flat results in both price and sales volumes. | 1. Lithium demand outlook, particularly the perceived disconnect between Chinese and Western forecasts: Management (Pablo Hernandez) responded that 2025 demand expectations have improved, driven by stronger EV sales in Europe and a sharp increase in Battery Energy Storage Systems (BSS) shipments, projecting over 1.5 million metric tons this year (over 25% growth) and more than 1.7 million metric tons in 2026. 2. Lithium production/sales guidance for Chilean and Australian operations, and the difference in realized prices between them: Management (Carlos Diaz, Mark Fones, Andres Fontannaz, Gerardo Illanes) clarified that Chilean production is expected to be close to 230,000 tons this year, and the Mt. Holland LCE sales projection was increased to 23,000-24,000 tons. They explained that the international price difference is mainly due to spodumene sales requiring conversion and refining costs, and future reports will provide a breakdown by product. 3. The CapEx reduction and its impact on capacity or projects: Management (Gerardo Illanes) detailed the $2.7 billion CapEx program for 2025-2027, breaking it down by division (Lithium Chile, International Lithium, Iodine and Plant Nutrition) and assuring that the reduction does not affect the company's ability to meet production and sales objectives. | Iodine revenues increased 5% year-on-year. Specialty Plant Nutrition business delivered discrete but sustainable growth compared with last year, both in volumes and revenues. Lithium segment experienced a more favorable pricing environment with increased realized average prices and delivered the highest lithium sales volumes in SQM history, with spodumene sales increasing significantly. |
Transcript Tidbits
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| SQM observed an inflection point in lithium prices towards the end of 2025, driven by stronger-than-expected demand from energy storage systems, alongside some supply disruptions. The company sees strong long-term fundamentals for lithium, primarily from electric vehicles and energy storage systems. In iodine, record prices were observed by the end of 2025, supported by tight supply and strong demand, particularly in the x-ray contrast media market. The iodine market is estimated to grow by around 3% in 2026, with sales volumes expected to remain stable or increase slightly. Specialty Plant Nutrition saw 3% volume growth in 2025, driven by specialty blends and value-added products, with moderate volume growth of 2% to 4% expected for 2026. There is a strong appetite for lithium units in the market, especially in Asia Pacific. SQM believes lithium will remain the dominant technology for batteries, seeing only a small potential market space for sodium-ion batteries. | In the iodine market, SQM noted that some expected capacity from third parties did not materialize in Q4 2025, contributing to higher sales for SQM. New iodine projects in Chile are anticipated to come online in the second half of 2026. Tianqi Lithium, a significant shareholder, has filed to be an active seller of shares, which is a market dynamic rather than direct product competition. Existing investment knowledge highlights that SQM faces formidable competition across all segments from global giants like Albemarle, Ganfeng Lithium, Nutrien, and Ise Chemicals, with new market entrants and technological innovations posing potential challenges to SQM's cost advantage and market share. | The lithium market experienced an inflection point in Q4 2025, with prices driven by stronger-than-expected demand from energy storage systems and some supply disruptions, leading to a tighter market and improving pricing trends. SQM expects the pricing environment in Q1 2026 to be significantly stronger than Q4 2025. Long-term fundamentals for lithium remain strong, primarily driven by electric vehicles and energy storage systems. The iodine market saw record prices by the end of 2025 due to tight supply and strong demand, particularly in x-ray contrast media, with an estimated market growth of 3% in 2026. Specialty Plant Nutrition expects moderate volume growth of 2-4% in 2026 within a stable pricing environment. Lithium prices reached a low point in Q2 2025 but recovered to around $10 per kilogram in Q4 2025, aligning with market indices. Prices are expected to remain volatile in 2026 but closer to current levels than those seen in 2025. Supply disruptions in the lithium market were mainly related to government restrictions on some lepidolite producers in China in the second half of 2025. While sodium-ion batteries are emerging, SQM strongly believes lithium will remain the dominant battery technology. | SQM is entering 2026 with strong operational momentum, improving lithium market conditions, and continued strength in Iodine and Specialty Plant Nutrition. The company expects significantly stronger lithium pricing in Q1 2026 and anticipates record sales volumes for Q1 2026, surpassing Q1 2025 by over 15%. Total lithium production for 2026 is targeted at close to 260,000 tons of LCE, an increase from previous announcements, achieved through optimization and efficiency projects. The 240,000-ton expansion of the Antofagasta chemical plant has been delayed to 2028, but total production forecasts remain unaffected. The Kwinana refinery's ramp-up has been affected by intermittent issues, with a completed solution expected by mid-2026, and the full ramp-up is now expected to move into 2027, meaning 2026 sales will be heavily skewed towards spodumene concentrate. The seawater pipeline project in the Tarapaca region is expected to finish, providing operational flexibility and incremental iodine production capacity, aiming to surpass 17,000 metric tons per year. The final investment decision for the Mt. Holland mine and concentrator expansion is expected by mid-2026, with $200 million allocated for the concentrator expansion in 2027. SQM's 50% share of Mt. Holland spodumene concentrate production is expected to be between 170,000 and 180,000 tonnes (6%) in 2026. Dividends to Codelco from the Nova Andino Litio JV are expected to be paid in April 2026. The Salar Futuro project's environmental approval application is expected in mid-2026. Exploration activities are focused on Australia, Namibia, and Canada. | Critical | 2025 was an important year for SQM. We finished the year by signing our association agreement with Codelco, creating Nova Andino Litio, which enables long-term lithium production from the Salar de Aacama. In Lithium, we achieved record quarterly sales volumes across both our Chilean and international operations. sales volumes exceed 66,000 metric tons in the fourth quarter, more than 50% higher year-over-year. we saw the inflection point in lithium prices, driven by stronger-than-expected demand from energy storage system. our average realized lithium price increased nearly 14% quarter-over-quarter, reaching close to $10 per kilogram in the fourth quarter. we expect the pricing environment in the first quarter to be significantly stronger. We're entering 2026 with a strong operational momentum, improving lithium market conditions and continued strength in Iodine and Specialty Plant Nutrition. We are targeting a strong sales volume in Q1. We hope to surpass the sales volume of Q1 '25 by more than 15%, which would also be a record for the first calendar quarter. our expectation for production have been increased, and we target to produce close to 260,000 as a lithium carbonate equivalent. our sales price in Q1, I can say now that will be substantially higher than Q4 2025. the perspective that we have for this market is quite positive. our total production expected for this year is increasing compared to the previous announcement. | These statements are not historical facts and are subject to risks and uncertainties that could cause actual results to differ materially. prices will remain volatile this year. It is very difficult to predict what will happen in the other quarters. the ramp-up has been affected by intermittent other issues. we are now expecting ramp-up to move into 2027. There is -- we see a small potential market space for the sodium-ion batteries. |
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| SQM observed an inflection point in lithium prices towards the end of 2025, driven by stronger-than-expected demand from energy storage systems, alongside some supply disruptions. The company sees strong long-term fundamentals for lithium, primarily from electric vehicles and energy storage systems. In iodine, record prices were observed by the end of 2025, supported by tight supply and strong demand, particularly in the x-ray contrast media market. The iodine market is estimated to grow by around 3% in 2026, with sales volumes expected to remain stable or increase slightly. Specialty Plant Nutrition saw 3% volume growth in 2025, driven by specialty blends and value-added products, with moderate volume growth of 2% to 4% expected for 2026. There is a strong appetite for lithium units in the market, especially in Asia Pacific. SQM believes lithium will remain the dominant technology for batteries, seeing only a small potential market space for sodium-ion batteries. | In the iodine market, SQM noted that some expected capacity from third parties did not materialize in Q4 2025, contributing to higher sales for SQM. New iodine projects in Chile are anticipated to come online in the second half of 2026. Tianqi Lithium, a significant shareholder, has filed to be an active seller of shares, which is a market dynamic rather than direct product competition. Existing investment knowledge highlights that SQM faces formidable competition across all segments from global giants like Albemarle, Ganfeng Lithium, Nutrien, and Ise Chemicals, with new market entrants and technological innovations posing potential challenges to SQM's cost advantage and market share. | The lithium market experienced an inflection point in Q4 2025, with prices driven by stronger-than-expected demand from energy storage systems and some supply disruptions, leading to a tighter market and improving pricing trends. SQM expects the pricing environment in Q1 2026 to be significantly stronger than Q4 2025. Long-term fundamentals for lithium remain strong, primarily driven by electric vehicles and energy storage systems. The iodine market saw record prices by the end of 2025 due to tight supply and strong demand, particularly in x-ray contrast media, with an estimated market growth of 3% in 2026. Specialty Plant Nutrition expects moderate volume growth of 2-4% in 2026 within a stable pricing environment. Lithium prices reached a low point in Q2 2025 but recovered to around $10 per kilogram in Q4 2025, aligning with market indices. Prices are expected to remain volatile in 2026 but closer to current levels than those seen in 2025. Supply disruptions in the lithium market were mainly related to government restrictions on some lepidolite producers in China in the second half of 2025. While sodium-ion batteries are emerging, SQM strongly believes lithium will remain the dominant battery technology. | SQM is entering 2026 with strong operational momentum, improving lithium market conditions, and continued strength in Iodine and Specialty Plant Nutrition. The company expects significantly stronger lithium pricing in Q1 2026 and anticipates record sales volumes for Q1 2026, surpassing Q1 2025 by over 15%. Total lithium production for 2026 is targeted at close to 260,000 tons of LCE, an increase from previous announcements, achieved through optimization and efficiency projects. The 240,000-ton expansion of the Antofagasta chemical plant has been delayed to 2028, but total production forecasts remain unaffected. The Kwinana refinery's ramp-up has been affected by intermittent issues, with a completed solution expected by mid-2026, and the full ramp-up is now expected to move into 2027, meaning 2026 sales will be heavily skewed towards spodumene concentrate. The seawater pipeline project in the Tarapaca region is expected to finish, providing operational flexibility and incremental iodine production capacity, aiming to surpass 17,000 metric tons per year. The final investment decision for the Mt. Holland mine and concentrator expansion is expected by mid-2026, with $200 million allocated for the concentrator expansion in 2027. SQM's 50% share of Mt. Holland spodumene concentrate production is expected to be between 170,000 and 180,000 tonnes (6%) in 2026. Dividends to Codelco from the Nova Andino Litio JV are expected to be paid in April 2026. The Salar Futuro project's environmental approval application is expected in mid-2026. Exploration activities are focused on Australia, Namibia, and Canada. | Critical | 2025 was an important year for SQM. We finished the year by signing our association agreement with Codelco, creating Nova Andino Litio, which enables long-term lithium production from the Salar de Aacama. In Lithium, we achieved record quarterly sales volumes across both our Chilean and international operations. sales volumes exceed 66,000 metric tons in the fourth quarter, more than 50% higher year-over-year. we saw the inflection point in lithium prices, driven by stronger-than-expected demand from energy storage system. our average realized lithium price increased nearly 14% quarter-over-quarter, reaching close to $10 per kilogram in the fourth quarter. we expect the pricing environment in the first quarter to be significantly stronger. We're entering 2026 with a strong operational momentum, improving lithium market conditions and continued strength in Iodine and Specialty Plant Nutrition. We are targeting a strong sales volume in Q1. We hope to surpass the sales volume of Q1 '25 by more than 15%, which would also be a record for the first calendar quarter. our expectation for production have been increased, and we target to produce close to 260,000 as a lithium carbonate equivalent. our sales price in Q1, I can say now that will be substantially higher than Q4 2025. the perspective that we have for this market is quite positive. our total production expected for this year is increasing compared to the previous announcement. | These statements are not historical facts and are subject to risks and uncertainties that could cause actual results to differ materially. prices will remain volatile this year. It is very difficult to predict what will happen in the other quarters. the ramp-up has been affected by intermittent other issues. we are now expecting ramp-up to move into 2027. There is -- we see a small potential market space for the sodium-ion batteries. |
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| Demand fundamentals remain strong for electric vehicles and energy storage systems, with energy storage accounting for over 20% of global lithium demand. China continues to lead the EV market with expected 30% year-on-year growth, representing over 60% of global EV sales. Europe saw strong first three quarters with over 30% year-over-year growth in EVs, while the U.S. had slower growth of 10%. The x-ray contrast media segment, the largest end-use for iodine, continues to grow steadily. The Specialty Plant Nutrition business is seeing sustainable growth by shifting towards tailor-made solutions and higher value blends. ESS demand is estimated to grow between 40% and 50% year-over-year this year, with stable numbers expected for next year. | Ganfeng suggested 30% to 40% lithium demand growth next year, which SQM considers an optimistic projection. SQM believes that most third-party iodine production growth will come from Chile, from caliche ore, and expects this amount not to surpass total demand growth. | The lithium market remains highly volatile, though SQM is cautiously optimistic. Global lithium demand is expected to reach over 1.5 million metric tons this year, representing over 25% growth, and over 1.7 million metric tons in 2026. Iodine prices remain at high levels with a balanced supply-demand environment, but the demand growth for this year is constrained by lack of supply. Demand for iodine is expected to grow by 3% next year due to more capacity arriving in the market, mainly from caliche ore. The fertilizer market continues to see healthy demand and stable prices across most key markets. | SQM expects a positive pricing trend for lithium to continue in Q4 2025, focusing on high-quality production, reliable supply, increasing volumes, and cost reduction. Commercial activity is expected to remain robust in Q4. The seawater pipeline for iodine is over 80% complete and will enable additional iodine supply earlier than expected. A third iodine operation in Maria Elena will add 1,500 tons of capacity. Total CapEx for 2025-2027 is estimated at $2.7 billion, focusing on increasing production capacity, preserving low cost, and ensuring high product quality. The Codelco joint venture is expected to close before the end of 2025. Chilean lithium production is expected to be close to 230,000 tons this year, with plans for continued growth next year. Mt. Holland spodumene concentrate production is maintained at 150,000-170,000 tons for the year, with LCE sales projected to increase to 23,000-24,000 tons. Starting next quarter, Australian sales will be reported by product (spodumene or lithium hydroxide). The Kwinana hydroxide conversion plant is expected to ramp up to near nameplate capacity by the end of 2026. The Salar Futuro project's initial investment is projected for 2030 or 2031, not affecting CapEx in the next 3-4 years. A final investment decision on the Mt. Holland mining concentrator expansion is expected next year. | Critical | During the third quarter, we experienced a more favorable pricing environment for lithium compared with the previous period. Demand fundamentals remain strong, not only for electric vehicles, but also from energy storage systems. We delivered the highest lithium sales volumes in SQM history. Our Australian operation also continued to progress as planned. Iodine prices continue at high levels with a balanced supply-demand environment. In fertilizer, we continue to see healthy demand and stable price across most key markets. We expect demand to reach over 1.5 million metric tons this year, representing an over 25% growth. We have a very strong balance sheet. We continue to see the long-term profitability of Kwinana and the Mt. Holland project to be positive. | Although the market remains highly volatile, we are cautiously optimistic. U.S., they still had a slower growth of 10% year-over-year. All the challenges as any ramp-up in a capital project will happen next year, still remains to be seen. |
Notes
| Date | Comment | Comment Type | Comment Sentiment | Link | IS CHANGE | Price Reaction |
|---|---|---|---|---|---|---|
| 2026-05-26 | SQM's Q1 2026 earnings on May 26, 2026, reported a 165% net income jump and revenue beat estimates, fueled by strong lithium sales volumes and a 95% price increase. Despite an EPS miss, the market reacted positively, with SQM stock rising over 4% (T+2 days), significantly outperforming SPY's modest gains. This indicates investor confidence in SQM's raised lithium sales guidance and robust market demand. | Earnings Transcript | Neutral | False | N/A |
Upcoming Events
| Catalyst ID | Estimated Timing | Estimated Date Start | Estimated Date End | Catalyst | Why It Matters | Ticker Or Theme Specific | Transcript Date | Source Type |
|---|---|---|---|---|---|---|---|---|
| SQM_36315024 | ramping up production until almost reaching nameplate capacity by the end of 2026 | 2025-07-01 | 2026-12-31 | Ongoing ramp-up of lithium hydroxide production at the Kwinana refinery in Australia to reach its 50,000 tonnes per annum nameplate capacity. | Successful ramp-up will increase SQM's higher-value lithium hydroxide sales, potentially improving international realized prices and overall margins, and diversifying its product mix. | Ticker | 2025-11-19 | earnings_transcript |
| SQM_1e91e6f1 | by mid-2026 | 2026-04-01 | 2026-09-30 | Completion and operationalization of the seawater pipeline project, which is expected to be ready during the second or third quarter of 2026, to supply water for iodine production. | This infrastructure project will enhance SQM's iodine production capacity and flexibility, potentially allowing it to capitalize on strong iodine demand and maintain its position as a reliable supplier. | Ticker | 2025-11-19 | earnings_transcript |
| SQM_de186b51 | CapEx program for the period 2025, 2027 | 2025-01-01 | 2027-12-31 | Development of a third iodine operation in Maria Elena to add 1,500 tons of iodine capacity, as part of the 2025-2027 CapEx program. | This expansion will strengthen SQM's long-term iodine supply position, reinforcing its reputation and potentially increasing market share and revenues in a segment with high prices. | Ticker | 2025-11-19 | earnings_transcript |
| SQM_ee2b3a8f | by 2026 | 2026-01-01 | 2026-12-31 | Expansion of lithium carbonate production capacity in Chile to reach 240,000 metric tons per year. | This capacity increase is crucial for SQM to meet growing global lithium demand, particularly from the EV and energy storage sectors, and maintain its market leadership. | Ticker | 2025-11-19 | earnings_transcript |
| SQM_96887543 | somewhere next year | 2026-01-01 | 2026-12-31 | Final investment decision (FID) on the expansion of the Mt. Holland mining and concentrator operations. | An FID would signal continued commitment to increasing spodumene concentrate supply, supporting future lithium hydroxide production and SQM's overall international lithium growth strategy. | Ticker | 2025-11-19 | earnings_transcript |
| SQM_fb8cdf94 | scheduled to be submitted to the SEA Evaluation Service in 2Q 2026 | 2026-04-01 | 2026-06-30 | Submission of the environmental impact study for the Salar Futuro project to the Chilean Environmental Assessment Service (SEA). | This is a critical early step for a significant future lithium project, indicating progress on long-term capacity expansion and potentially impacting investor sentiment regarding SQM's growth pipeline beyond current operations. | Ticker | 2025-11-19 | earnings_transcript |
| SQM_bb2e1cf7 | for the coming year | 2026-01-01 | 2026-12-31 | Evaluation and potential decision to expand SQM's own lithium sulfate production capacity in China. | Expanding in-house capacity in China would reduce reliance on third-party tolling, potentially improving cost efficiency and control over a key part of the lithium value chain. | Ticker | 2025-11-19 | earnings_transcript |
| SQM_103a15fe | during April, I think during April, May, but I think April is going to be the month. | 2026-04-01 | 2026-05-31 | First dividend payment from the Nova Andino Litio joint venture to Codelco. | This payment will provide clarity on the financial implications of the Codelco JV for SQM, impacting cash flow and profitability. Bullish if manageable and in line with expectations, bearish if higher than anticipated. | Ticker | 2026-02-27 | earnings_transcript |
| SQM_330455a6 | We expect to be able to finish our seawater pipeline project in the Tarapaca region | 2026-05-01 | 2026-06-30 | Completion of the seawater pipeline project in the Tarapaca region. | This project will provide additional operational flexibility and unlock incremental iodine production capacity, potentially increasing sales volumes and sustaining high prices. Bullish if completed on schedule, bearish if delayed. | Ticker | 2026-02-27 | earnings_transcript |
| SQM_91fd9bcd | we are now expecting ramp-up to move into 2027. | 2027-01-01 | 2027-12-31 | Completion of the ramp-up phase for the Kwinana lithium hydroxide refinery. | A delayed ramp-up into 2027 means sales will be heavily skewed towards spodumene concentrate for longer, impacting product mix and profitability from higher-value hydroxide. Bullish if issues are resolved and ramp-up accelerates, bearish if further delays. | Ticker | 2026-02-27 | earnings_transcript |
| SQM_cb09556f | by mid this year. | 2026-05-01 | 2026-06-30 | Final Investment Decision (FID) on the expansion of the Mt. Holland mine and concentrator. | This decision will determine the future production capacity of spodumene concentrate from Mt. Holland, impacting SQM's international lithium supply. Bullish if approved, leading to increased capacity; bearish if delayed or not approved. | Ticker | 2026-02-27 | earnings_transcript |
| SQM_bc26eec9 | in the middle of this year. | 2026-05-01 | 2026-06-30 | Application for environmental approval for the Salar Futuro lithium project. | This is a crucial step for the long-term development of a new lithium project, indicating future growth potential beyond current operations. Bullish if application proceeds as planned, bearish if delays or issues arise. | Ticker | 2026-02-27 | earnings_transcript |
| SQM_afb45fa4 | Our first estimation was the first semester. Right now, maybe it will happen in the second semester. | 2026-07-01 | 2026-12-31 | New iodine production capacity from third parties coming online in Chile. | Increased supply from competitors could impact iodine prices and SQM's market share, despite strong demand. Bullish if delays persist, bearish if new capacity comes online as expected. | Theme | 2026-02-27 | earnings_transcript |