Who Owns SQM Company?

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Who Owns SQM?

Sociedad Química y Minera de Chile S.A. (SQM) is a global leader in specialty chemicals. Its ownership has seen significant shifts, notably with a recent agreement with Chile's state-owned copper giant, Codelco. This partnership is poised to reshape the global lithium market.

Understanding a company's ownership is key to grasping its strategic direction and market influence. SQM, founded in 1968, has evolved from a mixed state-private entity to a major global producer of lithium, essential for electric vehicle batteries, and other vital chemicals.

The ownership structure of SQM is complex, involving significant stakes held by entities such as the Pampa Group and Tianqi Lithium. Recent developments, including the agreement with Codelco, are set to further influence the company's trajectory. This partnership highlights the strategic importance of SQM's operations, particularly in the production of lithium, a critical component for SQM PESTEL Analysis.

The origins of SQM trace back to June 11, 1968, when it was established as a mixed company, Sociedad Minera Mixta. Initially, private investors, through Compañía Salitrera Anglo-Lautaro holding 62.5%, and the Chilean State, represented by the Economic Development Agency (CORFO) with 37.5%, formed its ownership structure. This consolidation brought together assets from Compañía Salitrera Anglo-Lautaro and CORFO's Empresa Salitrera Victoria, with the Chilean government providing the initial capital.

Formation as a Mixed Company

SQM was founded as a mixed company, combining private and state interests. This structure aimed to leverage national mineral resources for development.

State Nationalization

In 1971, the Chilean State, via CORFO, took full control, acquiring 100% of the company. This move nationalized the exploitation of nitrates.

Privatization and Shift in Control

Between 1983 and 1988, a privatization process transferred ownership. Julio Ponce Lerou gained control during this period.

Acquisition of State Shares

Ponce Lerou acquired 93% of the state's shares for 20,300 million pesos. This transaction was valued against an approximate market value of 35,800 million pesos.

Family Involvement

Following privatization, several relatives of Ponce Lerou acquired significant stockholdings. They also secured positions on the company's board of directors.

Early Development Focus

The company's initial operations were closely tied to Chile's national development strategy. Its focus was on mineral extraction and processing, primarily for domestic use with export potential.

The early years of SQM were characterized by its integration into Chile's national development plans, focusing on mineral extraction and processing. A significant turning point occurred in 1971 when the State of Chile, through CORFO, nationalized nitrate exploitation, acquiring 100% ownership. However, a pivotal privatization process took place between 1983 and 1988. During this era, Julio Ponce Lerou, who was married to the daughter of Augusto Pinochet, assumed control of the company. He was appointed to the board prior to privatization and subsequently became the president of the privatized entity in 1987. The transfer of 93% of the state's shares to Ponce Lerou for 20,300 million pesos, a figure notably lower than the approximate market value of 35,800 million pesos at the time, marked a contentious early ownership event. This period also saw several of Ponce Lerou's relatives acquiring substantial stockholdings and board positions, significantly shaping the company's control structure and influencing its direction, which you can read more about in the Target Market of SQM article.

Key Ownership Milestones

SQM's ownership has undergone significant transformations, moving from a mixed state-private entity to full state control, and then to private hands through a controversial privatization process.

• Established as a mixed company on June 11, 1968.
• Compañía Salitrera Anglo-Lautaro held 62.5% and CORFO held 37.5% initially.
• State nationalized 100% ownership in 1971.
• Privatization occurred between 1983 and 1988.
• Julio Ponce Lerou gained control during the privatization period.
• Acquisition of 93% of state shares by Ponce Lerou for 20,300 million pesos.

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The ownership of SQM has undergone significant transformations since its privatization in the 1980s, with its listing on the NYSE in 1995 marking a pivotal moment. These changes have shaped the company's strategic direction, particularly concerning its expansion and its role in the global lithium market.

The Pampa Group, under the control of Julio Ponce Lerou, continues to be the largest shareholder in SQM, holding a 26% stake as of December 31, 2024. This significant ownership has historically granted considerable influence over the company's governance. China's Tianqi Lithium Corp. is the second-largest shareholder, maintaining a 22% interest after its 2018 acquisition of a 23.77% stake from Nutrien Ltd. for approximately $4.1 billion. Kowa holds a 2% stake. Beyond these major holders, a substantial portion of SQM's shares is distributed among institutional investors and through American Depository Receipts (ADRs) traded on the NYSE. As of August 15, 2025, SQM has 364 institutional owners, including prominent names like Baillie Gifford & Co, Manning & Napier Advisors Llc, Grantham, Mayo, Van Otterloo & Co. LLC, BlackRock, Inc., Lazard Asset Management Llc, and The Vanguard Group, Inc., collectively holding 53,302,294 shares. These shifts in major shareholding have significantly impacted company strategy, particularly in its global expansion and its approach to the burgeoning lithium market. Understanding who owns SQM is crucial for grasping the dynamics of the global specialty chemicals and fertilizer market, as detailed in this Revenue Streams & Business Model of SQM article.

Key Stakeholders in SQM

The SQM company ownership structure is characterized by a mix of strategic corporate investors and broad institutional holdings.

• The Pampa Group is the largest shareholder, controlling 26% of SQM.
• Tianqi Lithium Corp. holds a significant 22% stake, making it a key international investor.
• Institutional investors, such as BlackRock and The Vanguard Group, collectively manage a substantial portion of SQM shares.
• As of August 15, 2025, there are 364 institutional owners of SQM stock.

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The Board of Directors for SQM is comprised of eight regular members, each serving a three-year term. The most recent election took place on April 25, 2024. As of May 27, 2025, Gina Ocqueteau Tacchini assumed the role of Chairwoman, with Gonzalo Guerrero Yamamoto transitioning to Vice Chairman after serving as Chairman from 2022 to 2025. Other board members include Patricio Contesse Fica, Hernán Büchi B., Ashley Luke Ozols, Antonio Gil Nievas, Georges De Bourguignon Arndt, and Xu Tieying. Notably, Gina Ocqueteau Tacchini, Antonio Gil Nievas, and Ashley Luke Ozols are considered independent directors under both Chilean corporate law and NYSE regulations.

SQM's ownership structure significantly influences its board composition, with voting power concentrated among its largest shareholders. As of December 31, 2023, the Pampa Group and Tianqi Lithium together controlled 47.92% of SQM's total outstanding shares. Their substantial holdings, particularly in Series A shares where they own 94.19%, grant them the ability to elect six of the eight directors. This concentration of voting rights, often facilitated by dual-class share structures, allows these major shareholders to exert considerable influence over the company's strategic decisions and direction, a key aspect of Brief History of SQM.

Shareholder Influence and Governance

Recent governance discussions have centered on the definitive agreement with Codelco. Tianqi Lithium, holding a 22% stake in SQM, has advocated for a shareholder vote on this agreement, citing potential dilution of its interests. However, Chilean regulators have permitted the transaction to proceed without a full investor vote, with the deal expected to close in early 2025. Tianqi Lithium has indicated it may explore legal avenues to protect shareholder rights, underscoring ongoing tensions regarding control and strategic alignment.

• 47.92%: Combined ownership of Pampa Group and Tianqi Lithium as of December 31, 2023.
• 94.19%: Pampa Group's ownership of Series A shares.
• 6 of 8: Directors elected by major shareholder groups.
• 22%: Tianqi Lithium's stake in SQM.
• Early 2025: Expected closing of the Codelco agreement.

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Recent years have brought significant changes to SQM's ownership landscape, largely influenced by Chile's National Lithium Strategy. A pivotal development was the preliminary Association Agreement signed in December 2023, solidifying into a definitive agreement on May 31, 2024, for joint lithium exploitation in the Salar de Atacama from 2025 to 2060.

This strategic partnership will see Codelco, Chile's state-owned copper giant, secure a majority stake of 50% plus one share in the new joint venture. While SQM will retain operational control until 2031, Codelco will assume general management thereafter, marking a substantial shift in control over SQM's key lithium assets. This move reflects a broader trend of increased state involvement in critical mineral resources.

Codelco's Majority Stake

Codelco will hold a 50% plus one share stake in the new joint venture for Salar de Atacama exploitation. This partnership is set to commence operations in 2025.

State's Financial Benefit

The Chilean state is projected to capture a significant portion of the operating margin from new production. This ranges from approximately 70% between 2025 and 2030, rising to 85% from 2031.

Tianqi Lithium's Opposition

Tianqi Lithium, a significant SQM shareholder with a 22% stake, has voiced strong opposition to the deal. They are concerned about potential dilution of their stake and its impact on investment income.

International Expansion Amidst Changes

Despite domestic strategic shifts, SQM continues its global expansion. Investments in Australia, including the Mt. Holland lithium project and Kwinana refinery, are progressing, with the refinery expected to produce 50,000 tons of battery-grade lithium hydroxide annually by 2025.

The company's financial performance shows a recovery, with revenues of US$2,079.3 million for the first six months of 2025 and a net income of US$226.0 million for the same period, a notable improvement from a net loss in the prior year. This financial rebound occurs amidst ongoing market adjustments and strategic realignments, highlighting the dynamic nature of SQM ownership and operations. Understanding the Growth Strategy of SQM provides further context to these ownership trends.

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