‘Understanding Tianqi Lithium’ Episode 04: SQM’s Equity, Earnings, and Resource Collaboration—Exactly How Much Do Shareholders Own?

II. First Accounting Perspective: What Equity Does Tianqi Actually Hold in SQM? 1. Shareholding Ratio and Control Are Two Distinct Concepts In December 2018, Tianqi Lithium acquired a 23.77% stake in SQM, becoming its second-largest shareholder. Following subsequent capital adjustments and shareholding changes, its stake stood at 21.90% as of the most recent semi-annual report. This represents a significant minority equity interest—but it is not equivalent to control over SQM. Control generally implies the ability to direct relevant activities, appoint or remove key management personnel, and enjoy variable returns. Significant influence, by contrast, means participation in financial and operational policy decisions—but without unilateral authority over those policies. Tianqi has appointed three directors to SQM’s board and participates in SQM’s operational oversight through its shareholder rights—consistent with the definition of ‘significant influence.’ SQM remains an independent listed company, with its own board, management team, debt obligations, projects, and dividend policies. This distinction critically affects how readers interpret each figure: SQM’s revenue does not automatically become Tianqi’s revenue; SQM’s debt does not proportionally translate into Tianqi’s interest-bearing liabilities; what Tianqi is entitled to is a profit share, shareholder rights, and cash distribution opportunities commensurate with its ownership stake and level of influence. 2. The 21.90% Stake Is Not a ‘Pass-Through’ Percentage Across All Assets SQM’s business spans lithium and its derivatives, potash, specialty plant fertilizers, iodine and its derivatives, and industrial chemicals. Tianqi holds shares in SQM—the company—not a 21.90% slice of every factory, contract, or mining right individually owned by SQM. Particular care must be taken to distinguish between SQM at the corporate level and the Atacama Salt Flat joint venture level. SQM operates its lithium business in Chile, and related operations were later transferred into the Nova Andino Litio SpA joint venture structure. Tianqi’s 21.90% stake continues to correspond to shareholder rights in SQM as a corporate entity—but voting rights, management arrangements, profit distribution, and balance sheet allocations within the joint venture are governed by the agreement between SQM and Codelco. Describing Tianqi’s ‘21.90% stake in SQM’ as ‘21.90% control over the Atacama Salt Flat’ conflates two distinct legal entities. 3. Asset Share and Investment Book Value Are Also Different According to Tianqi’s semi-annual report, SQM’s total assets amounted to RMB 113.388 billion and net assets to RMB 59.094 billion as of the end of the first half of 2026. Applying the 21.90% ownership ratio yields a net asset share of RMB 9.414 billion. This RMB 9.414 billion is a snapshot calculation based on SQM’s reported net assets and Tianqi’s ownership percentage—it does not equal the book value of Tianqi’s long-term equity investment in SQM on Tianqi’s balance sheet, nor does it reflect SQM’s market capitalization. Under the equity method of accounting, the initial investment cost is recognized upon acquisition. Thereafter, the carrying amount of the investment is adjusted for Tianqi’s share of SQM’s net income or loss, dividends received, other comprehensive income, foreign exchange fluctuations, and impairment test results. The investee’s (SQM’s) book net assets, Tianqi’s accounting book value for this investment, and the market price quoted for SQM’s shares answer three different questions: ‘How much net assets does the investee company hold on its books?’, ‘How much is this investment recorded for on Tianqi’s financial statements?’, and ‘What price is the market willing to pay for this company?’ One figure cannot substitute for another.

‘Jianyue Daily’ – December 28: Xiaomi SU7 Officially Unveiled; Lei Jun Showcases Electric Drive, Die-Casting, Intelligent Driving, and Smart Cabin Technologies; NIO’s NOP+ Urban Coverage Reaches 320,000 km Across 208 Cities

On December 28, Xiaomi Auto held a technology launch event. At the event, Lei Jun announced that the Xiaomi SU7 will feature Xiaomi’s self-developed 800V silicon carbide high-voltage platform, achieving an actual maximum vehicle voltage of 871V and enabling a range gain of 220 km after just five minutes of charging. Regarding battery technology, the high-end SU7 models will be equipped with CATL’s Kirin battery pack, adopting Cell-to-Body (CTB) integration. The combined thickness of the battery pack and vehicle floor is only 120 mm, with a battery pack volume utilization rate of 77.8%. The mass-production vehicle’s maximum battery capacity is 132 kWh, delivering a maximum range exceeding 1,000 km. In the future, the maximum battery capacity will reach 150 kWh, extending the range beyond 1,200 km. For safety, the SU7 battery pack adopts an inverted cell arrangement, features 17 layers of high-voltage insulation protection, incorporates active cooling technology with a water-cooling surface area of 7.8 m², and fills both left and right sides of the battery pack with 165 aerogel thermal insulation sheets—significantly enhancing thermal isolation performance. Lei Jun stated that Xiaomi has established its own battery pack manufacturing facility, and battery packs currently account for 40–50% of the total cost of Xiaomi Auto’s first vehicle. According to prior listings from China’s Ministry of Industry and Information Technology (MIIT), the Xiaomi SU7 is offered with two battery capacities—73.6 kWh and 101 kWh—with pure-electric ranges of 628 km / 668 km and 750 km / 800 km, respectively. The corresponding vehicle curb weights are 1,980 kg and 2,205 kg, while the total mass of the power battery packs is 579 kg and 645.8 kg, respectively. In terms of whole-vehicle thermal management, the Xiaomi SU7 employs a dual-mode heat pump system. The direct mode dedicates thermal energy exclusively to the passenger cabin; the indirect mode enables multi-purpose heat utilization—linking multiple thermal circuits inside the vehicle to integrate the heat pump air conditioner, heater, and waste heat generated by the battery, thereby directly heating both the passenger cabin and the battery pack. Maximum battery heating power reaches 18 kW. Regarding electric drive systems, Xiaomi Auto unveiled three motors: the V6, V6S, and V8S. The V6 achieves a rotational speed of 21,000 rpm, delivers 400 N·m of torque, and outputs up to 220 kW of peak power; the V6S also spins at 21,000 rpm, produces 500 N·m of torque, and delivers up to 275 kW of peak power; the V8S motor achieves a top rotational speed of 27,200 rpm and is scheduled for launch in 2025. Currently, the V6 and V6S motors have entered mass production and will power Xiaomi’s debut vehicle, the SU7. 2. SQM and Chile’s State-Owned Copper Company (Codelco) Reach Agreement on Atacama Project Development On December 27, SQM announced that it had signed a Memorandum of Understanding (MoU) with Chile’s National Copper Corporation (Codelco) regarding operational and development rights for the Salar de Atacama project from 2025 through 2060. The announcement states that SQM and Codelco will jointly establish a new company—NewCo (name pending)—in January 2025. NewCo will assume the existing contractual obligations between SQM and Codelco and expand exploration activities across the Atacama Salt Flat. NewCo will be responsible for future lithium salt production at the Atacama Salt Flat. SQM indicated that Codelco will hold the majority equity stake in NewCo, with the remainder held by SQM. Starting January 2031, Codelco will receive allocation rights to 50.01% of NewCo’s total output of lithium salts and other metals, plus an additional production and sales quota of 165,000 tonnes of LCE (lithium carbonate equivalent).

SQM Files Salar de Atacama Technical Report Summary and Consents

Apr 15, 2026

Sociedad Química y Minera de Chile (SQM) filed a Form 6-K disclosing Technical Report Summaries for its Salar de Atacama operations, including formal consents from Qualified Persons Juan Becerra and Rodrigo Riquelme dated April 13, 2026.

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