Felipe Smith: Hello, Ben. This is Felipe here. How are you?
Ben Isaacson: Great.
Felipe Smith: Yes. I will comment on the contracts. We see signing long-term contracts as very positive because in a way — I mean, we have a long-term plan of sales that involves volume, and this is a way to secure some volume in the future. And at the same time, for the customers, it’s also a way to secure supply for — in order to fulfill their plans. Okay? Now, you have to bear in mind that these contracts are finally a win-win for both parties because these are generally market confirmed contracts that will follow indexes. And on top of it, it has the advantage that basically pushes us to fulfill other achievements in terms of sustainability, quality. So, we see it as a positive driving force for us.
Ben Isaacson: And how much volume are we talking about?
Felipe Smith: I’m sorry, I cannot disclose the details. We only disclose in the case of LG that it is more than 100,000 for the period 2023-2029, but that’s it. We cannot comment for the rest. Sorry, Ben.
Ben Isaacson: That’s okay. And then next was on iodine.
Pablo Altimiras: Yes. Hi, Ben, Pablo Altimiras is speaking. Well, that’s true. I mean, prices are in a high range today. Why we don’t see supply? Well, I would say that because to produce iodine, it’s not so easy. We are talking about — in our case, it’s a mining activity where you need to consider different things to get approvals, to have ready infrastructure. Actually, today, we see that a greenfield agreement project in order to be in production from the very beginning when you just starting the project can last more than five years to get complete. So, it’s not so easy to deliver a new capacity. That’s the reality. And that’s why in SQM, we try to work in advance, be ready for the — to build new capacity. That’s what I can say.
Ben Isaacson: So just on that, if it’s hard to bring on new capacity, do you expect high prices to persist?
Pablo Altimiras: Well, again, it’s a matter of supply and demand. At least in the short term, we don’t see more capacity, and that’s why I already mentioned it that despite of the demand today, it’s not growing, we see a lack of capacity. And that’s why we expect in the whole year to see stable prices, let’s say, in the high part of the group.
Ben Isaacson: Great. Thank you. And then just finally on the EV versus lithium demand growth rates.
Ricardo Ramos: Yes. So, if I understood your question, you’re asking the difference between the EV demand growth and our lithium sales growth?
Ben Isaacson: Yes. Why is — I mean you said EV demand, you expect it to grow at 30%. Lithium demand, you expect it to grow by 20%. Why is there a difference?
Ricardo Ramos: The difference is very easy because you know that lithium is used in different applications and — not only EVs. I mean EV is an important one, of course, it’s the fastest-growing one and the main one, but still we are supplying — I mean, the market needs lithium for many other things, like industrial applications, pharmaceuticals and so on. So, all these other applications do not have the same growth profile as the EVs. That’s the reason.
Operator: Our next question will come from Rafael Barcellos with Banco Santander.
Rafael Barcellos: So recently, you published a press release commenting about the cash offer to acquire the control of Azure Minerals right, that you submitted in early July. So, my question is really about your capital allocation strategy. I mean, should we see the cash offer to Azure as a particular case, especially because SQM is already one of its main shareholders, or should we expect SQM to remain active in these type of M&A initiatives? And my second question is about the national lithium policy in Chile. Could you please give us an update on how conversations are evolving with Chilean authorities? I understand that discussions are still ongoing, but any update here could be helpful to us. Thank you.
