Tesla, page-14

From SQM results Q+A;

Joel Jackson

Okay. Second question and it’s been very topical of course last 24 hours on water and brine. So, can you give us an update on, I know you will be able to pump less brine because the water levels have gone down, I believe a centimeter. Where are we on that? And then, can you talk about some of the headlines about in Atacama maybe trying to restrict new water rights in Chile, out of Atacama. Will this affect any of your current operations, or more importantly, as you move to 180,000 tons, could this cause some restriction?

Patricio Solminihac

Regarding this question, they are two very different questions, and I’ll answer both of them. But before, in general, we don’t see any restriction for us to produce as we have planned and to be able to have enough lithium brine in order to be able to produce according to our plan.

Regarding the situation on the brine extraction, we are working with the authorities in order to comply with the plan. And we see that because of that and because of our objective of increasing lithium without more extraction of brine, we will be producing less potassium chloride. So, basically, we’ll continue with our plan in having enough brine for our production plant and at the same time having less production of potassium chloride.

A completely different thing is what was reported yesterday because of an interview of an authority is regarding the freshwater. Freshwater are completely different under growing. And we today operate wells in the east part of the Salar that allow us to have 250 liters per second, which is less than 4% of all the rights that are in the complete basin. And what was reported is a restriction in the south part of the Salar, where there are other companies extracting water for copper production. So, we don’t see any effect on our small quantity of water. And besides that according to our production plans, we expect to increase our lithium production without needs of more fresh orders than the one that we have.