Ajay-SQM GroupINNOVATION & INFORMATION

Ajay-SQM Basic Information• Ajay-SQM Group is a collaboration between three iodine derivatives facilities/companies in Chile, France, and the United States that are jointly owned by SQM and Ajay Chemicals

• Each facility uses equivalent chemistries to produce iodine derivatives from Iodine supplied by SQM, with the North American facility being the R&D hub.

• The Group is currently the world’s largest consumer of iodine and seller of iodine derivatives; market share approximately 21%

• The group maintains significant infrastructure to recycle Iodine from various waste streams

• As a whole, the group employs between 150-160 people across all three plants

•Profitable and debt-free

Ajay North America - Headquarters

Ajay North America - Lab

Ajay North America - Lab

Ajay-SQM Product DistributionAJAY-SQM REVENUE BY PRODUCT TYPE WORLDWIDE IODINE CONSUMPTION

Animal Feed16%

Nylon12%

Pharmaceuticals20%

Human Nutrition8%

LCD28%

Others16%

Iodine Consumed by Usage

Animal Feed

Nylon

Pharmaceuticals

Human Nutrition

LCD

Others

Nylon; 34,70%

Others; 19,66%

Animal Feed; 16,08%

Pharma; 15,14%

LCD; 9,79%

Human Nutrition; 4,63%

2017 ASG split by Usage $

Nylon

Others

Animal Feed

Pharma

LCD

Human Nutrition

Others : Includes compounds for industrial uses Semiconductors-CF3I, Polymer Crosslinking-CH2I2, and Screen Printing-SMP

Ajay-SQM Product DistributionDERIVATIVES WE MANUFACTURE

• Most Basic Iodides (NaI, KI, LiI, Etc.)

• Most Basic Iodates (NaIO3, Ca(IO3)2, KIO3)

• Animal Feed Iodides (EDDI)

• Some Alkyl Iodides (MeI, CH2I2, CHI3)

• Some Aryl Iodides (Iodobenzene)

• Misc Items like CF3I and Selenites

DERIVATIVES WE DO NOT MANUFACTURE

• X-Ray Contrast Media

• Some Fluorochemical Derivatives

• Biocides like IPBC

• Disinfectants like PVP-I

Current Innovation ProjectsPEROVSKITE SOLAR CELLS

▪ Uses combinations of organic and metallic iodide salts to form the base of a solar cell

▪ Significant potential for widescale adoption

▪ Some companies have been contacted and samples sent

▪ A few derivatives have production procedures written (FAI, MAI, PbI2)

CF3I

▪ Significant interest in the material

▪ Used in electronics etching in a few MT quantities

▪ A project is in progress to increase capacity to 100’s of MT of CF3I for refrigerants is in progress

CF3I InformationCURRENT USAGE (~40MT)

• Used primarily as a fire extinguishing agent (Replacement of Halon 1301)

• Minimal Ozone Depletion Potential (<0.001 ODP)

• Lower Global Warming Potential than many alternatives (0.4 GWP)

PREDICTED USAGE

• Significant development in the use as a refrigerant

• Joint development with another manufacturer to produce large quantities of CF3I in 5 years

• Significant possibility to replace SF6 in electrical insulation. (~ 8,000 MT per year, but being phased out)

• Insulating mixtures often 20% CF3I, 80% N2

•Used in electronics etching (semiconductors) in a few MT quantities as well

Perovskite Solar Cell InformationCELL STRUCTURE INFORMATION

~20% Overall efficiency

Perovskite crystal structures absorb light, which is then converted to electricity

The Perovskites are made of iodides and other halide compounds

Smaller cost per kWh for this type of solar cell than traditional silicon cells

Commercial cells expected to be available starting around 2019

Arrows Represent Sunlight entering Perovskite Based Cell

Potential Innovation Projects▪ Hypervalent Iodine Catalysts▪ These compounds are used in oxidations and other reactions in pharmaceutical and reagent synthesis.

▪ Example Compounds : Iodobenzene Diacetate, Dess-Martin Periodinane, Diphenyliodonium Chloride

▪ Semiconductor Applications ▪ Iodine derivatives have seen significant interest in their ability to modify silicon and other

semiconductor surfaces

▪ Diiodosilane, Iodosilanes, Trifluoroiodomethane

▪ Misc. Uses ▪ Gold Leaching with I-/I2 solutions (Electronic Waste Recovery & Mining)

▪ Iodides in Battery Manufacture

Images of Example Compounds