Home > Sustainability > Environment

Environment

Protecting ecosystems, managing impacts and driving climate resilience.

Environmental Stewardship

We embed environmental responsibility into our daily decisions and operations—driven by a commitment to protect ecosystems, reduce impacts, and contribute to a more sustainable future.

We aim to meet stakeholder expectations and care for the environment through the lithium products we produce. Our approach is guided by the commitments outlined in our Environmental Policy and Climate Change Policy, both housed on our Governance page.

ESG Leadership

Our ESG commitments extend beyond our own operations to include our joint venture partners, contractors, and suppliers.

Through our Sustainable Procurement Policy, we aim to:

  • Integrate carbon abatement, energy efficiency, waste minimisation, and water efficiency into relevant contracts.
  • Require selected suppliers to measure, monitor, mitigate, and report greenhouse gas emissions related to their scope of work, as requested by SQM International Lithium.

This policy is supported by our Supplier Code of Conduct, reinforcing our expectations for responsible and ethical practices across our supply chain.

Responsible Water Stewardship

We recognise the growing challenges of climate change, including the risk of water scarcity in regions where we operate. In response, we are committed to optimising water use and reducing our reliance on fresh groundwater across our lithium extraction and processing activities.

We actively implement water efficiency and reuse programs, and monitor water usage and groundwater-dependent ecosystems to ensure responsible management of this critical resource.

Our approach is guided by the principles of the Global Water Stewardship Standard, and reflects our commitment to protecting water for both current and future generations.

Biodiversity

We are committed to protecting biodiversity through careful planning, assessment, and ongoing monitoring across our operations.

Biodiversity surveys and assessments are conducted as part of a comprehensive Environmental and Social Impact Assessment (ESIA) process, in consultation with key stakeholders. We apply a mitigation hierarchy—avoid, minimise, mitigate, rehabilitate, and offset—to guide decision-making and reduce impacts at our extraction and processing facilities.

Our operating assets are located in Australia, where environmental impact assessments are regulated under national and state legislation. Sites with high conservation values are identified and monitored, and we maintain transparent reporting against environmental compliance requirements at Covalent Lithium.

Tailings, Waste and Circular Economy

We manage waste responsibly to minimise risks to people, the environment, and surrounding communities—guided by our commitment to sustainability and continuous improvement.

Tailings Management

Tailings are generated through spodumene concentration and processing. We require all tailings storage facilities (TSFs) to be designed and managed in line with Australian regulatory standards. The TSFs for the operations we have ownership in are engineered to enable water recovery and reuse at the concentrator, supporting our broader water stewardship goals.

Climate Change

Lithium hydroxide is a critical component in battery technologies that enable electromobility and the storage of renewable energy—two pillars of the global transition to a low-carbon future.

Transport contributes approximately 23% of global energy-related greenhouse gas emissions. The shift to electric vehicles is essential to achieving the goals of the Paris Agreement, which aims to limit global warming to well below 2°C. To meet this target, zero-emission vehicles must account for at least two-thirds of new car sales globally by 2030, and nearly all by 2035.

According to the International Energy Agency (2025), lithium demand is expected to grow from 1 TWh in 2024 to up to 4.7 TWh by 2030. Supplying 4 TWh of lithium-ion batteries will require approximately 3.2 million tonnes of lithium hydroxide monohydrate. We are focused on scaling our supply to meet this demand and contribute to a more sustainable future.

Our Carbon Footprint

Each of our assets has a unique Carbon Footprint, shaped by its location and operational activity. The extraction of lithium from hard rock (spodumene) and its conversion into lithium hydroxide involves material greenhouse gas emissions.

Through innovation, research, and continual improvement, our first operating spodumene asset—the Mt Holland Lithium Project —has achieved one of the lowest Carbon Footprints per tonne of lithium hydroxide globally, at 10 tonnes of CO₂ equivalent per tonne of product. This achievement is validated by our Life Cycle Assessment, which has received the ILiA verified PCF stamp.

SQMi is the first lithium producer globally to be awarded ILiA’s new Verified Product Carbon Footprint stamps for both spodumene concentrate and lithium hydroxide monohydrate, positioning our lithium products competitively when assessed by Carbon Footprint. ILiA developed the PCF stamps in response to increasing demand from regulators and the automotive industry for reliable emissions data across raw materials used in EV batteries.

We are committed to measuring and monitoring emissions, and working towards net zero by 2050. Our strategy includes:

  • Supporting increased renewable energy in the grid.
  • Improving operational efficiency through circularity of energy, water, and waste.
  • Advancing electrification through our Electric Era venture capital area.

We continue to explore next steps in decarbonisation through R&D, partner collaboration, venture investment, and ongoing innovation monitoring.

Sustainable development is built into everything we do —from resource efficiency to responsible stewardship.

Our Commitment

Circular Economy in Action

Australia is recognised as one of the world’s 17 ‘megadiverse’ countries, home to around 70% of global biodiversity across less than 10% of the Earth’s land area.

We support the goals of the Kunming-Montreal Global Biodiversity Framework, adopted at COP15 in 2022 under the Convention on Biological Diversity (CBD). This framework sets out a global vision for 2050:

“Biodiversity is valued, conserved, restored and wisely used, maintaining ecosystem services, sustaining a healthy planet and delivering benefits essential for all people.”

SQMi is proud to contribute to this vision through our operations and partnerships.

Our Research and Development team leads innovative programs that apply circularity across energy, water, and waste systems, as well as in our value chain. This includes our joint venture with Altilium, focused on lithium recycling and closing the loop in the battery value chain.

Discover More

Responsible Management

We expect our people to operate with integrity in a responsible, ethical and respectful manner.

Learn more

Indigenous Relations and Communities

Our relationships with Indigenous Peoples and communities are integral to our success.

Learn more

Health and Safety

Safety is not just a priority —it's a fundamental value that shapes how we work every day.

Learn more