The composition of inventory at each period-end is as follows:

Type of inventory	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Raw material		12,508		10,694
Production supplies		41,114		31,007
Products-in-progress		527,118		487,830
Finished product		603,036		563,497
Total		1,183,776		1,093,028

As of December 31, 2021, and 2020, the Company held caliche stockpiles, solutions in solar ponds and intermediary salts amounting ThUS$ 458,913 and ThUS$ 422,535, respectively (including products in progress).

As of December 31, 2021, bulk inventories recognized within work in progress and finished goods were ThUS$ 111,316 and ThUS$ 99,551 respectively. As of December 31, 2020, bulk inventories recognized within work in progress and finished goods were ThUS$ 108,909 and ThUS$ 176,561, respectively.

As of December 31, 2021, and 2020, inventory allowances recognized, amounted to ThUS$ 75,892 and ThUS$ 80,930, respectively. For finished and in-process products, recognized allowances include the provision associated with the lower value of stock (considers lower realizable value, uncertain future use, reprocessing costs of off-specification products, etc.), provision for inventory differences and the provision for potential errors in the determination of inventories (e.g., errors in topography, grade, moisture, etc.). (see Note 3.14).

For raw materials, supplies, materials and parts, the lower value provision was associated to the proportion of defective materials and potential differences.

The breakdown of inventory allowances is detailed as follows:

Type of inventory	As of December 31, 2021		As of December 31, 2020
		ThUS$		ThUS$
Raw material and supplies for production		1,865		1,934
Products-in-progress		59,858		66,122
Finished product		14,169		12,874
Total		75,892		80,930

The Company has not pledged inventory as collateral for the periods indicated above.

As of December 31, 2021, and 2020, movements in provisions are detailed as follows:

Conciliation	As of December 31, 2021			As of December 31, 2020			As of December 31, 2019
	ThUS$			ThUS$			ThUS$
Beginning balance		80,930			88,174			105,282
Increase in Lower Value (1)		(3,650	)		(5,404	)		(6,987	)
Additional Provision Differences of Inventory (2)		330			(704	)		(123	)
Increase / Decrease eventual differences and others (3)		-			1,244			(6,262	)
Provision Used		(1,718	)		(2,380	)		(3,736	)
Total changes		(5,038	)		(7,244	)		(17,108	)
Final balance		75,892			80,930			88,174

(1)

There are three types of Lower Value Provisions: (a) Economic Realizable Lower Value, (b) Potential Inventory with Uncertain Future Use and (c) Reprocessing Costs of Off-Specification Products.

(2)

Provisions for Inventory Differences generated when physical differences are detected when taking inventory, which exceed the tolerance levels for this process.

(3)

This algorithm corresponds to the provision of diverse percentages based on the complexity in the measurement and rotation of stock, as well as standard differences based on previous results, as is the case with provisions relating to Commercial Offices.