A view of a brine pool at SQM lithium mine at the Atacama salt flat is pictured, in Antofagasta region, Chile, May 3, 2023.
For the January to March period, SQM recorded a net profit of $137.5 million, or 48 cents per share, compared to analysts’ projections of $171.2 million, or 63 cents per share, according to LSEG data. Revenue for the quarter reached $1.04 billion, aligning closely with the expected $1.045 billion, as per LSEG estimates.
Global lithium prices have declined by nearly 90% since their peak in late 2022, driven by weaker demand for electric vehicles and an oversupply in the market. SQM, which also produces fertilizers and industrial chemicals, had previously noted a profit decline in the fourth quarter of 2024 due to these low prices and anticipated further price reductions at the start of 2025.
As one of only two lithium producers in Chile, SQM is advancing a partnership with Codelco, the state-owned copper mining company, to develop operations in the Atacama salt flat, known for its rich lithium deposits. The company is awaiting final regulatory approvals, including from Chinese authorities, expected in the second half of 2025.
Addressing recent discussions about the partnership amid Chile’s upcoming November election, SQM’s CEO, Ricardo Ramos, commented: “In the end it’s just noise.” He emphasized that the debates lack substance and are driven by the electoral climate.
Ramos expressed confidence in SQM’s ability to navigate the challenging market, citing its low operational costs and ongoing efforts to further reduce expenses in 2025 and 2026. He added: “I don’t have a crystal ball, but my view is positive for next year – I think prices will go back to a reasonable price environment,” signaling optimism for a recovery in lithium prices.
SQM’s strategic focus on cost efficiency and its partnership in the Atacama region position it to strengthen its role in meeting global lithium demand, particularly for the electric vehicle sector, despite current market challenges.
