.jpg)
1 hour ago
4
Article content
(Bloomberg) — SQM reported a sharp increase in first-quarter profit and raised its lithium sales forecast, betting that robust demand from battery storage systems will keep the market tightly supplied.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The Chilean producer posted adjusted Ebitda of $837 million for the three months ended March 31, more than double the year-ago level and higher than the average analyst estimate. Revenue climbed to $1.8 billion, also just ahead of expectations.
Article content
Article content
SQM said lithium sales volumes reached about 69,000 metric tons of lithium carbonate equivalent during the quarter as the company operated “at full capacity” to meet demand. The company now expects lithium sales volumes to increase about 15% this year, up from a prior growth forecast of 10%.
Article content
Article content
The results are among the strongest since the peak of the lithium boom in 2022, following two years of collapsing prices that forced producers across the industry to cut costs, delay projects and idle capacity. The recovery comes as rising demand from energy storage and electric vehicles tightens global lithium markets.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
SQM is ramping up production with management emphasizing a strategy focused on maximizing output and maintaining low costs rather than attempting to restrict supply to support prices. Chief Executive Officer Ricardo Ramos said global lithium demand could exceed 1.9 million tons in 2026, driven in part by rapid growth in battery energy storage systems.
Article content
“Market dynamics continue to suggest a tight balance between supply and demand,” Ramos said in the statement. “The positive pricing trend seen in recent months could continue in the short term.”
Article content
At the center of SQM’s long-term growth plan is Salar Futuro, a new extraction approach designed to reduce freshwater consumption and lower environmental impact at the Salar de Atacama..
Article content
On a call Wednesday, analysts are expected to press management on pricing trends. Investors will also focus on the company’s partnership with state-owned Codelco, which extends SQM’s Atacama operations through 2060.
Article content
English (US)