SQM Hits Record Lithium Sales, Higher Income in Q1 Despite Lower Prices

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Chile's Sociedad Quimica y Minera (Santiago), known as SQM, registered a net income of US$137.5 million during the first quarter of 2025, compared to a loss of US$869.5 million during the same period last year. The positive financial results were driven by demand growth in the lithium sector despite a global price decline and lower taxes.

The difference in the net income was a result of a one-time payment of an income tax expense during Q1 last year that amounted to US$1.168 billion, compared to US$73.4 million this year.

Between January and March, SQM sold 55,000 tons of lithium and derivates, representing an increase of 27% compared to last year and the highest volume for a first quarter. With that, the company generated US$502.9 million, approximately 8% less than during the same period last year, due to lower prices.

The increase in sales was driven by stronger demand from the Chinese and European markets. Most of the revenues and volumes during Q1 came from SQM's Chile division, where most of the company's operations are located.

SQM foresees reaching a lithium carbonate capacity of 240,000 metric tons in its Chilean operations by next year and 100,000 metric tons of lithium hydroxide by the end of this year.

Meanwhile, the company's operations at Mount Holland mine in Australia continue to move forward with spodumene concentrate production, targeting a nameplate capacity of 50,000 metric tons by next year. Additionally, the construction and commissioning of the refinery are still ongoing, with the first production expected in the coming months. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can click here for the plant profile.

Lithium prices have consistently declined since 2023, causing a market shock and resulting in losses. This was the outcome of lower-than-expected sales of electric vehicles worldwide and a ramp-up in global lithium production.

As a result of lower prices, companies reduced production and halted projects across geographies to cope with current market dynamics. Meanwhile, others, such as Rio Tinto (London, England), have pressed the accelerator on lithium projects with the expansion of their mining portfolio.

During the first quarter, SQM saw average lithium prices remain stable compared to Q4 last year. However, the company expects realized prices for the second quarter to be lower than in Q1 as new capacity and supply enter the market.

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