Chile’s Lithium Producer SQM Posts US$660 Million Quarterly Profit

Sociedad Química y Minera de Chile (SQM) reported Q2 revenue of US$2.5b and EPS of US$2.31, both exceeding estimates. Analysts revised 2026 revenue forecast to US$7.77b (down from US$7.98b) but raised EPS forecast to US$6.90 (up from US$6.58). The average price target remains US$84.95, with a wide range of US$44.35 to US$110.

SQM reported a net income of $1.02B (US$3.59 per share) for 1H 2026, up 353.5% YoY. Revenues reached $4.23B, a 103.4% increase. Lithium sales volumes hit a record 84k metric tons of LCE. CEO Ricardo Ramos highlighted strong demand and long-term growth prospects in lithium, iodine, and specialty plant nutrition.

SQM reported Q2 2026 earnings of $2.31 per share on revenue of $2.47 billion, exceeding estimates. Record lithium sales, higher prices, and strong iodine and specialty plant nutrition results drove performance. Shares rose 2.98% in premarket trading. The company expects 2026 lithium demand to exceed 2.1 million metric tons and plans $3 billion in capex through 2028.

Lithium equities fell after Chile’s government outlined a National Lithium Strategy requiring future Atacama salar developments to be structured as public-private partnerships with state control. SQM’s NY shares dropped 2.00% to $67.06, while the LIT ETF rose 1.31% to $69.32. Albemarle edged down 0.09% to $117.67.

SQM and Wesfarmers said Covalent Lithium has approved a final investment decision to expand the Mt Holland lithium project. The plan adds a new ore sorting facility and second concentrator, targeting output to rise from about 380,000 to 760,000 tonnes per year of 5.5% Li2O spodumene concentrate. SQM’s capex share is estimated at USD 450-500 million, with production starting in 1H 2030.

SQM and Wesfarmers announced a final investment decision to expand the Mt Holland lithium project via their Covalent Lithium JV. The expansion will add a second concentrator and new ore sorting, doubling spodumene concentrate output to about 760,000 tonnes per year from ~380,000. SQM’s capex share is estimated at US$450 million to US$500 million, with first production expected in 1H 2030.