① Driven by rising lithium prices and record lithium sales, SQM reported its highest profit in nearly two years in its third-quarter report; ② The company anticipates stable demand growth for electric vehicles and energy storage. Battery Demand is rising rapidly and will continue the growth momentum of lithium demand in the fourth quarter.
SQM ( Chilean Minerals & Chemicals), the world's second-largest lithium mining company and the world's largest supplier of brine lithium. The company achieved its highest quarterly profit since 2023 in the third quarter of this year, suggesting that the key battery metal market is finally beginning to emerge from the oversupply situation of recent years .
In its latest quarterly report, SQM disclosed that its adjusted EBITDA for the third quarter was $404 million, the highest level since the same period in 2023 .
In its financial report, the lithium giant stated, "In the third quarter, we achieved the highest lithium sales volume in history , primarily due to stronger-than-expected demand growth. This stronger-than-expected demand was driven not only by the electric vehicle industry but also by battery energy storage systems (BESS), which now account for more than 20% of global lithium demand . Furthermore, we observed declining inventory levels across the entire supply chain, coupled with some supply disruptions in recent months , which together contributed to the shift in overall price trends."
In the third quarter of this year, SQM sold 72,900 metric tons of lithium and its derivatives, up 43% year-on-year; sales revenue reached US$603.7 million, up 21.4% year-on-year.
The company's CEO, Ricardo Ramos, said that the company expects this upward trend to continue in the fourth quarter , supported by strong demand for lithium from electric vehicles and energy storage systems.
The shift in the global lithium metal supply and demand paradigm has led to a rebound in lithium prices, which is also a key reason for SQM's improved performance.
As of press time, the most actively traded lithium carbonate futures contract in China briefly broke through the 100,000 yuan/ton mark on Wednesday , reaching a new high since July 2024. This figure is more than 40,000 yuan higher than the low point in June, but it is still more than 80% lower than the high of 570,000 yuan/ton in November 2022 .
This is why most global lithium mining stocks have experienced a "halving" in the past three years, but have risen significantly in recent months.
(SQM, Albemarle) Weekly chart (Source: TradingView)
SQM's main competitor , Albemarle, said earlier this month that global electric vehicle sales grew by 30% in the first nine months of this year, ending in September, while demand for lithium-ion batteries for energy storage surged by 105% year-on-year .
Reports also surfaced last weekend regarding Ganfeng Lithium , a domestic lithium mining company. Chairman Li Liangbin predicts that demand will grow by 30% next year, and the change in the supply and demand situation may push the price of lithium carbonate to break through 150,000 or even 200,000 yuan per ton.
(Article source: CLS)
