Chile’s SQM Sees Big Profit Growth as Lithium Demand Strengthens

Post by : Saif Nasser

In its latest financial results, Chile’s major lithium producer, Sociedad Química y Minera de Chile S.A. — commonly known as SQM — reported a strong rise in profit for the last quarter of 2025. The company said its net profit grew by about 53% compared with the same quarter a year earlier. This rise shows that demand for lithium and other products has strengthened, helping SQM improve its business performance.

For the final three months of 2025, SQM posted a net profit of $183.8 million, up sharply from the previous year. The firm also reported that revenue grew by over 23% to $1.32 billion during the same period, showing that sales were stronger than before. Gross profit for the quarter also climbed significantly, reflecting better margins in key products.

The company’s chief executive said the improved results were driven by higher sales volumes across its lithium businesses. These include operations in the Salar de Atacama — a large salt flat in northern Chile where lithium is mined — and its international lithium division. In late 2025, SQM began seeing early signs of a better balance between supply and demand in the lithium market. A tighter market helped lift prices and improve results.

Lithium is a key material used in batteries for electric vehicles and energy storage systems. As global demand for these technologies grows, lithium producers like SQM can benefit from higher sales and better pricing. While lithium prices have cooled from record highs seen in 2022, the company’s strong sales volumes helped lift profit markedly in the latest quarter.

For the full year, SQM posted a net profit of $588.1 million, reversing a loss of more than $400 million in 2024. This full-year turnaround marked a big improvement for the company’s overall performance. Total annual revenue also rose slightly compared with the previous year.

SQM not only produces lithium but also makes fertilizers and industrial chemicals, such as iodine. The company has been adjusting its operations to focus on areas where demand and prices are strongest. In China, SQM has also been increasing the refining of lithium carbonate — an important battery material — through toll arrangements with local partners.

Industry analysts believe that demand for lithium will continue to grow in the coming years. This growth is tied to the expanding markets for electric vehicles and large-scale battery storage systems. As these technologies become more common, companies like SQM may see more opportunities for sales and profit.

While the full-year revenue increase was modest, the strong quarterly performance highlighted SQM’s ability to adapt to a changing market and improve its profit margin. The company has been working to expand its output and manage supply in ways that better match demand.

Overall, SQM’s latest financial results show a clear recovery and growth in profit. The stronger pricing environment for lithium, combined with higher sales volumes, helped push quarterly profit higher. As the global push for cleaner energy and electric vehicles continues, SQM’s role in supplying key battery materials positions it well for future demand.