SQM reports a decline in lithium revenues while maintaining production guidance

Sociedad Química y Minera de Chile (SQM) reported a significant drop in lithium revenues for Q3 2024, reflecting persistent pricing pressures in the global market.

Lithium revenues for the quarter declined 61% year-on-year to US$497.2 million, despite an 18% rise in sales volumes to 51,200 metric tons. Average realized lithium prices dropped by 67%, following an oversupplied market and price-index-linked contracts.

SQM reaffirmed its annual sales guidance of 190,000–195,000 tonnes, with 2024 production expected at 210,000 tonnes, supported by operations in Chile and China, but anticipates further price reductions in Q4 2024. SQM's Mt. Holland project in Australia is ramping up, targeting up to 130,000 tonnes of spodumene concentrate this year and 190,000 tonnes in 2025, while its Kwinana refinery expects its first lithium hydroxide production by mid-2025. While no further cost-related information was given during the call, SQM said the company remains confident in long-term lithium fundamentals and its competitive position.