[SMM Analysis] SQM Quarterly Profit Hits Two-Year High

SQM's Q3 2025 financial report showed adjusted EBITDA reached $404 million, the highest level since 2023.
This performance was driven by the recovery in lithium prices and the company's record lithium sales. In Q3, SQM's net profit rose 35.8% YoY to $178 million, while revenue increased 8.9% YoY to $1.173 billion.

SQM delivered outstanding results this quarter, with not only strong profit metrics but also steady revenue growth. Revenue from the company's lithium and derivatives business reached $603.7 million, up 21.4% YoY.

Sales growth was particularly notable, with lithium sales volume reaching 72,900 mt in Q3, up 43% YoY, setting a new company record. This indicates accelerating recovery in market demand.

Stronger-than-expected lithium demand was the key factor behind SQM's positive performance. CEO Ricardo Ramos noted, "Robust lithium demand growth is coming not only from the EV sector but also from BESS, which now accounts for over 20% of global lithium demand."

The energy storage market is becoming a new engine for lithium demand. Data show that ESS battery cell production reached 409.4 GWh in January–October 2025, surging 55% YoY. SQM's main competitor, Albemarle, also reported that lithium-ion battery demand for energy storage surged 105% YoY in the first nine months of this year.

However, SQM executives also emphasized caution regarding market volatility. CEO Ramos stated, "We remain cautiously optimistic, although the market remains highly volatile."

While achieving strong results, SQM has not overlooked potential risks. The company highlighted challenges such as supply chain disruptions, intensifying market competition, regulatory changes, and global economic uncertainty.

From capital markets to industrial demand, signals of recovery in the lithium industry are clear. Driven by the dual engines of EVs and ESS, the lithium market is gradually emerging from a prolonged downturn and entering a new growth cycle.