Chilean lithium producer SQM raises US $1.1 billion to double lithium carbonate capacity

SMM12 March 25: Chilean lithium miner SQM said its board of directors has approved the launch of a process to increase the company's capital up to US $1.1 billion.

According to the company's statement, the capital increase plan proposed by the board is to partially fund the US $1.9 billion investment plan for 2021-2024 to expand the production of lithium, iodine and nitrate, mainly in northern Chile. and the Dutch Mountain Lithium hydroxide project in western Australia. The goal is to more than double the annual capacity of Chilean lithium carbonate from 70, 000 tonnes to 180000 tonnes.

The Dutch Hill project, a joint venture with Australian conglomerate Wesfarmers, is expected to produce 50, 000 tons of lithium hydroxide a year, and SQM is expected to approve construction in the first quarter of next year.

The company expects lithium sales to reach nearly 25000 tons in the fourth quarter, a threefold increase from the first quarter, when the coronavirus pandemic hit demand in Asia.

Although there has been little growth in lithium demand this year, SQM said that driven by the electric vehicle industry, lithium demand would still reach 80-1 million tonnes in 2025 and 2 million tonnes in 2030. Demand for lithium hydroxide is expected to grow faster than lithium carbonate.