Sociedad Química y Minera de Chile reported a second-quarter net profit of US$ 660 million, crushing analyst expectations and surging over 600% from the previous year. The dramatic financial rebound was driven by soaring lithium prices and record-breaking quarterly sales volumes.
The financial results, which outpaced Wall Street and regional consensus figures, highlight a sharp turnaround for the global lithium sector. Producers have weathered a prolonged market slump caused by an oversupply of the metal and slower-than-expected adoption of battery electric vehicles. Yet, surging demand from rapid growth in energy storage systems helped absorb excess capacity and propel profitability across the board.
Lithium Volumes Reach Record Highs as Prices Rebound
The quarterly profit marked an increase of more than 600% compared to the same period a year earlier.
The primary driver behind the earnings surge was the company’s core lithium division. Total lithium-related revenue hit US$ 1.334 millones in the second quarter, representing a 300% jump over the previous year. Sales measured in lithium carbonate equivalent crossed 84,1 mil metric tons, setting a new quarterly company record. Of that total, 75,8 mil metric tons came from Chilean operations managed via Novandino—the joint venture with state-owned Codelco—while 8,3 mil metric tons originated in Australia through the Covalent Lithium partnership with Wesfarmers.
Ricardo Ramos, general manager of SQM, stated that, as anticipated in their previous earnings report, prices increased during the second quarter, driven by stronger-than-expected market demand.
Ricardo Ramos, gerente general, SQM
The average realized price for Novandino during the quarter landed at approximately US$ 21,8 per kilogram, representing a 23% increase from the first quarter and nearly a 160% gain over twelve months. Meanwhile, spodumene concentrate prices reached roughly US$2.048 per metric ton.
First-Half Totals and Broadening Margins Across Divisions
The stellar second quarter lifted SQM’s figures for the entire first half of the year. Total net profit for the first six months accumulated to US$1.024,7 millones, marking a 353.5% increase compared to the US$225,9 millones reported during the same period in the previous year. Total revenue for the first half climbed to US$ 4.228,5 millones, more than doubling the US$ 2.079,3 millones recorded through June 30 of the previous year.
Lithium and its derivatives accounted for 78% of the company’s consolidated gross margin during the first half. Total lithium revenue between January and June reached US$ 2.964,8 millones, up 212.7% year-over-year, as total commercialized volumes expanded by 42% to hit 153,1 mil metric tons of lithium carbonate equivalent. Export values for Chilean lithium overall nearly tripled during the first half of 2026 compared to the prior year.
While lithium commanded the headlines, secondary product lines also contributed to the balance sheet. Iodine and its derivatives brought in US$578,1 millones in revenue during the first half, making up 16% of the consolidated gross margin. Driven by demand for X-ray contrast media and LCD polarizing plates, average realized prices for iodine hit a historic high of approximately US$73,4 per kilogram.
Production Forecasts and Long-Term Market Projections
Looking ahead, corporate leadership remains confident in the structural trajectory of the industry. SQM expects total global lithium demand to surpass 2,1 millones de toneladas in 2026. For the full year, the company projects total production between 280.000 and 290.000 metric tons of lithium carbonate equivalent, with capacity slated to top 300.000 metric tons by the end of 2027.
Ricardo Ramos, general manager of SQM, noted that they now forecast global lithium demand to exceed 2.1 million metric tons in 2026, which further reinforces their confidence in the market’s long-term fundamentals.
Ricardo Ramos, gerente general, SQM
Operational adjustments are already underway to meet that demand. SQM’s hydroxide plant in Chile is currently undergoing conversion into a dual-purpose facility capable of churning out either lithium carbonate or lithium hydroxide depending on prevailing market conditions, with the overhaul scheduled for completion by mid-2027.
