Lithium Giant SQM Boosts Supply Plans as Prices Flick Higher
(Bloomberg) -Piyasa, according to the value of the world’s largest lithium producer SQM increased sales guidance for this year, and after sending a 28% decrease in the second quarter basic gains, he received an optimism grade at prices.
The firm said in a statement that the basic gains attributed to the elements before the elements fall to $ 307.9 million in the last quarter. However, the Chilean manufacturer of battery metal is progressing with an expansion, saying that sales volumes from domestic plants will grow by 10% this year. It also increased sales guidance for Australian operations.
The lithium suffered from a serious global glutin, despite the fact that the output cuts in China still fueled a last rebound, despite the levels of still less than 80% of its peaks. This year, the company continued an estimation for global demand growth.
“The last market dynamics convince us that the third quarter prices can be higher than the second quarter, S SQM said on the slides accompanying the profit notification.
The company’s shares fell 2.9% at 9:57 in New York. At the beginning of this month, they rose to the highest levels for more than a year and participated in a rally for global lithium manufacturers after the stopping of a large mine in China. Battery Giant Contemporary Amperex Technology Co. The operation operated by LTD should be closed for at least three months.
Santiago -based SQM, officially SOC. Quimica & Minera de Chile SA increased sales guidance for an international division to approximately 20,000 tons of lithium carbonate equivalent. The increase of 10% for the Chilean section did not give a volume figure to clarify.
SQM added that the Kwinana Refinery joint attempt in Australia reached the first commercial production in July. The facility should reach a capacity of 2026 to 50,000 tons of lithium hydroxide name plate and half of them can be attributed to SQM.
Lithium prices decreased under the weight of excess supply after the new mines arrived and demand growth slowed down. SQM’s volume approach on value contrasts with the cuts of some high -cost manufacturers. Since the company increased its annual capacity to 240,000 tons of lithium carbonata in 2026 and 100,000 tons of hydroxide compared to 2025, a capital expenditure of $ 750 million.
The total revenues of the company fell by 19% in the second quarter, because spot lithium prices have endured their worst periods for many years. Sales volumes were lower than the first quarter.
Ricardo Ramos, Chairman of the Executive Board, said, “Some contracts of the current contracts have reached the lower limits determined in these contracts and affected the agreed volumes,” he said.
-With the help of Sanders.
(Adds shares in the fifth paragraph, capacity expansions in the eighth paragraph)
There are more stories like this Bloomberg.com
