SQM Reports Record Lithium Volumes as Chile Producer Eyes $3 Billion Expansion
Chilean miner posted strongest quarterly lithium sales amid recovering prices, while advancing major Salar Futuro project and raising 2026 demand outlook.
Record Lithium Performance Drives Q2 Results
Sociedad Química y Minera de Chile S.A. (SQM) reported record quarterly lithium sales volumes as pricing strengthened in the second quarter of 2026, with the Chilean producer advancing plans for a transformative $3 billion expansion project.
The company achieved sales of "more than 84,000 metric tons of lithium carbonate equivalent" from operations in Chile and Australia during the quarter (earnings call, 2026-08-19), CEO Ricardo Ramos disclosed. The performance reflected both higher volumes and improved pricing as lithium markets recovered from prior weakness.
"As anticipated in our previous earnings report, lithium prices increased during the second quarter, supported by a stronger-than-expected market demand," Ramos said on the call. The company now expects global lithium demand "to exceed 2.1 million metric tons in 2026" (earnings call, 2026-08-19), representing a 200,000-ton upward revision from previous estimates.
Salar Futuro Project Advances
SQM reached a critical milestone in July when Novandino, its joint venture with state-owned Codelco, submitted environmental and technical documentation for the Salar Futuro project. The initiative represents "approximately $3 billion of investment over 7 years" and is "designed to increase production while significantly reducing the environmental footprint" of operations in the Salar de Atacama (earnings call, 2026-08-19).
For 2026, the company expects Novandino to produce between 280,000 and 290,000 metric tons of lithium carbonate equivalent, with production capacity reaching "approximately 300,000 metric tons" by 2027 (earnings call, 2026-08-19), according to Carlos Diaz, CEO of Novandino.
Australian Expansion and Cost Improvements
In Australia, SQM and partner Wesfarmers announced an expansion of the Mount Holland operation that will double spodumene concentrate production capacity to "approximately 350,000 metric tons per year" with first production expected in 2030 (earnings call, 2026-08-19).
Diaz noted that operational improvements and economies of scale drove cost reductions in the second quarter, with similar cost performance expected in Q3. "We have been working hard in the last year and continuous efficiency and improvement process," he said (earnings call, 2026-08-19).
Diversified Portfolio Performance
Beyond lithium, SQM's iodine business delivered robust results with production expected to reach approximately 15,500 metric tons in 2026 from four operations. The company's specialty plant nutrition segment posted strong volume and pricing gains, with full-year sales volumes projected to increase approximately 10% versus 2025.
SQM updated its capital expenditure outlook to approximately $3 billion over the 2026-2028 period, focused on supporting growth and enhancing competitiveness through lower production costs.
The company disclosed that during the first half of 2026, SQM and its subsidiaries accrued "more than $1.6 billion in payments to the Chilean government including taxes, contribution to local governments and payments to Corfo" (earnings call, 2026-08-19).
MarginX data shows SQM maintains a market capitalization of approximately $21 billion, with shares last closing at $74.47.
This article was generated by MarginX from the earnings call on 2026-08-19. It is not investment advice.