Lithium price recovery boosts Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B (SQM.US) performance! Q3 net profit increased by nearly 36% year-on-year, with lithium sales hitting a new high for the quarter.

Benefiting from the recovery in lithium carbonate prices, the lithium industry giant Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B (SQM.US) achieved profit growth in the third quarter of 2025. The financial report shows that Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B Q3 revenue was $1.173 billion, an increase of 8.9% from the same period last year's $1.077 billion. Gross profit was $346 million, an increase of 23.1% from the same period last year's $281 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $404 million, an increase of 23.5% from the same period last year's $327 million. Net profit was $178 million, an increase of 35.8% from the same period last year's $131 million. Among them, revenue from the lithium and derivatives business was $604 million, an increase of 21.4% from the same period last year's $497 million; lithium sales volumes for the quarter increased by 43% year-on-year, setting a new record for the company. It is reported that in July of this year, Chinese lithium carbonate prices benefited from the "anti-insider battle" situation and experienced a wave of increases, followed by a gradual cooling. Since mid-October, lithium carbonate prices have once again started to rise, with the main contract for Chinese lithium carbonate futures rising by over 40% from around 71,000 yuan/ton. Strong rebound in Chinese lithium carbonate prices Analysis points out that the supply-demand imbalance is the direct driving factor for this round of price increase in the lithium carbonate market since mid-October. On the one hand, supply-side contraction and low inventory provide dual support. Contemporary Amperex Technology's core mine, the Jinwupo mine, has not completed the mining rights certificate process, and while progress has been made in resuming production, the actual production time has been significantly delayed, exacerbating concerns about short-term production shortages. In addition, continuous destocking has also intensified short-term supply tensions. On the demand side, policy support and the development of the power market are driving rapid growth in the domestic energy storage market in China. The new energy vehicle market has also maintained a high level of prosperity, providing support for demand. It is worth mentioning that the chairman of Ganfeng Lithium Group predicted last weekend that lithium carbonate supply and demand will tend to balance in 2026, with demand for lithium carbonate reaching 1.9 million tons, a 30% increase; if demand growth exceeds 30% or even reaches 40%, short-term supply rigidity will lead to lithium carbonate prices breaking through the range of 150,000 to 200,000 yuan/ton. After experiencing years of oversupply, the strong demand prospects for new energy vehicles and energy storage markets have prompted this wave of lithium price recovery. Ricardo Ramos, CEO of Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B, stated, "We expect this upward trend to continue into the fourth quarter, supported not only by strong demand for lithium from electric vehicles, but also from energy storage systems." In addition, the company also predicts that global lithium demand will grow by 20% in 2025. Industry research analyst Shawn Gilmatin pointed out last week, "For Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B, looser year-on-year data, higher average realized prices, and sustained sales growth will provide strong support for the end of 2025."