The Chilean lithium producer SQM (Sociedad Quimica y Minera de Chile) (NYSE SQM) reported a significant increase in profit for the third quarter of 2025. This was primarily due to an improved price environment, as average lithium prices have risen again for the first time in approximately two years.
SQM’s net profit for the period ending September 30 rose to US$178.4 million, or US$0.62 per share, up from US$131.4 million in the prior year’s comparative quarter. Revenue grew by 8.9% from US$1.08 billion to US$1.17 billion.
This once again underscores SQM’s role as one of the most important suppliers in the global lithium market – during a phase in which the industry is realigning itself after the decline from record prices in 2022.
SQM: Lithium Business Grows by Double Digits
SQM’s core business of lithium and derivatives showed particularly dynamic growth in the third quarter. In this segment, revenues rose by 21.4% to US$603.7 million. The company attributes this development to stronger-than-expected demand for the battery raw material.
CEO Ricardo Ramos stated that this upward trend is expected to continue in the final quarter. Demand for lithium is driven not only by electric vehicles (EVs) but increasingly also by stationary energy storage systems (ESS). These applications are gaining importance as renewable energies expand, for example, in large-scale storage for the power grid or in industrial storage solutions.
In addition to lithium, SQM also produces fertilizers and industrial chemicals. Nevertheless, the lithium segment remains the crucial earnings driver: price changes and sales volumes in this segment directly impact the group’s revenue and profitability. The recently reported figures show that margins have been able to recover somewhat after the previous price correction.
Lithium Market: between Correction and New Wave of Demand
The global lithium market is undergoing an adjustment process after a period of extreme price fluctuations. Following record highs in 2022, a rapid expansion of production capacities in several producing countries – including South America and Australia – temporarily led to supply growing faster than demand. This resulted in falling prices and pressure on the margins of many producers, including SQM and competitors such as the US group Albemarle.
The now rising average prices indicate that the supply-demand relationship has somewhat stabilized. While prices are still significantly below their peak levels, the market also shows that even moderate demand impulses are sufficient to drive prices upwards.
Structurally, the outlook for lithium remains closely linked to the global energy transition. Electric vehicles, hybrid models, and battery storage solutions rely on high-performance lithium-ion technologies. Industry analysts expect lithium demand to continue growing in the coming years – though not with the same momentum every year. For producers like SQM, this means that short-term price fluctuations occur within the context of an overall growing market.
SQM and Codelco: Next Step for Atacama Lithium
In parallel with its third-quarter figures, SQM reported progress on its planned partnership with the state-owned Chilean copper company Codelco. The aim of the cooperation is to expand and secure the long-term lithium extraction in the Salar de Atacama – one of the world’s most important lithium salt flats.
According to the company, the agreement is nearing its final form. The Chinese competition authority has already approved the transaction, leaving only the approval by the Chilean Comptroller General’s Office pending. A source at Codelco had previously indicated that a final decision was expected by the end of the year.
SQM is one of only two companies currently extracting lithium in Chile. The cooperation with Codelco aligns with the Chilean government’s efforts to strengthen control over strategic raw materials like lithium while integrating private expertise and capital. For SQM, the partnership opens up the opportunity to place its production base in the Atacama Salar on a new long-term contractual basis and to drive capacity expansions together with the state-owned company.
Significance of SQM’s Figures for the Global Lithium Market
SQM’s current quarterly figures are of interest not only to the company itself but also to the broader market. As the world’s second-largest lithium producer, SQM provides some guidance for the industry with its results and comments. The increase in revenue and profit, particularly in the lithium segment, can be seen as an indicator of how price levels and demand have developed during the current year.
At the same time, the management’s outlook indicates that the group continues to expect robust demand from the EV and ESS sectors. In the short term, further development also depends on factors such as the pace of renewable energy expansion, regulatory frameworks for electromobility, and the willingness to invest in new projects.
For the lithium nation of Chile, in turn, the figures underscore the sector’s role as a crucial building block of the export economy. Furthermore, the cooperation between SQM and Codelco in the Salar de Atacama could influence how the country positions itself in the global competition for battery raw materials – balancing state control and international capital.
