SQM Forecasts 15% Lithium Sales Growth in 2025 Despite Price Pressures

SQM

Chilean producer eyes stable pricing and rising demand, targeting 238,000 tonnes in lithium carbonate equivalent sales.

SQM, one of the world’s leading lithium producers, expects a 15% increase in lithium sales volumes in 2025, reaching 238,000 metric tonnes of lithium carbonate equivalent (LCE). The company projects global lithium demand will grow by 17%, slightly lower than in 2024 but still driven by the electric vehicle (EV) and energy storage sectors.

In its Q4 2024 earnings call, Gerardo Illanes, SQM’s vice president of services and finance, highlighted continued demand strength. “We estimate the lithium market grew by 25% in 2024, led by EV adoption in China and growing global energy storage system (ESS) needs,” he said.

SQM Expands Spodumene Sales as Prices Stabilize

SQM also initiated its first spodumene concentrate sales through its International Lithium Division in 2024. However, global oversupply—particularly from Australia, Africa, and Argentina—led to a 41% year-over-year decline in lithium salt prices, reaching $9.20/kg LCE in Q4.

“Prices fell steadily throughout 2024,” Illanes noted, “but that trend softened in Q4, and we now expect prices to remain relatively stable in 2025.” He added that prices may increase in 2026, depending on the demand-supply balance.

Net Loss Reflects Market Correction, Long-Term Outlook Positive

Despite strong sales volume growth, SQM reported a net loss of $404 million for 2024, a sharp reversal from its $2.01 billion profit in 2023. The drop reflects weakened pricing, although SQM maintains an optimistic outlook amid robust global demand forecasts.

With lithium markets stabilizing and demand from EV and ESS segments remaining strong, SQM’s expansion and pricing strategy aim to position the company for a long-term rebound in profitability.