Chile Lithium Exports Remain Flat in 1Q Despite Asian Rebound

Chile Lithium

European Slowdown Offsets March Recovery

Chile’s lithium exports stayed flat in the first quarter of 2025, totaling 67,200 metric tonnes of lithium salts. This matched the previous quarter, though it was 11.2% higher than the same period in 2024.

The stagnation stemmed from weak February volumes caused by soft demand in Europe and oversupply in China. LCE exports in February plunged 25% below the six-month average to 16,700t amid China’s ample inventories.

However, March brought a rebound as Asian buying resumed. Chile exported 23,000t in March alone, up 37% from February levels.

Global Trade Dynamics Reshape Demand Landscape

Belgium, once a key buyer, cut its imports by 67% year-on-year. This followed Umicore’s decision to halve cathode output in 2025 due to a 30% drop in battery material sales.

Meanwhile, China reclaimed its role as the dominant importer, accounting for 72% of Chilean lithium exports. South Korea also boosted its intake by 21%, importing 11,400t in the quarter — partly filling the gap left by Europe.

With US tariffs on Chinese battery packs nearing 200%, South Korea and Japan may gain favor in the US supply chain. This shift could raise their demand for Chilean lithium in coming months.

Uncertainty Clouds Outlook Despite Rising Production Targets

Chile aims to produce 305,000t of LCE in 2025, up 16% from last year, according to Cochilco. Yet, current export volumes suggest a 36,000t shortfall unless demand surges later this year.

The evolving global trade policy — especially under the Trump administration — may further disrupt Chile’s lithium trade. Producers face the challenge of aligning rising production with increasingly fragmented global demand.

The Metalnomist Commentary

The flat start to 2025 shows how vulnerable Chile’s lithium sector is to global policy shifts and EV market volatility. While Asia provides a buffer, Europe’s retreat and US tariffs create strategic uncertainty. Producers like SQM and Albemarle must now navigate not just markets — but geopolitics.