Description
SQM: Initiation Of Coverage- The Big Lithium Expansion Bet Across Chile, Australia & Specialty Nutrition!
Sociedad Química y Minera de Chile S.A. (SQM) reported robust financial and operational performance for the first quarter of 2026, supported by strong contributions across its lithium, specialty plant nutrition, and iodine business lines. The company highlighted the full quarter of operations under its partnership with Codelco through Novandino Lithium, which notably contributed over $530 million to the Chilean state, underscoring SQM’s role in the local economy. Lithium sales volumes rose 25% year-over-year to approximately 69,000 metric tons of lithium carbonate equivalent, prompting SQM to raise its full-year lithium sales volume guidance to a 15% increase over 2025 levels. Management indicated a tight supply-demand balance globally, with expected lithium demand exceeding 1.9 million metric tons this year. Despite ongoing price volatility, SQM anticipates higher average realized lithium prices in the second quarter relative to the first. The company’s Chilean operations, including Novandino Lithium, and international assets such as the Mount Holland mine in Australia, are reportedly operating near or at full capacity. However, specific cost details for some assets were not disclosed. The ramp-up of the Kwinana refinery is slated for completion in 2027, representing progress in downstream lithium processing.
