Chilean lithium producer SQM posted a 21pc increase in lithium sales volumes in the second quarter despite low prices hitting profits across the industry.
The world's second-largest producer reported sales of 52,300t in the recent quarter, up from 43,100t on the year earlier. Sales from January-June rose by 27pc to 95,700t.
The firm also signed an agreement with state-owned miner Codelco in May to extend operations in the lithium-rich Salar de Atacama until 2060. The partnership will take effect next year.
Argus-assessed prices for lithium carbonate 99.5pc cif China averaged $12.96/kg across April-June, down 57pc on the year (see graph). And revenues fell by 55pc to $665,000 in the same period despite record sales volumes for the quarter.
"We see this pricing trend continuing in the second half of this year, with current lithium price indices in China nearly 20pc lower than the average lithium price indices in the second quarter of 2024," said chief executive Ricardo Ramos.
"Given current price levels, we anticipate some lithium producers may reduce their output, as many projects, especially greenfield, are not economically viable at these prices.
In our situation, while we continue to advance our previously announced expansions, we are currently re-evaluating specific markets and initiatives that may be less attractive in the near-term under these conditions."
The firm expects capacity additions in Western Australia and the Salar de Atacama, and has kept guidance for the year of 210,000t in line with projections set in May, with sales volumes in the second half of the year similar to those in January-June.
