Sociedad Quimica y Minera Q1 EBITDA Jumps to $837M; Lithium Prices Reach $18/kg
SQM•SQM posted Q1 adjusted EBITDA of $837 million on $1.8 billion revenue as lithium volumes reached 69,000 metric tons and average lithium prices climbed to $18/kg from $10/kg. The company raised its annual lithium sales growth forecast to 15% and is advancing its $30 billion Salar Futuro project toward environmental permitting.
1. Q1 Financial Results
SQM posted adjusted EBITDA of $837 million on $1.8 billion in revenue for Q1, more than doubling year-ago profitability. The effective tax rate rose due to increased mining taxes tied to elevated lithium margins.
2. Lithium Market Performance
Lithium sales volumes climbed 25% year-over-year to roughly 69,000 metric tons, with average sales prices rising to $18/kg from $10/kg in the prior quarter. Management lifted its full-year lithium volume growth forecast to 15%.
3. Specialty Plant Nutrition and Iodine
The specialty plant nutrition business expects a 10% increase in sales volumes, driven by reduced Chinese potassium nitrate exports. The iodine segment faces potential supply disruptions over the next two to three years, creating pricing uncertainty.
4. Salar Futuro Project and Cash Allocation
SQM is progressing its $30 billion Salar Futuro development, targeting environmental permit submission by Q3 2026 and capital deployment beginning in 2030. Despite strong cash balances, obligations to Corfo, tax payments and state contributions of over $530 million may constrain free cash usage.
