SQM Delivers Strong Q4 as Lithium Prices Inflect and Volume Hits Record Highs (SQM Q4 2025 Earnings Call)
Sociedad Química y Minera de Chile (SQM) finished 2025 on a highly positive note, driven by record lithium sales volumes, a distinct inflection in lithium pricing, and outstanding profitability in its iodine business. For the full year, the Chilean mining giant reported net income of $588 million. The fourth quarter marked a significant operational and strategic milestone as the company officially finalized its long-term association agreement with state-owned Codelco, creating the new joint venture, Nova Andino Litio. Under this new structure, fourth-quarter lithium sales volumes surged past 66,000 metric tons, a massive 50% increase year-over-year. Beyond impressive volume growth, management confirmed a long-awaited shift in lithium market dynamics; stronger-than-expected demand from the energy storage sector, combined with supply disruptions among Chinese lepidolite producers, drove SQM's average realized lithium price up nearly 14% sequentially to approximately $10 per kilogram. With over 80% of its 2026 volumes already contracted, SQM expects pricing to be substantially higher in the first quarter of 2026 compared to late 2025.