A major Chilean lithium mining company announced Friday that its fourth-quarter earnings soared by more than half compared to the previous year, driven by better market conditions and increased demand.
SQM, which ranks as the globe’s second-biggest lithium producer, reported net income of $183.8 million for the final three months of the year, marking a 53% increase from the same period in the prior year.
The mining company’s quarterly revenue climbed 23.3% to reach $1.32 billion, up from $1.07 billion during the fourth quarter of the previous year. Gross profit also saw significant growth, rising 52.7% to $448.5 million.
Company CEO Ricardo Ramos highlighted the strong performance across the firm’s lithium operations. “Our fourth quarter 2025 results reflected record-high sales volumes across both of our lithium businesses, Nova Andino Litio (formerly SQM Salar) and our International Lithium Division,” Ramos stated. “In November 2025, we began to see early signs of an improved supply-demand balance, driven by stronger-than-expected demand from energy storage systems (ESS).”
Ramos noted that the company is expanding its lithium carbonate refining operations in China through processing agreements, converting lithium sulfate into the more valuable carbonate form.
Looking at the full-year results, SQM achieved net income of $588.1 million, a dramatic turnaround from the $404.4 million loss recorded in 2024. Annual revenue increased 1.0% to $4.58 billion.
SQM operates as one of just two lithium producers in Chile and also manufactures fertilizers and industrial chemicals.
The lithium market has experienced volatility, with prices declining from peak levels reached in 2022 when supply increases exceeded demand growth, creating pressure on profit margins for SQM and competitors like American company Albemarle.
However, industry analysts anticipate growing demand for the battery metal in upcoming years, supported by expanding electric vehicle adoption and increased battery storage applications.
