Lithium producer SQM sees global demand growing 25% this year
Top lithium producer SQM said it sees world demand for the battery metal growing about 25% this year, after reporting record quarterly sales volume as the industry emerges from a global glut.
The operator of the world’s richest brine deposit said volumes in the fourth quarter rose to over 66 000 metric tons, more than 50% from the same period the previous year, according to an earnings report. Demand for lithium will be led by electric vehicles and energy storage systems, the company said.
It’s the first earnings report since SQM brought Chile’s state copper behemoth Codelco as a partner in the Atacama operations. The firms are targeting a roughly 30% production increase in the coming years at the sprawling complex.
Called Nova Andino Litio, the SQM-Codelco venture aims to capture double-digit growth in global lithium consumption as large-scale battery storage adds to demand from electric vehicles. The expansion could pressure higher-cost rivals as the industry emerges from a prolonged period of oversupply that dragged down prices.
To be sure, while spot prices have more than doubled from a June low, they’re still more than 70% below a 2022 peak.
The Atacama operation employs an evaporation technique that uses less water, chemicals and energy than hard-rock mining, as practiced in top-producer Australia. NovAndino is preparing to submit a proposal to regulators to introduce new techniques such as direct extraction, which could further lift output.
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