Chilean copper miner SQM reported a sharp increase in first-quarter profit and raised its lithium sales forecast, betting that robust demand from battery storage systems will keep the market tightly supplied.

The company posted adjusted Ebitda of $837-million for the three months ended March 31, more than double the year-ago level and higher than the average analyst estimate. Revenue climbed to $1.8-billion, also just ahead of expectations.

SQM said lithium sales volumes reached about 69 000 t of lithium carbonate equivalent during the quarter as the company operated “at full capacity” to meet demand. The company now expects lithium sales volumes to increase about 15% this year, up from a prior growth forecast of 10%.

The results are among the strongest since the peak of the lithium boom in 2022, following two years of collapsing prices that forced producers across the industry to cut costs, delay projects and idle capacity. The recovery comes as rising demand from energy storage and electric vehicles tightens global lithium markets.

SQM is ramping up production with management emphasizing a strategy focused on maximizing output and maintaining low costs rather than attempting to restrict supply to support prices. CEO Ricardo Ramos said global lithium demand could exceed 1.9-million tons in 2026, driven in part by rapid growth in battery energy storage systems.

“Market dynamics continue to suggest a tight balance between supply and demand,” Ramos said in the statement. “The positive pricing trend seen in recent months could continue in the short term.”

At the center of SQM’s long-term growth plan is Salar Futuro, a new extraction approach designed to reduce freshwater consumption and lower environmental impact at the Salar de Atacama..

On a call Wednesday, analysts are expected to press management on pricing trends. Investors will also focus on the company’s partnership with State-owned Codelco, which extends SQM’s Atacama operations through 2060.