Sociedad Química y Minera de Chile (SQM), a lithium, potassium and fertilizer production company operating in northern Chile, has recorded a sharp decline in both earnings and revenue for 2023.
The company’s revenue fell by 30% to $7.47 billion in 2023, while earnings decreased 48.5% to $2 billion, from $3.9 billion a year earlier.
Meanwhile, the company's CAPEX amounted to about $1.1 billion last year. In the first quarter of 2024, SQM expects its lithium carbonate capacity to reach 210 000 metric tons. In 2024-2025, its investments may reach $2.4 billion, including $1.4 billion related to lithium capacity expansions in Chile.
“Despite a downturn in lithium market prices when compared to the previous year, our focus on operational efficiency and ability to successfully execute capacity expansion projects have facilitated notable production growth in the lithium and iodine businesses over the past year,” said the company's CEO Ricardo Ramos.
“As we enter into 2024, we anticipate another robust year of growth in the lithium market, with global demand increasing by at least 20%, supported by electric vehicle sales growth globally and increasing demand for battery materials.”
He added that the excess in lithium and battery materials capacity seen during last year is expected to continue during this year, keeping pressure on lithium market prices.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
