AT A GLANCE: Chile’s SQM lithium revenue up 107% y-o-y in Q1 2021
Published: Friday, 21 May 2021
A summary of results for the lithium division of Chilean producer Sociedad Quimica y Minera (SQM) for the first quarter of 2021, taken from its quarterly update published on Wednesday May 19 and its earnings conference call on May 20.
- Revenues from sales of lithium and derivatives totaled
$135.2 million in the first quarter (ended March 31 2021), up
by 107% from $65.3 million year on year.
- The company’s sales volumes in the lithium
business increased by approximately 180% year on year in the
- Gross profit for the lithium and derivatives segment
accounted for approximately 26% of the company’s
consolidated gross profit for the first quarter.
Key first-quarter figures –
(year-on-year percentage change)
Lithium and derivatives
Sales volume: 23,900 tonnes, up by 179% year on
Revenue: $135.2 million, up by 107% year on year
- The company expects production to be about 90,000-95,000
tonnes in 2021, increasing to approximately 140,000 tonnes in
- The company remains on target to reach a production
capacity of 120,000 tonnes of lithium carbonate and 21,500
tonnes of lithium hydroxide in Chile by the end of 2021.
- SQM’s target is to reach 180,000 tonnes of
lithium carbonate and 30,000 tonnes of lithium hydroxide in
Chile by 2022-end.
Key quotes - Ricardo Ramos, SQM’s chief
"In the lithium business, we have only [had] positive news
over the past few months. We [had] strong demand growth for
electric vehicles during the first quarter of the year, more
than doubling when compared to last year, making us believe
that annual demand for lithium chemicals could grow more than
30%, [which is] more than previously expected."