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| SQM |
Chilean Lithium Giant Posts $137.5 Million Net Profit Amid Recovery
SQM has posted a strong Q1 2025 profit after last year's steep losses.
The Santiago-based miner reported a net income of $137.5 million for the first quarter, reversing a loss of $869.5 million in Q1 2024. Revenue for the January–March period reached $1.04 billion, reflecting improved lithium pricing and steady demand from global EV battery manufacturers.
Global Lithium Dynamics Fuel Financial Turnaround
Recovery in spot lithium prices and higher downstream demand support SQM's rebound. Lithium carbonate and hydroxide prices have shown signs of stabilization, especially in China and Southeast Asia. SQM’s performance suggests major producers are adapting to post-correction market dynamics. The company’s operations in Chile’s Atacama Desert remain key supply sources for global cathode and battery makers.
Implications for Battery Metal Markets and Scrap Lithium Recovery
SQM’s recovery signals stronger margins for lithium producers and recyclers alike. As lithium prices find a floor, recyclers in the battery metals space may benefit from more consistent feedstock valuations. Downstream supply chain players—especially in the EU and North America—could see improved cost visibility. For scrap lithium handlers, a stabilized market may enable long-term contract pricing and improved profitability.
ScrapInsight Commentary
SQM’s Q1 rebound offers a snapshot of lithium’s gradual rebalancing. If price stability continues, expect increased capital flows into both primary extraction and lithium-ion battery recycling. This could also sharpen global competition for high-quality scrap lithium and related inputs.
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