SQM projects 25% increase in global lithium demand for 2026
Company's Q4 sales volume jumped 50% year-over-year to over 66,000 metric tons
New joint venture with Codelco targeting 30% production increase
Atacama complex developing direct extraction techniques for more efficient production
📖 Full Retelling
Sociedad Quimica y Minera de Chile SA ADR (SQM), a leading global lithium producer, issued a bullish outlook for the battery metal market in Chile on February 28, 2026, projecting worldwide lithium demand will climb by 25% this year as the electric vehicle market recovers and large-scale energy storage systems expand. The company's optimistic forecast comes alongside robust earnings results showing it moved more than 66,000 metric tons of lithium in the fourth quarter, representing a massive 50% increase compared to the same period in the previous year. This surge in sales volume indicates that the lithium industry is successfully navigating the oversupply issues that plagued the market throughout 2024 and 2025. While spot prices have doubled from their June lows, they remain 70% below 2022 peaks, keeping the market in a state of 'disciplined recovery.' This earnings release marks the first since SQM integrated Chilean state copper giant Codelco into its Atacama operations. Their new joint venture, Nova Andino Litio SpA, is targeting a 30% increase in production over the coming years by leveraging the world's richest brine deposits, which provides a significant cost advantage over traditional hard-rock mining operations. The Atacama complex is preparing to submit regulatory proposals for 'direct extraction' techniques that could further boost output while maintaining a lower environmental footprint than global competitors.
🏷️ Themes
Energy Transition, Market Recovery, Technological Innovation
Energy storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production. A device that stores energy is generally called an accumulator or battery. Energy comes in multiple forms including radiation, chemical, gravitationa...
An electric vehicle (EV) is a motorized vehicle whose propulsion is provided fully or mostly by electric power, via grid electricity or from onboard rechargeable batteries. EVs encompass a wide range of transportation modes, including road (electric cars, buses, trucks and personal transporters) and...
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Deep Analysis
Why It Matters
The projected 25% jump in global lithium demand signals a recovery for the battery metal sector, driven by the growth of electric vehicles and energy storage. This has significant implications for companies like SQM and Codelco, as well as the broader energy transition industry.
Context & Background
Lithium prices experienced significant volatility in 2024 and 2025 due to oversupply.
The expansion of the electric vehicle market is a key driver of lithium demand.
Direct extraction techniques are being explored to increase lithium production efficiency.
What Happens Next
SQM and Codelco's joint venture, Nova Andino Litio SpA, is expected to significantly increase lithium production in the coming years. Regulatory approval for direct extraction techniques could further boost output and potentially impact competitors.
Frequently Asked Questions
What is causing the increase in lithium demand?
The primary drivers are the expanding electric vehicle market and the growth of large-scale energy storage systems.
What is Nova Andino Litio SpA?
It's a joint venture between SQM and Codelco, aiming for a 30% increase in lithium production through leveraging cost-advantaged brine deposits.
How will direct extraction techniques impact the market?
If approved, these techniques could boost output while potentially squeezing higher-cost producers by tightening the 'cost curve'.
Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry OpenAI hits $730B valuation as Amazon, NVIDIA, and SoftBank inject $110B Wall Street posts worst month since March amid geopolitics, trade, and AI fears Where Bernstein sees gold prices ending the decade after latest update Morgan Stanley lifts KOSPI target. Here are the new 2026 forecasts (South Africa Philippines Nigeria) Lithium bottom is in: global demand set to jump 25% as EV market recovers By Simon Mugo Author Simon Mugo Stock Markets Published 02/28/2026, 01:35 AM Updated 02/28/2026, 01:38 AM Lithium bottom is in: global demand set to jump 25% as EV market recovers 0 SQM -2.14% Record sales volume signals recovery for battery metal sector Sociedad Quimica y Minera de Chile SA ADR B (NYSE:SQM) , a leading global lithium producer, has issued a bullish outlook for the battery metal market. The company projects that worldwide demand will climb by 25% this year, a significant signal for the energy transition sector. The forecast comes alongside a robust earnings report showing that the company moved more than 66,000 metric tons in the fourth quarter. This represents a massive 50% jump compared to the same period the previous year. The surge in sales volume indicates that the industry is successfully navigating the oversupply issues that plagued the market throughout 2024 and 2025. SQM identifies the primary engines for this growth as the expansion of the electric vehicle market and large-scale energy storage systems . Get premium news and insight, AI stock picks, and deep research tools by upgrading to InvestingPro Codelco partnership poised to pressure high-cost rivals This earnings release is the first since SQM integrated Chilean state copper giant Codelco into its Atacama operations. Their new joint venture, Nova Andino Litio SpA, is targeting a 30% increase in production over the coming years. By leveraging the world’s richest brine deposits, the venture enjoys a significant cost advantage over tradit...
