SQM Reports Q2 Earnings Beat on Record Lithium Sales Volumes

Sociedad Química y Minera de Chile reported stronger-than-expected second-quarter 2026 earnings on August 19, 2026, delivering $2.31 per share on $2.47 billion in revenue. The results were driven by record quarterly lithium sales volumes surpassing 84,000 metric tons of lithium carbonate equivalent, alongside favorable iodine pricing and higher specialty plant nutrition sales.

The Chilean miner posted a clear outperformance against Wall Street estimates, which had forecast earnings of $1.91 per share and $2.19 billion in sales. Driven by the earnings beat and a constructive operating tone, shares rose 2.98% to $76.69 in premarket trading after closing at $74.47, placing the stock near the upper half of its 52-week range of $40.58 to $98 according to financial reporting on the quarter.

Lithium Sales Volumes Drive Record Quarter

Lithium remained the primary catalyst for the company, underpinned by demand that proved stronger than expected. Chief Executive Officer Ricardo Ramos noted that the company sold more than 84,000 metric tons of lithium carbonate equivalent during the quarter. These sales originated from Chilean operations through Novandino Litio and Australian operations through Covalent Lithium.

Management updated its broader market outlook, stating that global lithium demand is now expected to exceed 2.1 million metric tons in 2026. Company executives attributed additional expected supply primarily to increased production in China from spodumene and brine, ramp-ups in Africa and Argentina, and Australian production restarts prompted by the current pricing environment as detailed during the earnings conference call.

Capital Expansion and the Salar Futuro Project

Looking toward long-term operations, Novandino Litio submitted environmental and technical documentation in July for the Salar Futuro project, representing the next stage of operations at the Salar de Atacama. Ramos stated that the project contemplates about $3 billion of investment over seven years in an overview of the company’s expansion plans.

Ramos emphasized that the initiative should be evaluated beyond incremental capacity gains. You have to analyze the Salar Futuro project as a whole in terms of having a new beginning of the Salar de Atacama for the next 60 years’ operation, he told analysts during the question-and-answer session. Novandino Litio expects to produce between 280,000 and 290,000 metric tons of LCE in 2026, targeting roughly 300,000 metric tons of capacity next year.

International Projects and Divisional Performance

Operations outside Chile also saw structural adjustments. In Australia, the company and its Covalent Lithium partner Wesfarmers approved an expansion of the Mt Holland mine and concentrator. Mark Fones, CEO of the International Lithium Division, stated that the project will double spodumene concentrate capacity to approximately 350,000 metric tons annually attributable to the company’s share, with first production anticipated in the first half of 2030 according to project timelines outlined by divisional leadership.

SQM Reports Q2 Earnings Beat on Record Lithium Sales Volumes — Photo: Investing

Meanwhile, the iodine and specialty plant nutrition divisions reinforced the quarter’s financial results. Pablo Altimiras, CEO of the Iodine and Plant Nutrition Division, reported that iodine demand is expected to grow by about 3% this year, with new capacity from a Chilean project associated with Caliche Oro broadly offsetting that demand growth. To optimize production flexibility, the company is actively commissioning a new seawater pipeline.