SQM Hits Record Sales Volumes, Advances Lithium Production Capacity, and Boosts Iodine Market Presence
The company reported a strong performance across its main business lines in the second quarter of 2026. SQM's Chief Executive Officer, Ricardo Ramos, highlighted an important milestone for lithium operations in Chile during the conference call.
Ramos announced that Novandino Litio, the association with Codelco, submitted environmental and technical documentation for the Salar Futuro project to authorities in July. This project represents a significant step in transforming SQM's operations at the Salar de Atacama, subject to required approvals. The $3 billion investment over seven years aims to increase production while reducing the environmental footprint.
The company also reported record quarterly sales volumes of lithium carbonate equivalent from its Chilean and Australian operations. This was supported by stronger-than-expected market demand for lithium in the second quarter. Ramos stated that global lithium demand is now expected to exceed 2.1 million metric tons this year, exceeding initial expectations.
SQM's lithium production capacity will continue to expand in both countries. Novandino Litio expects to produce between 280,000 and 290,000 metric tons of lithium carbonate equivalent this year and have approximately 300,000 metric tons of production capacity by next year. The company also announced the expansion of the Mt Holland mine and concentrator with Wesfarmers, which will double spodumene concentrate production capacity to around 350,000 metric tons per year, corresponding to SQM's share.
The company's iodine business also showed good results during the quarter, supported by robust market demand and favorable pricing. Ramos stated that demand is expected to remain strong for iodine, with the seawater pipeline currently in its commissioning phase providing flexibility to optimize production and respond to market conditions.
Overall, SQM's performance reflects a focus on expanding lithium production capacity, advancing iodine business, and leveraging synergies across its main business lines. The company's confidence in long-term fundamentals of the energy transition underscores this strategic direction.
The conference call highlighted various contributors from SQM's commercial and business intelligence teams, showcasing their roles in supporting the company's growth strategy. These professionals are integral to executing the company's vision for lithium, iodine, and specialty products.
SQM continues to invest in its operations, emphasizing a long-term perspective on the market's energy transition demands. The company seeks synergies across various business lines, including lithium, iodine, and plant nutrition, to drive growth and efficiency gains.
As the energy transition evolves, SQM positions itself for continued success through strategic investments, capacity expansions, and leveraging its operational expertise in key markets.
