SQM Smashes Q1 2026 Expectations: Lithium Sales Soar as Chilean Partnership Delivers Strong Results
The first quarter of 2026 has been a remarkable period for SQM, with the company reporting strong results across its key business lines. In an earnings conference call held on May 27th, Chief Executive Officer Ricardo Ramos highlighted the significant milestones achieved by the company during this time.
One of the most notable highlights from Q1 was the performance of Novandino Lithium, SQM's partnership with Codelco through which they operate Salar de Atacama lithium resources. The partnership marked its first full quarter of operations and delivered a substantial $530 million in contributions to the Chilean state through payments to CORFO, taxes, and transfers to local governments.
As a result, SQM has increased its lithium sales volume guidance for the year, expecting total lithium sales volumes to grow by approximately 15% compared to 2025. The company also believes that average realized price in the second quarter could be higher than those reported in the first quarter, driven by global lithium demand exceeding 1.9 million metric tons of lithium carbonate equivalent this year.
In Chile, Novandino Lithium delivered a solid first-quarter sales volume, and SQM expects volumes to continue increasing quarter-over-quarter. The company is also advancing in the Salar Futuro project, with plans to begin environmental permitting processes in the coming months.
Additionally, SQM's international lithium division operations in Australia reported strong results, with Mount Holland and the concentrator operating at full capacity while advancing in the ramp-up of Kwinana Refinery, expected to be fully operational during 2027. The company is well-positioned to capitalize on supply gaps created by reduced potassium nitrate exports from China.
In its Specialty Plant Nutrition business line, SQM increased its sales guidance for the year, expecting a 10% growth compared to 2025. Iodine sales also delivered a strong quarter, with spot transaction prices increasing in Asian markets, and SQM expects this trend to continue into the second quarter.
At Nueva Victoria, the seawater pipeline is under commissioning and expected to support future production capacity growth. Overall, SQM's Q1 2026 results demonstrate its ability to operate at maximum capacity while driving growth and expansion in key business lines."
