Global demand and EV growth drive optimism, even as prices drop and SQM posts 2024 net loss.
SQM, the Chilean lithium giant, expects to increase its lithium carbonate equivalent (LCE) sales by 15% in 2025, targeting 238,000 metric tonnes. The company forecasts global lithium demand will grow by 17%, slightly below 2024 levels, but still strong due to electric vehicle (EV) adoption and energy storage system (ESS) expansion.
During the Q4 2024 earnings call, Gerardo Illanes, SQM’s VP of services and finance, stated that the lithium market grew by 25% last year, primarily due to EV growth in China and other major markets.
Spodumene Sales Begin as Lithium Prices Settle
In 2024, SQM launched spodumene concentrate sales through its International Lithium Division. However, a global supply surge—from Australia, Africa, and Argentina—pushed lithium salt prices down 41% year-on-year, landing at $9.20/kg LCE by Q4.
Illanes noted that while prices declined each quarter, the drop slowed in Q4, and the company expects stable prices through 2025. Looking ahead, price recovery in 2026 is possible if supply and demand rebalance.
SQM Reports 2024 Loss but Maintains Positive Long-Term Outlook
Despite rising volumes, SQM posted a $404 million net loss in 2024, a steep reversal from $2.01 billion profit in 2023. This result reflects weaker pricing, despite operational growth.
Still, with demand for battery-grade lithium remaining strong, SQM sees long-term value. Its expansion strategy is aimed at positioning the company for recovery as markets stabilize.
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