Chile’s SQM, the world’s second-largest lithium producer, reported a 73% drop in third-quarter net profit, despite higher sales volumes.
The company’s net profit for the quarter totaled $131 million, while revenue fell by 41% year-on-year to $1.07 billion.
Lithium sales volumes increased by 18% compared to the same period last year, but average prices plummeted by 67%. Lithium accounted for 42% of the company’s gross profit this year.
SQM, which extracts lithium from the Atacama salt flat in northern Chile, expects lithium sales volumes to range between 190,000 and 195,000 metric tons in 2024.
However, it anticipates continued pricing pressure, which is expected to negatively impact average prices in the fourth quarter.
