Sociedad Química y Minera de Chile (SQM) reported Wednesday a 27% on-year increase in its Q1 lithium sales volume – the highest first-quarter volume in the company’s history.

The Chilean miner said it sold 55,000 tonnes of lithium products in the period, which is 11,500 t more than in Q1 2024. Revenues from its lithium business dropped 8% y-o-y to $502.9 million. This suggests an average realised price of $9,143/t, Kallanish notes.

In its Chile lithium division, sales volumes rose 20% y-o-y, but revenues declined 11%. The unit achieved an average price for lithium and derivatives of $9,319/t. This compares to $5,740/t achieved under its international lithium division.

“Despite the fact that average prices reported during Q1 2025 were similar to those reported at the end of last year, we have seen lower prices during the past few weeks, as consequence of a continuously oversupplied market,” comments ceo Ricardo Ramos. “Therefore, we expect lower realised prices in Q2 2025.”

Following peak prices in 2022, the lithium market has experienced price declines quarter over quarter since the start of 2023 due to supply outpacing demand. Yet, SQM notes its “strong commercial activity” in the January-March quarter was driven by “solid demand” particularly from China, followed by Europe. This is mostly from the EV sector, although the company has reported new demand from the energy storage sector.

In terms of production, Ramos says “things are evolving as expected.” In Australia, production of spodumene concentrate at Mount Holland has met expectations, with the project targeting nameplate capacity by 2026. Construction and commissioning of the refinery are progressing well, with first product expected in the upcoming months.

“In Chile, we continue working to reach a total capacity of 240,000 tonnes of lithium carbonate and 100,000 t of lithium hydroxide. All of this while we continue to process lithium sulphate in China,” he adds.

SQM also has two other business areas: iodine and specialty plant nutrition. It reported an overall net profit of $137.5m compared to a net loss of $869.5m a year earlier.