Chile’s Lithium Producer SQM Posts US$660 Million Quarterly Profit
Chile · Mining
Key Facts
- —The profit SQM earned US$660.0 million in the second quarter of 2026, up 646.4% from US$88.4 million a year earlier.
- —The half-year Net income for the six months to June reached US$1,024.7 million, a 353.5% jump from US$225.9 million.
- —The volumes Lithium sales hit a record 84,100 tonnes of lithium carbonate equivalent, against 53,100 tonnes in the same quarter of 2025.
- —The revenue Quarterly sales came to US$2,468.4 million, up 136.7% year on year, with lithium supplying US$1,779.2 million of that.
- —The market Chile’s S&P IPSA share index closed at 11,187 points on 18 August 2026, a gain of 0.34% on the day.
Record sales of 84,100 tonnes and a lithium price rebound pushed first-half earnings past US$1 billion.
SQM, the Chilean company that pumps lithium brine out of the Atacama Desert, earned US$660.0 million in the three months to June. That is 646.4% more than the US$88.4 million it made in the same quarter of 2025.
A rebound in lithium prices and record sales volumes did most of the work.
What SQM Actually Reported
The company published its second-quarter results on 18 August 2026, and the numbers were unusually large. Revenue reached US$2,468.4 million, up 136.7% from US$1,042.7 million a year earlier.
Meanwhile, gross profit climbed to US$1,260.0 million from US$253.0 million. Earnings per share came in at US$2.31, against US$3.59 for the whole first half.
Why the Profit Jumped So Far
Two things moved at once. The company sold much more lithium, and it sold that lithium at better prices than a year ago.
Because both levers pulled the same way, the effect on the bottom line was amplified. Costs at a brine operation do not rise in step with the price of the product.
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A Record Quarter for Volumes
Lithium and derivative sales reached 84,100 tonnes of lithium carbonate equivalent in the quarter. That compares with 53,100 tonnes in the second quarter of 2025, an increase of about 59%.
In fact, the company described it as a record quarterly figure. Most of the output came from Chile, with a smaller share from the Mount Holland project in Western Australia.
The Lithium Price Rebound Behind the Numbers
Lithium spent 2024 and much of 2025 in a deep slump, and producers everywhere cut back. Prices then turned in 2026, and the turn was sharp.
Battery-grade lithium carbonate in China traded near US$19,850 a tonne on 19 August 2026, according to Shanghai Metals Market. That is more than double the low of mid-2025, although prices have eased since a spring peak.
What the Company Earned Per Tonne
SQM does not publish an average selling price in the release, so the simplest check is arithmetic. Lithium revenue of US$1,779.2 million spread over 84,100 tonnes works out at roughly US$21,200 a tonne.
For context, lithium revenue in the same quarter of 2025 was only US$445.2 million. The segment therefore grew almost fourfold in a single year.
Iodine Quietly Did Its Part
Lithium takes the headlines, yet SQM is also the world’s largest iodine supplier. Iodine and derivatives brought in US$302.2 million in the quarter, up 11.4% from US$271.3 million.
Moreover, the company put that gain down to higher selling prices. It is a small share of the total, but a steady one.
The Result Beat What Analysts Expected
Analysts had penciled in earnings of roughly US$2.03 to US$2.04 per share, on revenue near US$2.24 to US$2.29 billion. Both figures were beaten comfortably.
Chief executive Ricardo Ramos said prices rose during the quarter on stronger-than-expected demand. He added that the company now expects global lithium demand to pass two million tonnes in 2026.
The Codelco Partnership Redraws the Ownership Map
In late December 2025. SQM and state copper miner Codelco merged their Atacama lithium units into a joint venture called Nova Andino Litio.
Codelco holds 50% plus one share, which gives the Chilean state control. The deal became fully effective after Chile’s Supreme Court cleared a challenge in January 2026.
SQM manages the venture until 2030, and Codelco takes over management from 2031 through 2060.
How Chile’s Stock Market Responded
Chilean shares have had a strong year, helped by copper and lithium. The S&P IPSA index closed at 11,187 points on 18 August 2026, up 0.34% on the session.
That leaves the index roughly 4% below its 52-week high of 11,628 points. Meanwhile, mining and retail names have led the advance.
What Comes Next
Management is guiding for lithium sales volumes to grow about 15% across 2026 compared with 2025. That target was raised earlier in the year, and the second quarter kept it comfortably in reach.
Still, the swing works in both directions. A quarter that produced a 646.4% profit jump was measured against a very weak base.
So the same maths will look far less dramatic once prices settle.
Frequently Asked Questions
How much did SQM earn in the second quarter of 2026?
Net income was US$660.0 million, or US$2.31 per share. That was 646.4% higher than the US$88.4 million recorded in the second quarter of 2025.
Why did profits rise so steeply?
Lithium prices rebounded from a two-year slump while sales volumes hit a record 84,100 tonnes. Revenue more than doubled, and gross profit rose to US$1,260.0 million from US$253.0 million.
What are SQM’s first-half figures?
Net income for the six months to 30 June 2026 was US$1,024.7 million, up 353.5% from US$225.9 million a year earlier. Earnings per share came to US$3.59.
Who controls SQM’s Atacama lithium operation now?
The Atacama business sits inside Nova Andino Litio, a joint venture with state miner Codelco. Codelco holds 50% plus one share, while SQM manages operations until 2030.
Connected Coverage
Sources: SQM 2Q2026 earnings release; Reuters via Mining Weekly; Associated Press; Bloomberg; Shanghai Metals Market.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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