SQM, the world’s second-largest lithium producer, reported a 6% drop in net profit for the first quarter of 2021, totaling nearly $750 million. Revenue for the miner was up 12% compared to the same period last year, driven by a 34% increase in average lithium sales prices. Sales volumes, however, were down 15% due to advanced purchases in the previous quarter and high levels of stock across the battery supply chain. CEO Ricardo Ramos noted that the weaker demand was offset by the higher prices and expects sales volumes to recover in the second quarter. Last month, Chile’s President Gabriel Boric proposed a state-led development model for the coveted battery metal, which would require SQM to invest an additional $2 billion.
Categories