SQM, the world’s second-largest lithium producer, is set to start talks with state miner Codelco in the coming weeks about lithium projects. This follows the Chilean government’s plans for stronger state control of the metal, a key component for electric vehicle batteries.
The company saw its lithium sales volumes slip 15% over the first three months of 2023, but average prices surged 34% ahead of their level in the same quarter a year earlier. SQM reported prices of around $38,000 per metric tonne in the first quarter of 2022, rising to $59,000 per tonne by the last quarter.
CEO Ricardo Ramos said the company is positive about volumes for the second quarter and semester, citing a ramp up of activity in China. Revenues landed at $2.26 billion for January to March, up almost 12% from a year earlier, though profits dipped 6%.
The exact dates of the talks between SQM and Codelco will soon be shared with the market.