SQM Sees Lithium Glut Pushing Down Prices Through Year End
- Company reports bigger-than-expected drop in quarterly profit
- SQM will keep running at full capacity ahead of buying pickup
This article is for subscribers only.
The world’s second-largest lithium producer is warning investors of further price declines as a glut of the metal continues to work its way through the battery supply chain.
Reporting a bigger-than-expected drop in third-quarter earnings, Chilean miner SQM blamed this year’s price pullback on an excess of inventory, particularly in Asia, as well as new supply coming on stream. Those pressures “could continue to have a negative impact on lithium prices in the short term,” said Chief Executive Officer Ricardo Ramos.