Chile-based leading lithium producer SQM expects a 40pc uptick in global lithium demand in 2021. The company forecasts demand to exceed 1mn mt by 2025. Electric Vehicle (EV) sales in the first half of 2021 increased 150pc from H1 2020, the company stated.
SQM’s sales volumes are expected to hit 95,000mt in 2021 as the company works to meet increasing customer orders.
In Q2 (April-June), SQM’s earnings increased to $89.8mn, up from $50.8mn in Q2 2020. For H1 2021, earnings rose by 65pc to $157.8mn.
The company expects H2 earnings to be better than H1, but has cautioned, possible logistics and container issues could impact second-half sales volumes.
Amid strong demand, lithium prices have increased by 20pc in Q2 from Q1. Due to tight supplies, the company expects H2 prices to be significantly higher than H1. SQM expects lithium price to hit $10,000/mt in Q4 2021.