Driven by the rebound in lithium carbonate prices, Sociedad Quimica Y Minera De Chile SA (SQM.US) reported strong profit growth in Q3 2025.

The company's Q3 revenue reached $1.173 billion, up 8.9% year-over-year (YoY) from $1.077 billion. Gross profit rose 23.1% YoY to $346 million, while adjusted EBITDA increased 23.5% to $404 million. Net profit surged 35.8% YoY to $178 million.

Lithium and derivatives sales contributed $604 million in revenue, a 21.4% YoY increase, with lithium sales volume climbing 43% to a record high.

The recovery in lithium prices gained momentum in July amid China's "anti-involution" market trend before cooling down. However, since mid-October, lithium carbonate futures in China rebounded sharply, with the main contract rising over 40% from a low of around 71,000 yuan per ton.

Analysts attribute the recent price surge to supply-demand imbalances. On the supply side, production constraints and low inventories have tightened the market. Notably, CATL's key Jianxiawo mine faced delays in resuming operations due to incomplete licensing procedures, exacerbating supply concerns. Meanwhile, inventory drawdowns further intensified short-term shortages.

On the demand side, policy support and rapid growth in China's energy storage sector, alongside sustained strength in the EV market, bolstered consumption.

Ganfeng Lithium's chairman recently projected that lithium carbonate demand will grow 30% in 2026 to 1.9 million tons, potentially pushing prices beyond 150,000–200,000 yuan per ton if demand exceeds expectations.

SQM CEO Ricardo Ramos stated, "We expect this upward trend to continue into Q4, supported by robust EV and energy storage demand." The company forecasts global lithium demand to grow 20% in 2025.

Industry analyst Sean Gilmartin noted, "Stronger YoY comparisons, higher realized prices, and sustained sales growth position SQM for a solid finish to 2025."