The annual reports of the 'Big Three' lithium mining companies have been released—what lies behind their significantly improved profitability?

Turning to Salt Lake Potash Co., Ltd., its revenue in 2025 was approximately RMB 15.5 billion, up about 2.4% year-on-year; net profit reached approximately RMB 8.47 billion, up about 81.7% year-on-year. Notably, both companies ‘followed the tide of the market,’ rapidly rebounding in performance as the industry recovered: for example, Ganfeng Lithium posted losses in Q1 and Q2 last year but turned profitable in Q3, earning a net profit of RMB 550 million; in Q4, its net profit surged to RMB 1.5 billion. Tianqi Lithium’s Q3 net profit stood at roughly RMB 95 million, rising to RMB 283 million in Q4—exceeding the combined net profit of the first three quarters. Salt Lake Potash’s Q4 net profit even reached RMB 3.97 billion, a 120% sequential increase and accounting for 46.9% of its full-year total. This strong Q4 performance was driven by the lithium price rebound (reaching RMB 134,500/ton in December) and the recovery in potash fertilizer prices—making Q4 last year a true ‘resurrection quarter’ for materials companies. The three companies shared several core drivers of profitability improvement. The most critical factor was the V-shaped rebound in lithium prices: lithium carbonate prices fell below RMB 60,000/ton in the first half of the year but staged a robust recovery in the second half, reaching RMB 134,500/ton in December—a Q4 price rebound of over 40%, directly boosting gross margins and net profit. Moreover, all three possess self-sufficient resources and cost advantages, enhancing their earnings resilience. First, Tianqi Lithium’s Greenbushes mine supplies 100% of its needs, with an integrated cost of around RMB 60,000/ton. Ganfeng Lithium has diversified global mining assets, achieving a self-sufficiency rate exceeding 50%. Salt Lake Potash’s extraction cost from the Qarhan Salt Lake is only RMB 31,000–35,000/ton—the lowest in the industry. All three companies also benefited from capacity ramp-ups and sales growth: lithium salt/lithium concentrate production capacity expanded, new projects came online, volume growth offset part of the price decline, and financial metrics further improved—including reduced asset impairment losses, lower finance costs, and increased foreign exchange gains. Tianqi Lithium: Lower Revenue, Higher Profit Although Tianqi Lithium delivered relatively strong profits last year, its revenue actually declined—across both business segments and product categories. Specifically, revenues from lithium compounds and derivatives, as well as lithium ore, both fell—but sales volumes rose, indicating that unit prices remained depressed for much of the year. By region, the company’s overseas operations posted weak gross margins—only 3.21%. Yet how did revenue decline coincide with rising net profit? The answer lies in dividends from its equity investment in Sociedad Química y Minera de Chile S.A. (SQM), a South American lithium mining firm. SQM reported nearly RMB 4.2 billion in net profit last year; Tianqi Lithium holds a 21.9% stake and received RMB 665 million in dividends. Thus, the bulk of Tianqi Lithium’s profit last year stemmed from investments—not operational activities. That said, this does not mean the company operated at a loss: it posted a net profit of around RMB 100 million in Q1, with only Q2 recording a loss. Currently, Tianqi Lithium pursues a dual strategy: developing its own mineral resources while investing in promising emerging companies. This model contributed to its performance recovery last year. Its primary focus remains upstream—e.g., managing major lithium mining bases—which secures its resource advantage but also tightly couples its profitability to lithium prices. Tianqi Lithium’s investment in Chilean SQM has already proven successful. SQM previously generated substantial returns for Tianqi Lithium, peaking in 2022 when investment income from SQM alone reached RMB 5.641 billion.

The world’s largest lithium brine lake has been lost; a lithium mining giant valued at hundreds of billions sells off core assets worth hundreds of millions.

Zero-Carbon Intelligence [World’s Largest Lithium Brine Lake Lost; A Lithium Mining Giant Valued at Hundreds of Billions Sells Off Core Assets Worth Hundreds of Millions] After the operational dispute over the world’s largest lithium brine lake was resolved, Tianqi Lithium—the lithium mining giant valued at hundreds of billions—began opportunistically divesting its stake in SQM. At noon on February 4, Tianqi Lithium announced plans to opportunistically dispose of its equity interests in two companies: Zhongchuang Aviation (a battery manufacturer), valued at RMB 459 million, and Sociedad Química y Minera de Chile S.A. (‘SQM’), valued at RMB 1.433 billion—totaling RMB 1.892 billion. Specifically, Tianqi Lithium intends to dispose of up to 20.2172 million shares of Zhongchuang Aviation—potentially resulting in a full exit from its holdings in the company. Simultaneously, Tianqi Lithium plans to dispose of up to 3.566 million Class A shares of SQM—representing no more than 1.25% of SQM’s total share capital. The book value of these Class A shares amounts to RMB 1.433 billion. Additionally, Tianqi Lithium stated that, starting December 26, 2025, it has already disposed of 748,500 Class B shares of SQM held via its wholly owned subsidiary Tianqi Lithium Hong Kong, representing 0.29% of SQM’s total share capital. As of the announcement date, Tianqi Lithium holds 62.5566 million Class A shares of SQM through its wholly owned subsidiary Inversiones TLC SpA (Tianqi Chile), representing 21.90% of SQM’s total share capital; it no longer holds any Class B shares of SQM. However, Tianqi Lithium noted that this partial disposal of its Class A shares in SQM will not affect its board representation at SQM or materially hinder its participation in SQM’s corporate governance. “Disposing of stakes in certain investee companies will help activate our existing assets and improve asset liquidity,” Tianqi Lithium stated, adding that proceeds will be used to bolster the company’s liquidity. Regarding whether further reductions—or even complete divestment—will follow, Times Finance contacted Tianqi Lithium as an investor. A staff member responded that this remains uncertain: “All information we can disclose regarding this matter has already been published in the official announcement—please refer to the announcement for details.” In 2018, Tianqi Lithium acquired a 23.77% stake in Chilean SQM for USD 4.066 billion (approximately RMB 25.8 billion at the time), becoming SQM’s second-largest shareholder—and gaining rights to the Atacama Project, the world’s largest lithium brine lake located in Chile. SQM is the world’s second-largest lithium producer. It holds Chilean government authorization to develop, process, and sell up to 2.2 million tons of lithium carbonate equivalent from the Atacama Salt Flat through December 31, 2030. With rapid growth in the new-energy vehicle and lithium battery sectors, upstream lithium mining firms reaped substantial benefits—and Tianqi Lithium enjoyed high dividend income from this investment: over six years (2019–2024), it recognized RMB 9.025 billion in investment income from SQM.

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The Public Employees Retirement System of Ohio reduced its stake in SQM by 48.3% in Q1, selling nearly 120,000 shares while retaining a $10.4 million position amidst mixed institutional activity.

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