White Petroleum in the Carbon-Neutral Era: ALB, SQM, and LTHM—Now Is the Time for a Revaluation of Lithium Mining Assets

According to information disclosed at the 2020 investor conference, the company forecasts that battery-grade lithium demand will surge from 113,000 tonnes LCE in 2020 to 787,000 tonnes LCE in 2025, representing a compound annual growth rate (CAGR) of 47%; battery capacity per vehicle is expected to grow by 28% to 55 kWh/vehicle by 2025. Through its Wave 2, Wave 3, and Wave 4 expansion programs, the company plans to scale up its lithium production capacity to 450,000–500,000 tonnes annually. These initiatives include major projects such as lithium conversion plants in China and Australia. Under the Wave 2 program, significant increases in lithium carbonate and lithium hydroxide sales are expected starting in 2022: the La Negra III/IV brine-based lithium facility in Chile is scheduled for completion mid-2021, adding 40,000 tonnes of lithium carbonate output annually; the Kemerton I/II spodumene-based lithium hydroxide plant in Australia, slated for completion by end-2021, will contribute 50,000 tonnes of lithium hydroxide capacity annually. Statistical analysis of ALB’s future capacity ramp-up indicates rapid capacity additions in both 2022 and 2023, accelerating revenue growth and earnings realization. We remain bullish on Albemarle’s resource moat and its disciplined, orderly capacity rollout. As the world’s leading lithium resource stock, Albemarle’s steady pace of capacity expansion aligns precisely with the explosive growth of the new-energy vehicle market. Leveraging its robust sales capabilities, the company’s future prospects are highly promising. Sociedad Química y Minera de Chile S.A. (SQM) SQM is a global leader in the integrated production and sale of fertilizers, lithium, iodine, and industrial chemicals. Chilean Chemical Mining Company produces specialty plant nutrients and chemicals. Its operations are divided across several business segments: Specialty Plant Nutrition (SPN), engaged in producing organic fertilizers and nutrient solutions; Lithium and Derivatives, focused on lithium ore mining and lithium salt production; Iodine and Derivatives, dedicated to extracting and manufacturing iodine derivatives; Industrial Chemicals, encompassing production of sodium nitrate, potassium nitrate, boric acid, and other chemicals; Potassium, covering potassium chloride and potassium sulfate production; and Other Products and Services, comprising ancillary support activities. This article focuses specifically on SQM’s lithium and derivatives business. SQM sources its products primarily from two key Chilean assets: the Caliche nitrate deposits in northern Chile and the Salar de Atacama brine salar. The Caliche deposits host the world’s largest reserves of iodine and nitrates, while the Salar de Atacama brine salar contains exceptionally high concentrations of lithium and potassium. SQM extracts raw materials from the Caliche nitrate deposits in northern Chile to manufacture specialty plant fertilizers and nitrate products for various industrial applications, as well as iodine and iodine derivatives. From the Salar de Atacama brine salar, it extracts potassium-, lithium-, and sulfate-rich brines to produce potassium chloride, potassium sulfate, lithium solutions, and carnallite (magnesium chloride). Lithium carbonate and lithium hydroxide are produced at its facilities near Antofagasta, Chile. SQM distributes its products globally through an extensive distribution network spanning over 100 countries, with the majority of its revenue generated outside Chile.

What mineral resources does Chile possess?

Chile boasts abundant mineral resources; historically, saltpeter (nitrate) and copper have successively played pivotal roles in the nation’s economic development. Gold was discovered in Chile in the 16th century, silver in the 17th century, and copper in the 18th century. Since then, Chile’s mining sector has held not only regional significance in Latin America but also prominent standing on the global stage. Copper mining constitutes a cornerstone of Chile’s economy. Chile holds the world’s sole natural saltpeter (nitrate) reserves, concentrated primarily in the Atacama Desert region of northern Chile. Chile’s lithium deposits are predominantly located in the northern regions of Tarapacá, Antofagasta, and Atacama, encompassing approximately 60 salt flats and saline lakes—most of which remain unexplored systematically. Chile is also the world’s top producer of rhenium, the third-largest molybdenum producer, the seventh-largest silver producer, and the fourteenth-largest gold producer. Sociedad Química y Minera de Chile S.A. (SQM) is the undisputed global leader in four key domains—lithium, potassium nitrate, iodine, and solar salt—serving over 110 countries and serving as a core global supplier of lithium salts and specialty chemicals.

RWC Asset Management Sells 269,748 Shares of Sociedad Quimica y Minera S.A.

Oct 24, 2026

RWC Asset Management significantly reduced its stake in Sociedad Quimica y Minera S.A. by selling 269,748 shares in Q3. Despite the sell-off, SQM reported strong quarterly earnings and declared a special dividend.

MarketBeat

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