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 by about 2.4% year-on-year; net profit reached approximately RMB 8.47 billion, surging about 81.7% year-on-year. Notably, both companies ‘followed the tide’—their financial performance rebounded swiftly amid the industry’s recovery. For instance, Ganfeng Lithium posted losses in Q1 and Q2 last year but turned profitable in Q3, generating a net profit of RMB 550 million; in Q4, its net profit surged to RMB 1.5 billion. Tianqi Lithium recorded a net profit of approximately RMB 95 million in Q3, which rose to RMB 283 million in Q4—exceeding the combined net profit for 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 profit. This dramatic Q4 turnaround 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 enterprises. The three companies share several core drivers of profitability improvement. The most critical factor is the V-shaped rebound in lithium prices: lithium carbonate prices plunged below RMB 60,000/ton in the first half of the year but rebounded strongly in the second half, reaching RMB 134,500/ton in December—a Q4 price surge exceeding 40%, directly boosting gross margins and net profits. Moreover, all three possess self-sufficient resources and cost advantages, enhancing their profit resilience. First, Tianqi Lithium’s Greenbushes mine supplies 100% of its needs at an integrated cost of around RMB 60,000/ton. Ganfeng Lithium has diversified global mining assets, achieving over 50% self-sufficiency. Salt Lake Potash’s extraction cost from the Qarhan Salt Lake stands at only RMB 31,000–35,000/ton—the lowest in the industry. All three companies also experienced capacity ramp-up and sales growth: lithium salt/lithium concentrate production capacities expanded, new projects came online, and volume growth offset part of the price decline. Financially, they further optimized operations—reducing asset impairment losses, lowering financing costs, and increasing foreign exchange gains. Tianqi Lithium: Lower Revenue, Higher Profit Although Tianqi Lithium delivered relatively strong profits last year, its actual revenue 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 increased, indicating that unit prices remained depressed for much of the year. Geographically, the company’s overseas business posted weak gross margins—only 3.21%. Yet revenue declined while net profit rose. The explanation lies in dividends from its equity investment in Sociedad Química y Minera de Chile (SQM), a Chilean lithium mining firm: SQM’s net profit approached RMB 4.2 billion last year, and Tianqi Lithium—holding a 21.9% stake—received RMB 665 million in dividends. Thus, the bulk of Tianqi Lithium’s profit last year stemmed from investments—not operational earnings. That said, this does not mean the company was unprofitable overall: it posted roughly RMB 100 million in net profit in Q1, with only Q2 recording a loss. Currently, Tianqi Lithium pursues a dual-track strategy—developing its own mineral resources while investing in promising ventures. 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 price fluctuations. 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.

China’s Lithium Hydroxide (LiOH) Industry Investment Analysis and Outlook Report: Market Size Forecast, 2026–2032

5.3.4 Development Trends of Industrial-Grade Lithium Hydroxide 5.4 Lithium Hydroxide Submarket: Micronized Battery-Grade Lithium Hydroxide 5.4.1 Overview of Micronized Battery-Grade Lithium Hydroxide 5.4.2 Market Overview of Micronized Battery-Grade Lithium Hydroxide 5.4.3 Competitive Landscape of Micronized Battery-Grade Lithium Hydroxide 5.4.4 Development Trends of Micronized Battery-Grade Lithium Hydroxide 5.5 Strategic Positioning Analysis of the Lithium Hydroxide Submarket Chapter 6: Application Demand Analysis of China’s Lithium Hydroxide Industry 6.1 Lithium Hydroxide Application Scenarios & Sector Distribution 6.1.1 Primary Application Scenarios of Lithium Hydroxide 6.1.2 Sectoral Distribution of Lithium Hydroxide Applications 6.2 Lithium Hydroxide Subapplication: High-Nickel Ternary Cathode Materials / Lithium-Ion Batteries 6.2.1 Overview of Lithium Hydroxide in High-Nickel Ternary Cathode Materials 6.2.2 Current Market Status of Lithium Hydroxide in High-Nickel Ternary Cathode Materials 6.2.3 Demand Potential of Lithium Hydroxide in High-Nickel Ternary Cathode Materials 6.5 Lithium Hydroxide Subapplication: Lithium Iron Phosphate (LFP) 6.5.1 Overview of Lithium Hydroxide in Lithium Iron Phosphate (LFP) 6.5.2 Current Market Status of Lithium Hydroxide in Lithium Iron Phosphate (LFP) 6.5.3 Demand Potential of Lithium Hydroxide in Lithium Iron Phosphate (LFP) 6.4 Lithium Hydroxide Subapplication: Lithium-Based Grease 6.4.1 Overview of Lithium Hydroxide in Lithium-Based Grease 6.4.2 Current Market Status of Lithium Hydroxide in Lithium-Based Grease 6.4.3 Demand Potential of Lithium Hydroxide in Lithium-Based Grease 6.5 Lithium Hydroxide Subapplication: Glass and Ceramic Industry 6.5.1 Overview of Lithium Hydroxide in the Glass and Ceramic Industry 6.5.2 Current Market Status of Lithium Hydroxide in the Glass and Ceramic Industry 6.5.3 Demand Potential of Lithium Hydroxide in the Glass and Ceramic Industry 6.6 Lithium Hydroxide Subapplication: Pharmaceutical Industry 6.6.1 Overview of Lithium Hydroxide in the Pharmaceutical Industry 6.6.2 Current Market Status of Lithium Hydroxide in the Pharmaceutical Industry 6.6.3 Demand Potential of Lithium Hydroxide in the Pharmaceutical Industry 6.7 Strategic Positioning Analysis of Lithium Hydroxide Subapplication Markets Chapter 7: Case Studies of Global and Chinese Lithium Hydroxide Enterprises 7.1 Comparative Overview of Global and Chinese Lithium Hydroxide Enterprises 7.2 Case Analyses of Global Lithium Hydroxide Enterprises (in no particular order; specific enterprises may be designated) 7.2.1 Albemarle Corporation (ALB) 1. Corporate Profile 2. Business Performance 3. Lithium Hydroxide Business Layout 4. Lithium Hydroxide Operations in China 7.2.2 Livent 1. Corporate Profile 2. Business Performance 3. Lithium Hydroxide Business Layout 4. Lithium Hydroxide Operations in China 7.2.3 Sociedad Química y Minera de Chile (SQM) 1. Corporate Profile 2. Business Performance 3. Lithium Hydroxide Business Layout 4. Lithium Hydroxide Operations in China 7.3 Case Analyses of Chinese Lithium Hydroxide Enterprises (in no particular order; specific enterprises may be designated) 7.3.1 Jiangxi Ganfeng Lithium Co., Ltd. 1. Corporate Profile (1) Development History (2) Basic Information (3) Business Scope and Core Operations 2. Business Performance 3. Qualifications and Capabilities 4. Lithium Hydroxide Patents and Technologies 5. Lithium Hydroxide Resource Security 6. Lithium Hydroxide Capacity Expansion Projects 7. Business Strategy, Strengths, and Weaknesses

Sociedad Quimica Y Minera De Chile SA (SQM) Stock Up 3.5% but GF Value Says Overvalued -- GF Score: 83/100

May 12, 2026

SQM shares rose 3.5% to $94.63, though GF Value flags them as significantly overvalued against a fair value of $39.20. Despite a strong GF Score of 83/100, low valuation metrics and absent insider transactions highlight investment risks.

GuruFocus

2026-03-31

SQM Proposes 50% 2025 Earnings Payout, Stock Rises 7.3%

2026-04-13

Sociedad Quimica y Minera de Chile Stock Hits 52-Week High

2026-04-15

SQM (NYSE: SQM) files updated technical report summaries on Chile properties

2026-04-15

SQM Files Salar de Atacama Technical Report Summary and Consents

2026-04-17

Sociedad Quimica y Minera Shares Fall 7.2% Amid Analyst Concerns