Why did SQM's stock rise, and what key factors did Scotiabank cite to justify its continued bullish outlook?

SQM's common shares rose more than 3% in Santiago after Scotiabank reiterated its 'Sector Outperform' rating and $105 price target, citing reinforced expectations for strong lithium demand growth and SQM's significant cost advantages at Chile's Salar de Atacama. The bank highlighted SQM's low all-in lithium production cost of approximately $4,500 per metric ton (excluding Corfo payments), its favorable incentive pricing outlook of ~$18/kg within a $15–$20/kg range, and confidence in sustained sharp demand expansion through the end of the decade — all based on direct discussions with SQM CFO Gerardo Illanes and Investor Relations Head Isabel Bendeck.

What strategic decisions or opportunities is SQM currently evaluating, and how do they reflect its growth and market positioning?

SQM is evaluating whether to pursue an expansion at the Mt. Holland project in Australia that could double total capacity to 100,000 metric tons, with half attributable to SQM, a decision expected in the coming months; it also views battery energy storage systems (BESS) as a high-potential growth driver where lithium demand is increasingly tied to cost competitiveness rather than consumer preference. Additionally, SQM acknowledges it will not maintain its current market share indefinitely, recognizing that industry growth is too rapid for any single producer to keep pace — underscoring its focus on scalable, low-cost supply and responsiveness to structural demand shifts beyond electric vehicles.

ChemBrief

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SQM rises as Scotiabank says lithium demand, low costs support outlook

Jun 9, 2026

SQM shares rose over 3% after Scotiabank reiterated a bullish outlook, citing strong lithium demand and low production costs. The bank maintained a $105 price target, noting potential capacity expansion at the Mt. Holland project.

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