Why is SQM considered a low-cost lithium producer, and where are its key lithium assets located?

SQM is considered a low-cost lithium producer because of the advantageous geological and climatic conditions at its lithium assets in the Salar de Atacama, which feature high lithium concentration and high evaporation rates—enabling efficient and economical extraction. The body explicitly states: 'Sociedad Quimica y Minera de Chile (SQM) is a low-cost producer of lithium, iodine, and nitrates, with its lithium assets in the Salar de Atacama being particularly advantageous due to high concentration and evaporation rates.'

What two major demand drivers are expected to boost SQM's lithium business, according to the news?

The two major demand drivers expected to boost SQM's lithium business are increasing electric vehicle (EV) penetration and energy storage system (ESS) growth. The body directly identifies these as the catalysts for anticipated double-digit annual growth in global lithium demand, stating: 'The company is expected to benefit significantly from the anticipated double-digit annual growth in global lithium demand, driven by increasing electric vehicle penetration and energy storage system (ESS) growth.'

SQM's Low-Cost Lithium Poised To Benefit From Rising EV Sales and ESS Growth

Aug 19, 2026

SQM, a low-cost lithium producer with advantageous Salar de Atacama assets, expects significant gains from double-digit demand growth driven by electric vehicles and energy storage systems. Strong lithium prices have subsequently boosted its valuation.

Morningstar

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