With strong winds rising and clouds soaring—among U.S.-listed lithium resource companies, which stands out? In-depth analysis of SQM, LTHM, and LAC.

The previous article analyzed Albemarle Corporation; this issue focuses on Sociedad Química y Minera de Chile S.A. (SQM) and Lithium Americas Corp. (LAC). This article centers on the companies’ lithium and lithium-derived businesses. 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. Sociedad Química y Minera de Chile produces specialty plant nutrients and chemicals. The diagram below illustrates SQM’s business scope; for details, click to enlarge the image. First, let’s analyze lithium resources. SQM’s products primarily originate from two sources in northern Chile: the Caliche nitrate deposit and the Salar de Atacama brine deposit. The Caliche deposit hosts the world’s largest reserves of iodine and nitrates; the Salar de Atacama brine deposit is rich in lithium and potassium. SQM sells its products globally via an extensive distribution network spanning over 100 countries, with the majority of its revenue generated outside Chile. To expand resources and operations beyond Chile, in 2016 SQM entered into a 50/50 joint venture agreement with Lithium Americas to develop the Cauchari-Olaroz brine project in Jujuy Province, Argentina—targeting an annual production capacity of 50,000 tonnes of lithium carbonate equivalent (LCE). In 2017, SQM—through its subsidiary SQM Australia Pty—acquired a 50% stake in the Mount Holland lithium project in Western Australia, establishing a 50/50 joint venture with Kidman Resources Limited. The Mount Holland lithium project plans to commence mining and construct concentration and refining facilities starting in 2021, targeting annual production of 40,000 tonnes of lithium carbonate and lithium hydroxide. Beyond lithium resources, let’s examine SQM’s equity structure and mineral rights. From an ownership perspective, Tianqi Lithium—a Chinese company—holds 25.86% of SQM’s shares, making it SQM’s second-largest shareholder. SQM’s exploration rights, mining rights, and other mineral interests include: (1) Exploration and mining rights over the Caliche nitrate deposit in northern Chile; (2) Leased mining rights over the Salar de Atacama brine deposit in northern Chile, plus associated mining and exploration rights surrounding the Salar de Atacama salt flat; (3) Mineral rights in the Cauchari-Olaroz brine project in Jujuy Province, Argentina, held through the 50/50 joint venture with Lithium Americas; (4) Mineral rights in the Mount Holland lithium project in Western Australia, held through the 50/50 joint venture with Kidman Resources Limited. Notably, the Caliche nitrate deposit lies within protected areas of Tarapacá and Antofagasta regions in northern Chile, hosting abundant reserves of nitrates, iodine, and high-concentration potassium. The Salar de Atacama brine deposit lies within the Salar de Atacama desert east of the Puna de Atacama plateau, rich in potassium, sulfates, lithium, and boron.

After prolonged corrections, what does the future hold for SQM and the lithium mining sector?

Commodity prices—led by crude oil—have continued adjusting following last week’s sharp decline. This has triggered share price drops among prominent fertilizer companies including SQM, Yuntianhua, and Asia Potash International. So—is SQM still worth holding? Will SQM peak alongside the widely speculated ‘commodity top’? This article presents forward-looking views based on potassium fertilizer’s revenue contribution and growth profile. 1. Potassium fertilizer accounts for less than 10% of revenue—posing no threat to SQM’s core business. SQM’s recent sustained correction stems from weakening global commodity prices. According to its latest Q1 earnings report, SQM’s potassium fertilizer revenue stood at 114, while total revenue reached 2,019 (see chart below). Thus, potassium fertilizer contributed only 5.6% of total revenue. 2. Potassium fertilizer’s share of SQM’s revenue will continue declining. Potassium fertilizer’s growth rate stands at just 89%, dwarfed by lithium’s explosive 970% growth. At this pace, potassium fertilizer’s revenue share will fall below 5% of SQM’s total revenue by Q2 2022. Therefore, the current sell-off reflects largely indiscriminate fund flows—investors fixating solely on the potential decline of the 5%-weight potassium business, while overlooking lithium’s explosive growth, which accounts for roughly 80% of SQM’s revenue. 3. The future of lithium resources First, a brief primer: Lithium resources fall into two main categories. One is spodumene ore, processed to yield ~6% lithium concentrate, which is further refined into battery-grade lithium salts (lithium carbonate or lithium hydroxide) used in cathodes and electrolytes for lithium-ion batteries. The other is lithium-rich brine from salt flats, where lithium is extracted via solar evaporation or adsorption separation, then processed and purified directly into lithium carbonate or lithium chloride—lithium carbonate requiring further purification or caustic conversion to reach battery-grade quality. Lithium compounds serve primarily in power lithium-ion batteries, consumer electronics batteries, energy storage batteries, power tool batteries, as well as chemical, ceramic, and other industrial applications. Currently, power batteries account for over 70% of demand. In 2022, lithium demand—driven solely by new-energy vehicles (excluding energy storage)—continues surging. Canalys reports that global electric vehicle (EV) sales reached 6.5 million units in 2021, up 109% year-on-year, representing 9% of total passenger vehicle sales. China accounted for half—3.2 million units (domestic data varies slightly: 3.521 million, 3.396 million, or—most reliably—the 3.313 million reported by the China Passenger Car Association). Projections indicate global EV sales will reach approximately 10.4 million units in 2022, capturing 12.5% of the total passenger vehicle market.

Wall Street Zen cuts rating for Sociedad Quimica y Minera stock to Buy

Oct 18, 2026

Wall Street Zen downgraded Sociedad Quimica y Minera stock from Strong Buy to Buy following Q2 2026 revenue of USD 2.47 billion. Analysts cite lithium spot price sensitivity despite the 136.7% year-over-year increase.

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Wealth High Governance Capital Ltda Takes Position in Sociedad Quimica y Minera S.A.

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Pictet Asset Management Initiates New Position in Sociedad Quimica y Minera S.A.