Sociedad Quimica y Minera (NYSE: SQM) reported a strong first quarter of 2026, achieving approximately 69,000 metric tons in lithium carbonate equivalent sales, a 25% increase year-over-year. The quarter marked the first full operational period for its Novandino Lithium partnership with Codelco, generating over $530 million for the Chilean state through various payments. SQM has raised its 2026 lithium sales guidance, anticipating a demand surpassing 1.9 million metric tons globally.
Average lithium sales prices reached around $18 per kilogram in Q1, a significant rise from $10 in Q4 2025. The company aims for a production target exceeding 270,000 metric tons from the Salar de Atacama and projects a 10% increase in second quarter sales volumes compared to Q1, which would be a record for any calendar quarter. Additionally, SQM expects to initiate the environmental permitting for its Salar Futuro project imminently.
Financially, SQM finished Q1 with higher cash holdings, paying dividends equal to 50% of last year’s net income. The firm pays a 27% corporate income tax in Chile and a variable mining royalty estimated between 11% to 12% based on lithium profitability. The specialty plant nutrition segment is also expected to grow approximately 10% comparative to 2025, driven in part by a decrease in potassium nitrate exports from China.
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