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Investing.com-- Chilean lithium miner SQM (NYSE:SQM) clocked a slightly stronger-than-expected third-quarter profit on Tuesday, as the firm sold record levels of lithium as demand for the metal improved.
SQM, or Sociedad Química y Minera de Chile, posted adjusted core earnings for the September quarter of $404.2 million, slightly above Bloomberg estimates of $402.3 million.
The company’s revenue also rose to $1.17 billion from $1.08 billion, aided by strong lithium sales during the quarter.
The company sold 72,900 metric tons of lithium in the third quarter– up 43% year-on-year and at a record high– and clocked total revenue of $603.7 million from the sales.
The company flagged stronger than expected demand for the metal, not only from the electric vehicle industry, but also from increased spending on battery energy storage systems. This in turn saw SQM sell lithium at a higher price in the third quarter from last year.
“We expect this upward trend to continue through the fourth quarter supported by strong demand for lithium, not only from electric vehicles (EV) but also from energy storage systems,” SQM CEO Ricardo Ramos said in a statement.
SQM is among the world’s largest lithium producers, with its main facilities operating chiefly in Chile’s Tarapaca and Antofagasta regions. The company has benefited from increased global lithium demand this year, amid steady EV sales. Increased demand for energy storage technology, specifically from the artificial intelligence industry, also buoyed lithium demand.
The company had last week gained approval from China’s antitrust authority to proceed with a partnership with Chilean government-run lithium miner Codelco to jointly develop the Atacama salt flat.
China’s regulatory approval was required given the companies supply large amounts of lithium to the country, while China’s Tianqi is also a key investor in SQM.