Sociedad Química y Minera de Chile S.A.

SQM did not state consolidated revenue, EPS, or gross margin in the transcript. On operations, the company reported record quarterly lithium sales volumes of more than 84,000 metric tons of lithium carbonate equivalent from Chile and Australia, and said first-half payments to the Chilean government and related entities exceeded $1.6 billion. Management guided Novandino lithium production to 280,000-290,000 metric tons of LCE this year and around 300,000 next year, with total iodine production expected at approximately 15,500 metric tons this year and specialty plant nutrition full-year sales volumes expected to increase by approximately 10% versus 2025. For Q3, management said Novandino sales volume should remain strong and in line with Q2, lithium prices should be more or less in line with the first half on an index basis, and lithium costs should be similar to Q2 but lower than last year. The company also said total capex is expected to be approximately $3 billion over 2026-2028, and Mount Holland expansion is expected to double spodumene concentrate capacity to approximately 350,000 metric tons per year with first production expected in 2030.

Ricardo Ramos framed the quarter as evidence of strong execution across SQM’s main businesses and emphasized long-term investment in lithium. He highlighted the filing of environmental and technical documentation for Salar Futuro, describing it as a roughly $3 billion, 7-year project that should expand production while materially reducing environmental footprint. His tone was constructive and confident, especially about the Codelco partnership, which he said has been better than expected in coordination and board-level cooperation.

The transcript does not include a detailed CFO prepared remarks section, but management gave specific financial and operating color during Q&A. Carlos Diaz said lithium costs in Q3 should be similar to Q2 and lower than last year, reflecting ongoing efficiency work and economies of scale. On lithium sulfate, he said SQM’s own plant in China currently produces close to 24,000-25,000 tons and is expected to reach around 30,000, with the balance handled through tolling contracts; on Novandino, he reiterated 2026 output of 280,000-290,000 tons and about 300,000 next year. On capital allocation, management said total capex will be about $3 billion over 2026-2028, mainly to support growth and lower production costs, and noted Salar Futuro is more than a capacity project because it also involves technology and environmental improvements.

Analysts focused on lithium pricing, Q3/Q4 volume trends, the widening spread between Chile and Australia realizations, and how much supply is coming from restarts and new projects. Management said Q3 volumes should be similar to Q2 and Q3 prices should be roughly in line with the first half, while explaining that Australia realizations depend on shipment timing and spodumene conversion economics. On market supply, management pointed to China, Africa, Argentina, and some Australian restarts as sources of additional lithium supply, and said BESS battery shipments exceed deployments partly because of project delays and some pull-forward ahead of China tax-rebate changes; they still see BESS as a strong long-term demand driver. Questions on Salar Futuro focused on the $3 billion spend and future production beyond 2030; management said the project is a broader technology and technology-plus-environmental revamp, not just a tonnage increase, and said 2031 should be in the middle of investment execution.