Key Takeaways ALB and SQM are gaining from higher lithium prices driven by EV and energy storage demand.Albemarle is boosting capacity, cutting costs and expanding conversion projects to lift volumes.SQM delivered strong lithium volumes and strengthened its Atacama future via a Codelco partnership. Albemarle Corporation (ALB - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) are prominent players in the lithium space. Both are well-placed to benefit from higher lithium prices driven by strong demand from electric vehicles (EVs) and energy storage systems, along with supply disruptions partly due to supply reductions in China. Lithium prices have rebounded from the trough levels seen last year, supported by tightening supply and strong demand in China and globally.
Let’s dive deep and closely compare the fundamentals of these two major lithium stocks to determine the better investment option now.
The Case for ALBAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, especially for EVs, offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration.
ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Albemarle expects demand to grow roughly 15-40% this year. Demand indicators stayed positive in the first quarter of 2026, with global Energy Storage Systems production rising 117% year over year.
The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes (up 14% year over year) in its Energy Storage unit in the first quarter on the strength of its integrated conversion facilities.
The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes. ALB has started the environmental permitting process for a commercial direct lithium extraction project at Salar de Atacama. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule.
Albemarle is taking aggressive cost-saving and productivity actions. The company delivered roughly $450 million in cost and productivity improvements for full-year 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $40 million already delivered this year. ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure.
Albemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior-year period. At the end of the first quarter, ALB had liquidity of around $2.7 billion, including cash and cash equivalents of around $1.1 billion. ALB generated an operating cash flow of $346 million and free cash flow of $248 million in the quarter.
The company paid down $1.3 billion of outstanding debt in March 2026, reducing annual interest expense by roughly $60 million. This followed the successful divestments of the controlling stake in Ketjen and its 50% interest in the Eurecat joint venture, which together generated $670 million in pre-tax proceeds.
The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 1.2% at the current stock price.
The Case for SQMChile-based Sociedad Quimica produces plant nutrients, iodine, lithium and industrial chemicals. SQM is gaining from the favorable trends in the lithium market underpinned by strong EV sales. Higher demand is expected to continue to support the company’s lithium sales volumes.
SQM logged strong lithium sales volumes of 69,000 metric tons in the first quarter on strong market demand, driven by battery energy storage systems. The Nova Andino Litio business recorded roughly 19% higher volumes compared to the prior-year quarter, driven by capacity expansion actions, and the company expects continued sequential increase.
Nova Andino Litio’s average realized sales price increased roughly 95% year over year in the first quarter, and it expects prices to increase further in the second quarter. SQM is operating at full capacity at the Mt. Holland mine and concentrator in Australia and continues to ramp up the Kwinana refinery.
SQM projects global lithium demand to surpass 1.9 million metric tons of LCE this year, along with a tight supply-demand balance. It raised its sales volume guidance for 2026, increasing expected volume growth from 10% to 15%.
Earlier this year, SQM and Codelco completed their strategic partnership to jointly develop the Atacama salt flat. The partnership was completed through the merger by absorption of Codelco’s subsidiary, Minera Tarar SpA, into SQM’s subsidiary, SQM Salar SpA.
This major milestone paves the way for the production of refined lithium in the Salar de Atacama until 2060 and contributes to making Chile a leader in lithium production. Improvements in process efficiency, the adoption of new technologies and the optimization of operations are expected to lead to incremental lithium production through 2060. The first quarter marked SQM’s first full quarter of operation alongside Codelco through the Nova Andino Litio partnership.
Sociedad Quimica’s robust balance sheet supports its capital investment in growth projects and shareholder-friendly actions. It exited the first quarter with strong liquidity, with cash and cash equivalents of around $2.8 billion. Sociedad Quimica, in early December 2025, issued a hybrid bond for roughly $430 million to refinance debt and fund its investment plan. SQM offers a dividend yield of 3.7% at the current stock price.
ALB & SQM: Price Performance, Valuation & Other ComparisonsThe ALB stock has surged 113.3% over the past year, while SQM has rallied 102.9%.
Image Source: Zacks Investment Research
ALB is currently trading at a forward price-to-sales ratio of 2.52. SQM is currently trading at a forward price-to-sales ratio of 2.41, slightly below ALB.
Image Source: Zacks Investment Research
ALB’s long-term debt-to-capitalization is around 15.2%, lower than SQM’s 36.8%.
Image Source: Zacks Investment Research
How the Zacks Consensus Estimate Compares for ALB & SQMThe Zacks Consensus Estimate for ALB’s 2026 sales implies year-over-year growth of 18.2%. The same for EPS suggests a 1,743% year-over-year rise. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for SQM’s 2026 sales and EPS implies a year-over-year rise of 80.2% and 251.9%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
ALB or SQM: Which Stock Holds the Edge?ALB and SQM stand to benefit from higher lithium prices driven by EV and energy storage demand. Albemarle is benefiting from higher lithium volumes on project ramp-ups and actions to boost global lithium conversion capacity and productivity. SQM is delivering strong lithium volumes, expanding operations and is expected to benefit from the strategic partnership with Codelco.
ALB's higher earnings growth projections suggest that it may offer better investment prospects in the current market environment. Its lower leverage also suggests lower financial risks. Investors seeking exposure to the lithium space might consider Albemarle as the more favorable option at this time.
ALB currently carries a Zacks Rank #1 (Strong Buy), while SQM has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bamco Inc. NY bought a new stake in Sociedad Quimica y Minera S.A. (NYSE: SQM) during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 600,938 shares of the basic materials company's stock, valued at approximately $25,828,000. Bamco Inc.
When is a chemical company exciting? When its stock goes up 16% in a week. That's what happened to lithium and fertilizer producer Sociedad Quimica (SQM) shares last week, making it Monday's IBD 50 Growth Stock To Watch.
Shares gave back a morning gain and reversed lower in heavier-than-average volume Monday, after Friday's 6.9% jump. The chemical stock was within pennies of a buy point Monday morning before weakening. But investors should note that buying any stock in the current market environment carries additional risk.
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The IBD 50 company operates five business lines: specialty plant nutrition, iodine and derivatives, lithium and derivatives, potassium and solar salts.
The Chilean chemical company's products are used by health, food, technology and clean energies industries. Lithium is a component in hybrid and electric vehicles batteries.
"Our fourth-quarter 2025 results reflected record-high sales volumes across both of our lithium businesses," Chief Executive Ricardo Ramos said in the company's fourth-quarter earnings report. It also saw increased demand in its energy storage systems, or ESS, business.
"We continue to observe solid demand fundamentals and we estimate that the lithium market could grow by approximately 25% this year, led by electric vehicles (EVs) and ESS," Ramos added.
Its Nova Andino Litio lithium partnership is running at full capacity. Further, Sociedad is increasing its exposure to lithium carbonate refining in China.
Sociedad is also in the early stages of exploration for copper, gold, silver, and other base metal through third-party exploration partnerships, option agreements and joint ventures.
It ranks No. 1 out of 12 stocks in the Chemicals-Agriculture group. The group swiftly moved up to the 9th spot from the 48th four weeks ago, out of the 197 industry groups that Investor's Business Daily tracks.
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Lithium Stock Flirts With Buy Point Shares of fertilizer stocks soared in March after the Strait of Hormuz was closed amid it the U.S.-Iran war. A large portion of the oil-and-gas derivative components used in the fertilizer products ship through the waterway.
The chemical stock broke out of a flat base with a 47.51 buy point in late October. Shares gained 81% through Jan. 31, as it reached a level not seen since March 2023.
After retreating from a high, shares formed a consolidation pattern with an 86.13 buy point, according to MarketSurge pattern recognition.
It robust climb pushed its relative strength line to a 52-week high, as shown by the blue dot on its chart.
Shares reclaimed their 10-week moving average in last week's 16.2% rally.
Analysts See Rising Profits For Chemical Company Sociedad reported fourth-quarter profit of 64 cents per share, or 53% growth on Feb. 27. Its quarterly revenue increased to $1.32 billion. Its sales growth improved to 23% from 9% in the prior quarter, after six straight quarters of declining revenue.
Of its fourth-quarter revenue, lithium climbed 38.4%, its iodine sales grew 20.6% but its potassium plunged 41.1%.
Wall Street sees its full-year 2026 profit soaring 184% to $5.85 per share and its revenue popping 58% to around $7.2 billion.
Finally, the chemical stock has a best-possible 99 IBD Composite Rating.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
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Boston Common Asset Management LLC increased its holdings in Sociedad Quimica y Minera S.A. (NYSE:SQM – Free Report) by 199.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 192,695 shares of the basic materials company’s stock after buying an additional 128,322 shares during the quarter. Boston Common Asset Management LLC owned about 0.07% of Sociedad Quimica y Minera worth $13,257,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also bought and sold shares of the company. GAMMA Investing LLC boosted its holdings in shares of Sociedad Quimica y Minera by 138.4% in the 4th quarter. GAMMA Investing LLC now owns 441 shares of the basic materials company’s stock valued at $30,000 after acquiring an additional 256 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Sociedad Quimica y Minera by 26.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 2,905 shares of the basic materials company’s stock worth $125,000 after purchasing an additional 616 shares during the last quarter. US Bancorp DE lifted its position in Sociedad Quimica y Minera by 10.7% during the third quarter. US Bancorp DE now owns 6,719 shares of the basic materials company’s stock valued at $289,000 after purchasing an additional 652 shares during the period. R Squared Ltd boosted its holdings in Sociedad Quimica y Minera by 11.0% in the third quarter. R Squared Ltd now owns 7,015 shares of the basic materials company’s stock valued at $302,000 after purchasing an additional 695 shares during the last quarter. Finally, Quantinno Capital Management LP grew its position in Sociedad Quimica y Minera by 10.6% during the 2nd quarter. Quantinno Capital Management LP now owns 7,801 shares of the basic materials company’s stock worth $275,000 after purchasing an additional 749 shares during the period. 12.41% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In A number of brokerages have recently commented on SQM. Weiss Ratings restated a “hold (c)” rating on shares of Sociedad Quimica y Minera in a research note on Friday. Wall Street Zen upgraded Sociedad Quimica y Minera from a “hold” rating to a “buy” rating in a research report on Saturday, March 7th. Bank of America upped their price objective on Sociedad Quimica y Minera from $49.00 to $53.00 and gave the stock an “underperform” rating in a research report on Wednesday, March 25th. Citigroup cut shares of Sociedad Quimica y Minera from a “buy” rating to a “neutral” rating and raised their price objective for the stock from $51.00 to $74.00 in a research note on Friday, December 12th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Sociedad Quimica y Minera from $79.00 to $93.00 and gave the company an “overweight” rating in a report on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $71.42.
Check Out Our Latest Analysis on Sociedad Quimica y Minera
Sociedad Quimica y Minera Stock Performance NYSE SQM opened at $80.88 on Tuesday. The stock has a market capitalization of $23.10 billion, a price-to-earnings ratio of 39.46 and a beta of 0.99. The stock has a 50-day moving average of $75.94 and a 200 day moving average of $63.42. The company has a current ratio of 3.27, a quick ratio of 2.25 and a debt-to-equity ratio of 0.52. Sociedad Quimica y Minera S.A. has a twelve month low of $29.36 and a twelve month high of $86.13.
Sociedad Quimica y Minera (NYSE:SQM – Get Free Report) last issued its quarterly earnings data on Saturday, February 14th. The basic materials company reported $0.64 EPS for the quarter. The company had revenue of $1.32 billion for the quarter. Sociedad Quimica y Minera had a return on equity of 9.69% and a net margin of 12.85%. Sell-side analysts anticipate that Sociedad Quimica y Minera S.A. will post -1.31 EPS for the current fiscal year.
Sociedad Quimica y Minera Profile (Free Report)
Sociedad Química y Minera de Chile SA (NYSE: SQM) is a leading global producer of specialty chemicals and minerals headquartered in Santiago, Chile. The company focuses on the extraction and processing of key inputs for the agricultural, industrial and high‐tech sectors. Its core business activities include the mining of lithium, potassium and iodine, as well as the manufacture of value‐added products derived from these raw materials.
SQM’s product portfolio spans lithium carbonate and lithium hydroxide used in electric vehicle batteries and energy storage systems; potassium chloride and potassium nitrate fertilizers designed for precision agriculture; and iodine and its derivatives for pharmaceutical, food and electronics applications.
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Altfest L J & Co. Inc. raised its stake in Sociedad Quimica y Minera S.A. (NYSE:SQM – Free Report) by 86.6% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 24,430 shares of the basic materials company’s stock after purchasing an additional 11,341 shares during the quarter. Altfest L J & Co. Inc.’s holdings in Sociedad Quimica y Minera were worth $1,681,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also recently bought and sold shares of SQM. RWC Asset Management LLP lifted its position in Sociedad Quimica y Minera by 369.9% in the third quarter. RWC Asset Management LLP now owns 1,113,807 shares of the basic materials company’s stock valued at $47,871,000 after purchasing an additional 876,754 shares during the last quarter. Earnest Partners LLC raised its holdings in shares of Sociedad Quimica y Minera by 81.9% during the third quarter. Earnest Partners LLC now owns 1,911,668 shares of the basic materials company’s stock valued at $82,163,000 after acquiring an additional 860,984 shares in the last quarter. RWC Asset Advisors US LLC raised its holdings in shares of Sociedad Quimica y Minera by 112.4% during the third quarter. RWC Asset Advisors US LLC now owns 1,232,662 shares of the basic materials company’s stock valued at $52,980,000 after acquiring an additional 652,257 shares in the last quarter. Van ECK Associates Corp raised its holdings in shares of Sociedad Quimica y Minera by 62.4% during the third quarter. Van ECK Associates Corp now owns 1,676,392 shares of the basic materials company’s stock valued at $72,051,000 after acquiring an additional 644,129 shares in the last quarter. Finally, Barclays PLC raised its holdings in shares of Sociedad Quimica y Minera by 277.9% during the third quarter. Barclays PLC now owns 817,223 shares of the basic materials company’s stock valued at $35,124,000 after acquiring an additional 600,975 shares in the last quarter. Institutional investors own 12.41% of the company’s stock.
Analysts Set New Price Targets SQM has been the subject of a number of recent analyst reports. UBS Group set a $79.00 target price on Sociedad Quimica y Minera in a report on Wednesday, December 17th. Clarkson Capital restated a “neutral” rating and set a $90.00 target price on shares of Sociedad Quimica y Minera in a report on Thursday, January 22nd. Scotiabank upped their target price on Sociedad Quimica y Minera from $90.00 to $100.00 and gave the company a “sector outperform” rating in a report on Wednesday, March 4th. Zacks Research downgraded Sociedad Quimica y Minera from a “strong-buy” rating to a “hold” rating in a report on Monday, March 23rd. Finally, HSBC upgraded Sociedad Quimica y Minera to a “strong-buy” rating in a report on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $71.42.
View Our Latest Research Report on Sociedad Quimica y Minera
Sociedad Quimica y Minera Price Performance Shares of SQM stock opened at $82.11 on Friday. The stock has a market cap of $23.46 billion, a price-to-earnings ratio of 40.06 and a beta of 0.95. The business’s fifty day moving average is $75.79 and its 200 day moving average is $65.69. Sociedad Quimica y Minera S.A. has a twelve month low of $29.36 and a twelve month high of $86.13. The company has a quick ratio of 2.25, a current ratio of 3.27 and a debt-to-equity ratio of 0.52.
Sociedad Quimica y Minera (NYSE:SQM – Get Free Report) last issued its quarterly earnings results on Saturday, February 14th. The basic materials company reported $0.64 earnings per share for the quarter. The company had revenue of $1.32 billion for the quarter. Sociedad Quimica y Minera had a return on equity of 9.69% and a net margin of 12.85%. Research analysts expect that Sociedad Quimica y Minera S.A. will post -1.31 EPS for the current fiscal year.
Sociedad Quimica y Minera Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Friday, May 8th will be paid a $1.0295 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 5.0%. The ex-dividend date of this dividend is Friday, May 8th. Sociedad Quimica y Minera’s dividend payout ratio is currently 5.85%.
About Sociedad Quimica y Minera (Free Report)
Sociedad Química y Minera de Chile SA (NYSE: SQM) is a leading global producer of specialty chemicals and minerals headquartered in Santiago, Chile. The company focuses on the extraction and processing of key inputs for the agricultural, industrial and high‐tech sectors. Its core business activities include the mining of lithium, potassium and iodine, as well as the manufacture of value‐added products derived from these raw materials.
SQM’s product portfolio spans lithium carbonate and lithium hydroxide used in electric vehicle batteries and energy storage systems; potassium chloride and potassium nitrate fertilizers designed for precision agriculture; and iodine and its derivatives for pharmaceutical, food and electronics applications.
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On April 16, 2026, Sociedad Quimica Y Minera De Chile SA SQM shares rose 8.8% to a current price of $95.31. The stock has experienced significant price movements over the past year, reaching a 52-week high of $95.46 and a low of $29.36.
GF Value™ verdict: The stock is currently priced at $95.31, indicating it is 159.6% overvalued compared to the GF Value™ of $36.72.GF Score™: SQM has a GF Score™ of 83/100, which reflects a strong company performance in various metrics.Most notable signal: There have been no insider transactions in the last 3 months, indicating a lack of insider activity. Is SQM Overvalued or Undervalued? The current price of Sociedad Quimica Y Minera De Chile SA SQM significantly exceeds the GF Value™, which is estimated at $36.72. This indicates that the stock is 159.6% overvalued, suggesting that there may be a risk for investors considering entering or holding the stock. The GF Valuation label categorizes SQM as "Significantly Overvalued," which aligns with the high price relative to the intrinsic value estimated by GuruFocus.
The margin of safety is non-existent in this case, which raises concerns about potential price corrections in the future. While the company's strong profitability and growth metrics are commendable, they do not justify the current stock price when compared to its calculated intrinsic value.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does SQM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 46.3x 16.7x Forward P/E 19.1x N/A The current P/E ratio of 46.3x is significantly above its 5-year median P/E of 16.7x, indicating that SQM is trading at a premium compared to its historical valuation. This analysis supports the GF Value™ verdict of overvaluation, as the current P/E is 177% higher than its median, further emphasizing the lack of justification for the elevated stock price.
What Does SQM's GF Score™ Tell Us? Metric Rating GF Score™ 83 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 6/10 Sociedad Quimica Y Minera De Chile SA SQM has a GF Score™ of 83/100, indicating robust overall performance, particularly in Growth (10/10) and Profitability (9/10). However, the Valuation rank of 1/10 highlights significant concern regarding its current stock price relative to its intrinsic value. The company exhibits strong growth potential but faces challenges in maintaining its valuation, which could pose risks to investors.
What Are Insiders Doing with SQM Stock? In the last three months, there have been no insider transactions reported for Sociedad Quimica Y Minera De Chile SA SQM . The absence of insider buying or selling suggests a neutral stance from those who are closest to the company, providing no additional signals for potential investors regarding confidence in the stock's future performance.
What This Means for Investors Based on the GF Value™ assessment, Sociedad Quimica Y Minera De Chile SA SQM is currently overvalued. Investors should be cautious due to the significant discrepancy between the stock's market price and its intrinsic value, as indicated by the GF Value™. A potential price adjustment may occur as the market recalibrates to reflect SQM's true worth.
For the complete analysis, visit the Sociedad Quimica Y Minera De Chile SA SQM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SQM's GF Score™?
SQM has a GF Score™ of 83/100, indicating that it performs strongly across several key financial metrics.
Is SQM overvalued or undervalued?
According to the GF Value™, SQM is overvalued, with a current price that is significantly higher than its estimated intrinsic value of $36.72.
What is SQM's P/E ratio?
SQM's current P/E ratio is 46.3x, which is substantially above its 5-year median P/E of 16.7x, confirming concerns about its overvaluation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways ALB and SQM are gaining from higher lithium prices driven by EV and energy storage demand.Albemarle is boosting capacity, cutting costs and expanding conversion projects to lift volumes.SQM delivered record lithium volumes and strengthened its Atacama future via a Codelco partnership. Albemarle Corporation (ALB - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) are prominent players in the lithium space. An uptick in lithium prices amid rising demand and supply tightness has contributed to an upswing in their share prices. Both are well-placed to benefit from higher lithium prices driven by strong demand from electric vehicles (EVs) and energy storage systems, along with supply disruptions partly due to supply reductions in China. Lithium prices have rebounded from the trough levels seen last year, supported by tightening supply and strong demand in China and globally.
Let’s dive deep and closely compare the fundamentals of these two major lithium stocks to determine the better investment option now amid improving lithium market conditions.
The Case for ALBAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, especially for EVs, offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration. ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Lithium demand increased more than 30% year over year. Albemarle expects demand to grow roughly 15-40% this year.
The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes in its Energy Storage unit in the fourth quarter of 2025 on strong production from its integrated conversion facilities. The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule.
Albemarle is taking aggressive cost-saving and productivity actions in the wake of tumbling lithium prices. The company delivered roughly $450 million in cost and productivity improvements for full-year 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026. ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure. Its capital expenditures of $590 million for 2025 decreased 65% year over year.
Albemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. At the end of 2025, ALB had liquidity of around $3.2 billion, including cash and cash equivalents of around $1.6 billion. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior-year period. ALB expects generated free cash flow of $692 million for full-year 2025, driven by strong cash conversion, lower capital spending and productivity measures.
The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 0.8% at the current stock price.
The Case for SQMChile-based Sociedad Quimica produces plant nutrients, iodine, lithium and industrial chemicals. SQM is gaining from the favorable trends in the lithium market underpinned by strong EV sales. Higher demand is expected to continue to support the company’s lithium sales volumes.
SQM logged record lithium sales volumes in the fourth quarter of 2025 on strong market demand, driven by EVs and battery energy storage systems. The Nova Andino Litio business logged historic high volumes of more than 66,000 metric tons in the quarter, roughly 52% higher compared to the prior-year quarter, driven by capacity expansion actions. SQM’s average realized sales price increased roughly 14% sequentially in the fourth quarter and it expects prices to increase significantly in the first quarter. SQM is operating at full capacity in the production of spodumene concentrate in Australia and achieved its first shipment of lithium hydroxide produced in the country at the Kwinana refinery.
Sociedad Quimica expects total capital expenditure of $2.7 billion for the 2025–2027 period, which includes the expansion of lithium carbonate and lithium hydroxide capacity in Chile, the expansion of the Mt. Holland project and investments to develop the Andover project, both in Australia.
Earlier this year, SQM and Codelco completed their strategic partnership to jointly develop the Atacama salt flat. The partnership was completed through the merger by absorption of Codelco’s subsidiary, Minera Tarar SpA, into SQM’s subsidiary, SQM Salar SpA, which took full effect last month after a favorable Supreme Court resolution.
This major milestone paves the way for the production of refined lithium in the Salar de Atacama until 2060 and contributes to making Chile a leader in the production of lithium. Improvements in process efficiency, the adoption of new technologies and the optimization of operations are expected to lead to incremental lithium production through 2060.
Sociedad Quimica has a robust balance sheet and generates strong cash flows, which allow it to make investments in driving production capacity. It exited 2025 with strong liquidity, including cash and cash equivalents of around $1.75 billion. It offers a dividend yield of 0.1% at the current stock price.
ALB & SQM: Price Performance, Valuation & Other ComparisonsThe ALB stock has surged 232% over the past year, while SQM has rallied 138.4%.
Image Source: Zacks Investment Research
ALB is currently trading at a forward price-to-sales ratio of 3.86. SQM is currently trading at a forward price-to-sales ratio of 3.18, below ALB.
Image Source: Zacks Investment Research
ALB’s long-term debt-to-capitalization is around 24.2%, lower than SQM’s 34.4%.
Image Source: Zacks Investment Research
How the Zacks Consensus Estimate Compares for ALB & SQMThe Zacks Consensus Estimate for ALB’s 2026 sales implies year-over-year growth of 12.9%. The same for EPS suggests a 1,148.1% year-over-year rise. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for SQM’s 2026 sales and EPS implies a year-over-year rise of 60.9% and 227.2%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
ALB or SQM: Which Stock Holds the Edge?ALB and SQM stand to benefit from higher lithium prices driven by EV and energy storage demand. Albemarle is benefiting from higher lithium volumes on project ramp-ups and actions to boost global lithium conversion capacity and productivity. SQM is delivering record lithium volumes, expanding operations and is expected to benefit from the strategic partnership with Codelco. ALB's higher earnings growth projections suggest that it may offer better investment prospects in the current market environment. ALB’s lower leverage also suggests lower financial risks. Investors seeking exposure to the lithium space might consider Albemarle as the more favorable option at this time.
ALB currently carries a Zacks Rank #2 (Buy), while SQM has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Albemarle is expanding lithium conversion capacity to capture rising demand.ALB is seeing higher Energy Storage volumes, driven by strong output from integrated conversion facilities.Projects in Chile and Australia are ramping up, expected to support future volume growth. Albemarle Corporation (ALB - Free Report) is strategically executing its projects aimed at boosting its global lithium conversion capacity as it benefits from a rebound in lithium prices amid strengthening demand and tighter supply conditions. The market for lithium batteries and energy storage remains strong, especially for electric vehicles, offering significant opportunities for the company to develop innovative products and expand capacity.
ALB remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes.
ALB saw higher sales volumes in its Energy Storage unit in the fourth quarter of 2025 on strong production from its integrated conversion facilities. The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule. The ramp-up of the CGP3 expansion at the Greenbushes spodumene mine in Australia is also underway, which is expected to reach full production later this year and add to capacity. The company’s volumes are expected to continue to be supported by these capacity expansion actions going forward.
Among its peers, Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) has a robust balance sheet and generates strong cash flows, which allow it to make investments in driving production capacity. SQM’s solid cash position supports its capital investment in growth projects. Sociedad Quimica expects total capital expenditure of $2.7 billion for the 2025-2027 period, which includes the expansion of lithium carbonate and lithium hydroxide capacity in Chile, the expansion of the Mt. Holland project and investments to develop the Andover project, both in Australia.
Rio Tinto Group (RIO - Free Report) is making progress with its high-value lithium projects. The fully owned Rincon Lithium Project in Argentina remains on track with the commissioning of the starter plant already being completed and start-up currently in progress, with full capacity expected by the end of 2026. The Fénix expansion project and Sal de Vida in Argentina, with a capital cost of $0.7 billion each, are mechanically complete with first production expected in second-half 2026. The Nemaska Lithium project, in which Rio Tinto now holds a 53.9% stake with the Government of Québec retaining the balance, is a fully integrated spodumene-to-lithium hydroxide development project comprising the lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine with a production capacity of 32,000 tons. RIO initially acquired a 50% interest in Nemaska Lithium through the buyout of Arcadium in March 2025.
ALB’s Price Performance, Valuation & EstimatesAlbemarle has gained 221.7% in the past year compared with the Zacks Chemical - Diversified industry’s rise of 15.6%.
Image Source: Zacks Investment Research
ALB is currently trading at a forward price-to-sales ratio of 3.79, above the industry. It carries a Value Score of D.
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The Zacks Consensus Estimate for ALB’s 2026 earnings implies a year-over-year rise of 1,203.8%. The EPS estimates for 2026 have been trending higher over the past 60 days.
Copper sits at ~$12-13k per metric ton as of March, hovering near the top of its 12-month range after a January peak of $12,986.61. If you want a liquid US-listed vehicle whose fortunes rise and fall with the red metal, plus a side helping of lithium, Chilean banks, and the Santiago political cycle, the iShares MSCI Chile ETF (NYSEARCA:ECH) is one of the cleanest expressions you can buy in a brokerage account.
Chile produces roughly a quarter of the world’s copper. It also sits on the western edge of the lithium triangle, hosts a developed banking sector, and runs an open economy that shielded it from US trade war risks through the recent reshuffling of global supply chains. ECH packages all of that into a single ticker that trades like any US equity.
What ECH Is Actually Built To Do ECH tracks the MSCI Chile IMI 25/50 Index, a broad-based basket of Chilean equities. The fund launched in November 2007 and charges 0.59% annually, which is on the higher side for a country fund but reasonable for the access it provides. Geographic allocation is 100% Chile, with sector concentration in materials, financials, and consumer goods and services.
The return engine here is straightforward. Chilean materials names, anchored by lithium giant SQM (NYSE:SQM | SQM Price Prediction) and copper-adjacent miners, drive the cyclical upside when commodity prices rise. Banks like Banco de Chile add domestic credit growth and rate-cycle leverage. Utilities and consumer staples smooth the ride. When copper rallies, the Chilean peso typically strengthens alongside it, which translates into a currency tailwind on top of the equity move for dollar-based investors. A historical Market Realist analysis described the strong correlation between the peso and copper prices, and that correlation cuts both ways.
The lithium piece got materially clearer this year. A January Supreme Court decision dismissed the Tianqi Lithium appeal, allowing the SQM-Codelco joint venture to proceed with extraction rights through 2060. For an ETF whose largest weighting is SQM, that is roughly thirty-five years of regulatory clarity dropped into the prospectus.
Does The Bet Actually Pay Off The recent track record is loud. ECH returned 70% in 2025 on the back of the copper rally and the market’s enthusiasm for Jose Antonio Kast’s strong election showing, which traders read as market-friendly. Over the trailing year, ECH is up 31%, with shares around $40 after a 3% drop on the most recent trading day.
Zoom out and the picture gets more honest. The five-year return is 48%, and the ten-year is 47%. Said plainly, almost the entire decade of price appreciation came in the last 18 months. An investor who bought ECH in 2016 and held through 2024 spent eight years going essentially nowhere while the S&P 500 compounded. That is the deal with single-country commodity proxies. You wait, sometimes for years, and then the cycle pays you in a single burst.
The Tradeoffs You Are Accepting Concentration risk in commodities and a single political system. Materials and financials dominate the index. A copper bear market or a leftward political swing in Santiago can erase a year of gains quickly. Currency layered on equities. The peso amplifies copper moves in both directions. ECH dropped almost 6% in the past week alone, a reminder of how fast sentiment can shift. Cost and yield drag. The 0.59% fee plus thin dividend income makes ECH a worse vehicle for buy-and-hold investors than for tactical allocators. ECH works as a 2-5% satellite position for investors who want concentrated copper, lithium, and Chilean equity exposure in one ticker and can stomach long flat stretches between commodity cycles. Investors looking for steady returns or pure copper-miner leverage often pair ECH with, or substitute, a broader emerging-markets fund or a dedicated miners ETF like the Global X Copper Miners ETF (NYSEARCA:COPX).
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at SQM (SQM - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. SQM currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if SQM is a promising momentum pick, let's examine some Momentum Style elements to see if this chemicals company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For SQM, shares are up 4.38% over the past week while the Zacks Chemical - Specialty industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.31% compares favorably with the industry's 1.26% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of SQM have risen 24.22%, and are up 178.4% in the last year. On the other hand, the S&P 500 has only moved 6.55% and 32.75%, respectively.
Investors should also pay attention to SQM's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. SQM is currently averaging 1,369,309 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with SQM.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SQM's consensus estimate, increasing from $6.24 to $7.18 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that SQM is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep SQM on your short list.
Sociedad Química y Minera de Chile SA is poised for significant growth in its first-quarter 2026 earnings, as a rebound in lithium prices lifts profitability after three difficult years for the battery materials sector. Visible Alpha consensus estimates point to SQM's Q1 revenue rising 62% year-on-year to $1.7 billion, driven by a recovery in the company's lithium business, which remains the dominant earnings engine for the Chilean producer. Consensus estimates forecast full-year revenue rising 58% to $7.3 billion, accelerating sharply from roughly 1% growth last year.
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Two AI Titans Flash Entries As Rocket Lab Readies For Launch The world's demand for lithium-ion batteries, deployed in everything from electric vehicles to smartphones, may exceed its supply in 2026. The Chilean multinational company known as Sociedad Quimica y Minera de Chile (SQM) is one of the major lithium stocks with ties to a global scramble to secure reserves and ramp up production. Nearly 60-year-old SQM operates mines throughout Northern…
Highlights SQM reported total revenues for the three months ended March 31, 2026 of US$1,760.1 million compared to total revenues of US$1,036.6 million for the same period last year. Net income for the three months ended March 31, 2026 of US$364.7 million or US$1.28 per share, compared to US$137.5 million or US$0.48 per share for the same period last year. In lithium: Strong sales volumes amidst strong market demand. Moving-up sales volumes guidance for the year. In SPN: Stronger than expected quarter in both volumes and prices. Moving-up sales volumes for the year. SQM will hold a conference call to discuss these results on Wednesday, May 27, 2026 at 12:00pm EDT (12:00pm Chile time).Participant Call link: https://register-conf.media-server.com/register/BIf194b8fef0d7479a82018f16e2c31fe3Webcast: https://edge.media-server.com/mmc/p/9qtcu4gc
SANTIAGO, Chile, May 26, 2026 (GLOBE NEWSWIRE) -- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today net income for the three months ended March 31, 2026, of US$364.7 million or US$1.28 per share, an increase of 165.2% compared to US$137.5 million or US$0.48 per share reported for the same period last year.
Gross profit(1) reached US$778.6 million (44.2% of revenues) for the three months ended March 31, 2026, higher than US$304.7 million (29.4% of revenues) recorded for the three months ended March 31, 2025. Revenues totaled US$1,760.1 million for the three months ended March 31, 2026, representing an increase of 69.8% compared to US$1,036.6 million reported for the three months ended March 31, 2025.
SQM’s Chief Executive Officer, Ricardo Ramos, stated, “We delivered strong results during the first quarter of the year. In lithium, sales volumes reached approximately 69 thousand metric tons of LCE across our operations, as we continued to operate at full capacity to meet strong customer demand. Based on our current estimates, global lithium demand could exceed 1.9 million metric tons of LCE this year, while market dynamics continue to suggest a tight supply-demand balance. As a result, we have upgraded our sales volume guidance for the year, increasing our expected growth from 10% to 15%.”
He added, “The first quarter of 2026 marked our first full quarter operating alongside CODELCO through our partnership Nova Andino Litio, and the results underscore the strength of this partnership. We are operating at full capacity, delivering strong financial results, while we continue to expand production capacity. In the first quarter alone, Nova Andino Litio generated more than US$530 million in contributions to the Chilean state, including payments to CORFO, local governments, and taxes.”
“We are currently finalizing the documentation required to begin the environmental permitting process for the Salar Futuro project. We expect to submit the project to the environmental authorities in the coming months and to share further details with the market in the near term. This project will be developed by Nova Andino, and we are very enthusiastic about its potential to establish a new benchmark in lithium production.”
Mr. Ramos continued, “In our SPN business lines, we are also increasing our sales volume guidance for the year. We now expect total sales volumes to grow by approximately 10% compared to last year, driven by tighter supply conditions in Asia. This reflects reduced export availability, as Chinese producers prioritize domestic consumption and scale back potassium nitrate shipments, creating opportunities for us to serve previously undersupplied markets.”
He further noted, “In Iodine, we observed strong sales volumes and higher year-over-year prices, a trend we expect to continue into the next quarter. We are maintaining our full-year sales volume guidance, with volumes expected to be in line with last year. The seawater pipeline is currently in the commissioning phase, and we expect to bring it online during the second half of the year.”
The CEO concluded, “We continue to see positive market dynamics across our key business lines, particularly in lithium, while remaining optimistic about our iodine and specialty plant nutrition segments. We believe we are well positioned to deliver solid results and improved returns to our shareholders, while continuing to advance our expansion plans in both lithium and iodine”
To see full press release please visit: https://ir.sqm.com/
Gold and Silver Rebound, But This Metal Is Outperforming BothSociedad Quimica y Minera NYSE: SQM reported a strong first quarter of 2026, with management citing higher lithium volumes, favorable pricing trends across several businesses and the first full quarter of operations for its Novandino Lithium partnership with Codelco.
Chief Executive Officer Ricardo Ramos said the quarter marked “an important milestone” for SQM and the partnership, which is focused on developing lithium resources in the Salar de Atacama. Ramos said Novandino Lithium generated more than $530 million in contributions to the Chilean state during the quarter through payments to CORFO, taxes and transfers to local governments.
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This ETF Is Up 146% as the Battle Over Rare Earths Heats Up“We are operating at full capacity, delivering strong operational and financial results, while continuing to invest in future growth and production expansion,” Ramos said.
Lithium Volumes Rise as SQM Lifts Annual Guidance SQM said total lithium sales volumes rose 25% year over year in the first quarter to approximately 69,000 metric tons of lithium carbonate equivalent across its operations. Ramos said the company now expects global lithium demand to exceed 1.9 million metric tons of lithium carbonate equivalent this year, with market conditions indicating a tight supply-demand balance.
Chinese Lithium Production Halt Means Upside for These 3 StocksBased on that outlook, SQM increased its full-year lithium sales volume guidance and now expects total lithium sales volumes to grow approximately 15% compared with 2025. Management also said average realized lithium prices in the second quarter could be higher than those reported in the first quarter.
During the question-and-answer session, Pablo Hernández, Vice President of Strategy and Development of Novandino Lithium, said SQM’s first-quarter average lithium sales price was roughly $18 per kilogram, up from about $10 per kilogram in the fourth quarter of 2025. He said realized prices remain mainly linked to pricing indexes and added that the company expects second-quarter sales prices to be higher than in the first quarter, though he cautioned that volatility makes it difficult to predict prices beyond the second quarter.
Hernández said the company expects strong lithium sales volumes in the second quarter and aims to surpass the first-quarter 2026 level by more than 10%, which would represent a record for any calendar quarter. He said SQM expects more than 270,000 metric tons of production from the Salar de Atacama this year and sees “significant appetite for lithium units in the market.”
Novandino, Salar Futuro and Australia Projects Advance In Chile, Ramos said Novandino Lithium delivered solid first-quarter sales volumes and that volumes are expected to increase quarter over quarter. He said SQM continues to advance the Salar Futuro project and expects to begin the environmental permitting process in the coming months.
Asked about capital spending and inflation, Ramos said the company expects to file the environmental study for Salar Futuro in the next few months, probably before the end of the third quarter. He said SQM’s first estimate for total investment is in the range of CLP 3 billion, while acknowledging uncertainty around costs and raw material prices. However, he said inflation should also affect the prices of SQM’s commodities and that the company does not expect the project’s returns or profitability to be affected.
Ramos said SQM expects final approval for the project during 2029 and expects to begin investment in Salar Futuro during 2030.
In Australia, Ramos said Mount Holland and its concentrator are operating at full capacity, while SQM continues to ramp up the Kwinana refinery, which is expected to be fully operational during 2027. Andres Fontannaz, Commercial Vice President of the International Lithium Division, said the company expects to present the Mount Holland expansion for board review and decision in early third-quarter 2026. He said permitting is progressing and that the public review period was scheduled to close at midnight on May 28. Fontannaz said SQM’s share of capital spending considered for 2027 is CLP 200 million.
Plant Nutrition and Iodine Outlook Improves SQM also raised its guidance for the Specialty Plant Nutrition business, now expecting sales volumes to grow approximately 10% compared with 2025. Ramos said the increase is driven by reduced potassium nitrate exports from China, which have created supply gaps in international markets.
Pablo Altimiras, CEO of the Iodine and Plant Nutrition Division, said China suspended exports of potassium nitrate at the end of March, allowing SQM to enter markets where it does not normally sell. He said the company has the installed capacity, inventories and global supply chain to respond if the market needs additional potassium nitrate.
Altimiras said SQM is optimistic about specialty fertilizer prices, citing the lack of supply from China and higher raw material and related fertilizer costs. He said prices for potassium sulfate have been rising, supporting potassium nitrate pricing, and that SQM believes prices will continue increasing in coming quarters.
In iodine, Ramos said SQM delivered a strong quarter and expects the trend to continue into the second quarter, with spot transaction prices continuing to rise, particularly in Asian markets. The company continues to expect full-year iodine sales volumes to be broadly in line with last year or slightly higher.
Altimiras said first-quarter iodine demand was strong and that SQM believes the market grew more than 3% in the quarter, supporting its view that the market can grow 3% this year. He said the market has changed compared with prior cycles, with X-ray contrast media now playing a larger role. He also said marginal supply projects tend to have higher costs than in the past.
Cash, Dividends and Taxes Chief Financial Officer Gerardo Illanes said SQM ended the first quarter with higher cash and cash equivalents than at the end of 2025, driven by higher prices for lithium, iodine and nitrates. However, he said the company subsequently paid dividends equal to 50% of last year’s net income and has obligations including CORFO payments, taxes and other payments.
Illanes said SQM has not made a decision on special or interim dividends for the current quarter. He said the company is assessing opportunities, noting that higher lithium volumes and prices will likely mean higher payments to CORFO, the Chilean government and local communities in coming quarters. He also pointed to a high capital expenditure program in Chile, iodine operations and the international lithium division.
On taxes, Illanes said SQM pays Chile’s 27% corporate income tax, along with taxes abroad that average around 30% depending on jurisdiction. He said the company also pays a Chilean mining royalty that ranges from 0% to 14%, depending on profitability. Based on current lithium profitability, he said the royalty is between 11% and 12% on lithium profit, excluding CORFO payments.
Management also said battery energy storage systems now account for about 30% of overall lithium demand, according to Max Vial, Head of Studies of the International Lithium Division.
About Sociedad Quimica y Minera NYSE: SQMSociedad Química y Minera de Chile SA NYSE: SQM is a leading global producer of specialty chemicals and minerals headquartered in Santiago, Chile. The company focuses on the extraction and processing of key inputs for the agricultural, industrial and high‐tech sectors. Its core business activities include the mining of lithium, potassium and iodine, as well as the manufacture of value‐added products derived from these raw materials.
SQM's product portfolio spans lithium carbonate and lithium hydroxide used in electric vehicle batteries and energy storage systems; potassium chloride and potassium nitrate fertilizers designed for precision agriculture; and iodine and its derivatives for pharmaceutical, food and electronics applications.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Sociedad Química y Minera de Chile posted mixed Q1 results, with revenues beating estimates, while revenues were a sizable miss. The bigger story is the dramatic Y-O-Y rise in revenues and earnings, with long-term fundamentals suggesting that positive financial momentum is likely to continue. I initiated a stock position in SQM, with an intent to buy more on further dips, as a broader strategy to build a core lithium position in my portfolio.
The headline number you may have seen is generous. Through the close on June 10, 2026, the Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT) is up about 10% year to date, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has returned about 6%. That is a real gap, though smaller than the 25 versus 11 some screenshots have been passing around. The cleaner number to anchor on is the one-year window, where BATT is up about 71% against SPY’s roughly 20%. A $10,000 stake in BATT on June 10, 2025, when shares traded at $8.91, is worth about $17,100 today. The same $10,000 in SPY is worth about $12,000.
Both calculations are price-only. BATT pays distributions, so a true total return number would be slightly higher, but the shape of the story does not change. Battery materials beat the broad market by a wide margin over the last twelve months, and that outperformance is concentrated, fragile, and almost entirely about one commodity.
What Is Actually Inside the Fund BATT is a thematic basket of lithium miners, battery makers, EV manufacturers, and the industrial metals companies feeding them. Per the most recent fact sheet, the top holdings include Contemporary Amperex Technology at 8.0%, BHP Group at 6.9%, Tesla at 6.7%, BYD at 6.5%, and Freeport-McMoRan at 5.2%. Albemarle (NYSE:ALB | ALB Price Prediction) is the ninth-largest position at 2.2%. The sector mix leans heavily on materials at 55.2%, with consumer discretionary at 23.2% and industrials at 17.1%. The fund holds about $108.3 million in net assets and charges 0.59%. It is not a household-size ETF, and that matters when sentiment turns.
SPY, by contrast, is a market-cap-weighted slice of the U.S. economy where the largest positions are the mega-cap technology names. The two funds are not really comparable except as a way to measure how much a focused commodity bet can pull away from the index when the commodity cooperates.
The Lithium Price Did the Work The mechanism behind BATT’s twelve-month run is almost embarrassingly simple. Lithium carbonate prices roughly doubled. SQM (NYSE:SQM), the Chilean lithium producer, reported Q1 2026 revenue of $1.76 billion, up 69.8% year over year, with the Lithium and Derivatives segment alone generating $1.19 billion, a 135.7% jump. Realized lithium prices at the Salar de Atacama averaged about $17.8 per kilogram, roughly 95% higher year over year. CEO Ricardo Ramos told investors that “global lithium demand could exceed 1.9 million metric tons of LCE this year, while market dynamics continue to suggest a tight supply-demand balance,” and raised SQM’s 2026 volume growth guidance from 10% to 15%.
Albemarle’s quarter was even louder. Q1 2026 EPS came in at $2.95 against a $1.31 estimate, a 125% beat. Energy Storage net sales jumped 69.9%, with lithium pricing up 51% and volumes up 14%. Adjusted EBITDA margin expanded to 46.5% from 24.8% a year earlier. CEO Kent Masters said “Higher pricing and volumes in Energy Storage and Specialties, along with continued cost and productivity actions, were the key contributors to our results.” Over the last year, SQM shares are up about 121% and Albemarle is up roughly 133%.
Two pieces of that story matter for what comes next. The first is that battery energy storage systems (BESS), the grid-scale batteries utilities are installing to firm renewables, have emerged as a marginal demand source on top of EVs. SQM said in February that it expected the lithium market to grow approximately 25% in 2026, led by EVs and ESS. The second is that supply has been constrained, with Albemarle’s Kemerton Train 1 placed into care and maintenance and a Chinese lithium mining halt last year pulling tonnage out of the market.
Recent Price Action Tells A Different Story BATT is down about 12% over the last week and 15% over the last month. Albemarle has dropped about 30% in a month. SQM is off roughly 21% over the same window. The lithium trade that defined the last year is wobbling in real time, and the YTD gain is a residue of the move that already happened, not a description of the current regime.
The reason this matters is the sensitivity in Albemarle’s own guidance. The company laid out three scenarios for 2026 tied to where lithium prices land. At the Q1 2026 average of about $20 per kilogram LCE, ALB guides net sales of $5.7 to $6.0 billion and adjusted EBITDA of $2.4 to $2.6 billion. At the FY 2025 average of about $10 per kilogram, the same business produces $4.1 to $4.3 billion in sales and only $0.9 to $1.0 billion in EBITDA. At the longer-run 2021 to 2025 average of about $30 per kilogram, EBITDA jumps to $4.2 to $4.4 billion. Earnings move several times faster than the commodity, in both directions.
What To Watch From Here BATT almost certainly cannot repeat a 71% year from this base, because the doubling of lithium that drove the move has already happened. The forward question is whether spot lithium holds near $20 per kilogram, drifts back toward $10, or grinds higher toward the historical $30 average as BESS demand absorbs supply. That single variable explains most of where BATT goes next.
The concrete things to watch are the monthly Chinese lithium carbonate spot quotes published by Fastmarkets and Benchmark Mineral Intelligence, SQM’s quarterly realized price disclosure (next report on the Q2 2026 call following an earnings release in late August), Albemarle’s quarterly Energy Storage segment pricing line, and the status of Kemerton Train 1. The BESS narrative is the one piece of the thesis with structural legs independent of EV cycles, and utility-scale storage installation data from EIA and BloombergNEF is the cleanest read on whether marginal demand is actually showing up.
The honest read is that BATT’s outperformance is real and the BESS-driven demand layer is durable, but the price level that produced the headline returns is already softening. The fund is a leveraged bet on a single commodity dressed up as a thematic basket, and the math that worked over the last twelve months requires lithium to hold a price it has not held for very long. If you are looking at BATT now, you are buying the commodity dressed up as a theme. That is fine, as long as you know that is the trade you are making.
