Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 19, 2026 · Beat 0 of last 7 quarters
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SQM's record lithium volumes and raised demand forecast reinforce the accelerating pace of the energy transition, with lithium demand now expected to exceed 2.1 million metric tons in 2026. The company's expansion plans, including Salar Futuro and Mount Holland, signal continued investment in upstream lithium supply to meet the needs of battery and energy storage buildout. The strong iodine and specialty plant nutrition results also highlight the broader specialty chemicals demand tied to industrial and agricultural infrastructure.
SQM delivered record quarterly lithium sales volumes of over 84,000 mt LCE in Q2, driven by strong demand and higher prices, and raised its full-year global lithium demand forecast to over 2.1 million mt. The company submitted environmental documentation for the Salar Futuro project in July, a ~$3 billion investment to increase production and reduce environmental footprint. Iodine results were solid with robust demand and pricing, and specialty plant nutrition volumes grew on higher prices and volumes. Management updated its capital expenditure outlook to ~$3 billion for 2026–2028, focused on growth and cost competitiveness. The company also noted contributions of over $1.6 billion to the Chilean government in the first half.
Management raised its global lithium demand forecast to over 2.1 million metric tons for 2026, citing stronger-than-expected demand, and expects Q3 lithium sales volumes to remain in line with Q2's record levels, with prices roughly flat versus the first-half average. Novandino production is guided at 280,000–290,000 mt LCE for 2026, rising to ~300,000 mt capacity in 2027, with further growth under study as brine extraction is reduced. The Salar Futuro project, with ~$3 billion investment over 7 years, is progressing with environmental documentation submitted in July; management expects to provide more detailed volume and investment guidance in the next call. Iodine volumes are expected to remain similar to last year as new supply from a Chilean project offsets ~3% demand growth. Specialty plant nutrition volumes are still expected to grow ~10% for the year, with supply constraints gradually normalizing toward year-end. The tone was confident, with management emphasizing cost improvements and long-term confidence in the energy transition.
“We achieved record quarterly sales volumes of more than 84,000 metric tons of lithium carbonate equivalent from our operations in Chile through Novandino Litio and in Australia through Covalent Lithium.”
on Lithium sales volumes
“We now expect global lithium demand to exceed 2.1 million metric tons in 2026.”
on Lithium demand forecast
“The project contemplates approximately $3 billion of investment over 7 years and is designed to increase production while significantly reducing the environmental footprint of our operations.”
on Salar Futuro project
Can you talk about Q3 for a second. If I look at Q3 for the lithium segment, you're guiding to prices about flat, volumes seems like about flat. And then cost, I had a question about because costs stepped down a lot in Q2. Should we expect Q3 lithium earnings gross margin to be about the same as Q2?
Felipe Smith confirmed Q3 sales volumes are expected to remain strong, in line with Q2, and prices should be roughly in line with the first-half average based on index-linked contracts. Carlos Diaz added that costs are expected to be similar to Q2, benefiting from ongoing efficiency improvements and economies of scale.
I believe you guys are ramping up production in Novandino faster right than initially expected when the deal was signed. So I wonder if you could update us on -- and you mentioned about 300,000 tons next year. But beyond that and when the new concession starts in place, what could be a feasible production levels, especially when Salar Futuro is in place in terms of annual production.
Carlos Diaz said production this year is expected at 280,000–290,000 mt, with ~300,000 mt next year. Beyond that, growth will be moderated as brine extraction is reduced, and the company is still studying initiatives to increase production further, with more details to be shared in future calls.
I think there's a bit of confusion among investors in terms of your recent filing of spending $3 billion at Salar Futuro, and some are drawing the conclusion that it is all going towards increasing capacity by 30,000 tons. And therefore, your CapEx is $100,000 per ton. And I think that's wrong. Can you just separate the $3 billion spend from the 30,000 ton increase in capacity?
Ricardo Ramos clarified that Salar Futuro is not just about increasing capacity; it involves changing technology, improving cost and environmental footprint, and essentially creating a new Salar de Atacama for the next 60 years. The $3 billion investment is for the whole project, not just incremental capacity, and the company will disclose its best estimates in the next two years.