Chile’s SQM earnings leap greater than ten-fold on lithium worth surge By Reuters

(Reuters) -Chilean miner SQM, the world’s second largest lithium producer, posted on Wednesday a ten-fold leap in third-quarter internet revenue, boosted by skyrocketing costs and report excessive gross sales of the steel that could be a key element in rechargeable batteries.

The miner posted a internet revenue of $1.1 billion for the three months ended September. Quarterly income surged greater than 4 occasions year-on-year to $2.95 billion, with lithium revenues rising greater than 12 occasions.

Gross sales volumes for lithium and derivatives totaled 41,000 tonnes, the best quarterly quantity ever reported by the corporate, SQM stated in its earnings report.

“Our constructive leads to the lithium market had been on account of gross sales volumes and costs considerably above common,” the corporate stated. SQM additionally sells industrial chemical compounds.

Common lithium costs rose to report ranges throughout the quarter at greater than $56,000 per tonne, the corporate stated.

Main carmakers are planning to shift away from combustion engines over the subsequent decade as they give the impression of being to adjust to extra stringent environmental guidelines and altering shopper tastes, driving a scramble for lithium, which is extracted from brine in South America’s sprawling salt flats.

SQM forecast international lithium demand to develop this yr by a minimum of 40% on account of rising electrical autos gross sales in China, the place it estimates gross sales of those autos to exceed 6.5 million models, double final yr’s quantity.

Revenues for iodine and its derivatives almost doubled to succeed in $215 million, the corporate stated, as gross sales rose 9%.

Albemarle (NYSE:), the world’s prime lithium producer, additionally reported a surge in gross sales earlier this month.

Each corporations have main tasks underway on Chile’s Atacama salt flats.