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March 2 (Reuters) – Chile’s SQM SQMA.SN, the world’s second-largest lithium producer, on Thursday posted a fourth-quarter net profit that more than tripled, fueled by demand for the white metal used by car makers in the booming electric vehicle industry.
Lithium prices have surged in recent years as car makers scramble to make more EVs, complying with more stringent climate rules from governments.
The South American chemicals firm said it sold record volumes of white lithium and its derivatives in 2022, helped by “very strong” quarterly demand, driven by more production of cathodes and electric vehicles (EVs).
Lithium volumes rose 38% to 43,000 tonnes in the fourth quarter, selling at a record average price of $59,000 per tonne.
The company posted a net profit of $1.15 billion for the three months ended December 2022, from revenues up nearly three-fold at $3.13 billion.
SQM’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), also surged to $1.67 billion, from just $560 million a year earlier.
It said that some sales anticipated during 2023 had been brought forward into the end of 2022 as the market prepares for an expected end to Chinese EV subsidies.
In a separate statement, SQM said it planned to invest around $3.4 billion from 2023 to 2025, focusing on expanding its Chilean lithium capacities. The roadmap includes $1.2 billion earmarked for this year.
(Reporting by Sarah Morland, Kylie Madry and Noe Torres; Editing by Nivedita Bhattacharjee)
((sarah.morland@thomsonreuters.com;))
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