Why Sociedad Quimica Stock Powered Higher Today

Published: Monday, November 17, 2025 at 5:34 pm

Sociedad Quimica Stock Surges on Lithium Demand Forecast

Shares of Sociedad Quimica y Minera de Chile (SQM) experienced a significant surge today, climbing nearly 13% by midday. The rally was fueled by optimistic projections for the lithium market, specifically stemming from comments made by Ganfeng Lithium Group chairman Li Liangbin.

According to reports, Chairman Li anticipates a substantial increase in global lithium demand, potentially growing by 30% to 40% in 2026. This positive outlook has already begun to impact the market. Lithium carbonate contracts on China's Guangzhou Futures Exchange saw a notable increase, rising 9% and reaching a price of 95,200 yuan ($13,401.28) per metric ton. This marks the highest price point for this battery component since June 2024.

The potential for further price increases is also on the horizon. Chairman Li has suggested that lithium prices could climb even higher, potentially reaching 150,000 or even 200,000 yuan per ton. This could translate to a significant surge in profits for lithium mining companies, assuming production costs remain relatively stable.

Prior to these recent developments, SQM was already showing signs of recovery. Analysts polled by S&P Global Market Intelligence predict the company will achieve earnings of $2.26 per share this year, with a projected profit growth of 35% to $3.06 per share in 2026. These forecasts were made before the latest projections from Chairman Li.

The company's current price-to-earnings ratio is 32.6, suggesting that the stock could be undervalued, especially if the anticipated demand and price increases materialize.

BNN's Perspective:

The positive outlook for lithium, driven by the anticipated surge in demand, presents a compelling case for investors. While the market is subject to volatility, the potential for significant profit growth in the lithium sector is undeniable. Investors should carefully consider the risks and rewards before making any investment decisions.

Keywords: Sociedad Quimica y Minera de Chile, SQM, lithium, lithium demand, Ganfeng Lithium Group, Li Liangbin, lithium prices, Guangzhou Futures Exchange, battery component, stock market, investment, profit growth, value stock

Full Story