Wedoany.com Report-Nov. 20, Executives from Chilean lithium producer SQM stated on Wednesday that global lithium demand in 2025 is projected to exceed 1.5 million metric tons of lithium carbonate equivalent (LCE), reflecting approximately 25% growth compared to 2024 levels.

A truck loads concentrated brine at SQM lithium mine at the Atacama salt flat, in Antofagasta region, Chile, May 3, 2023.

The forecast reflects continued strong expansion in electric vehicle battery production and energy storage applications worldwide, with major automakers and battery manufacturers maintaining aggressive deployment schedules.

During an earnings conference call with analysts, SQM CEO Ricardo Ramos also confirmed that the company anticipates receiving final regulatory and corporate approvals for its proposed lithium joint venture with Chilean state copper company Codelco before the end of 2025.

“We will close this year, that’s for sure,” Ramos said regarding the timeline for completing the partnership agreement.

The joint venture will combine SQM’s existing operations in the Salar de Atacama with Codelco’s mining expertise and state ownership to ensure long-term development of Chile’s lithium resources while increasing national participation in the sector.

SQM currently holds long-term leases in the Atacama salt flat, one of the world’s highest-grade and lowest-cost lithium sources. The new structure is expected to extend operational continuity beyond current agreements while introducing updated governance and production-sharing arrangements.

Company guidance indicates that SQM’s sales volumes for 2025 are likely to show significant year-on-year growth, supported by recently completed capacity expansions at its carbonate and hydroxide plants in northern Chile.

Production at these facilities has been ramping up throughout 2024, positioning SQM to capture rising demand from qualified battery supply chains in Asia, Europe, and North America.

Management highlighted that average realized prices remain supportive despite recent market adjustments, with long-term contracts providing stability and spot exposure allowing participation in periods of stronger pricing.

The anticipated demand increase to over 1.5 million tons aligns with industry consensus forecasts that factor in continued electric vehicle market penetration and growing requirements for grid-scale energy storage systems.

Once finalized, the Codelco partnership is expected to secure SQM’s access to Atacama brine resources through at least 2060 while establishing new investment commitments for environmental monitoring, community development, and technology improvements.

SQM continues to operate additional lithium assets in Australia through its joint venture with Wesfarmers and maintains hydroxide conversion capacity in China to serve regional customers directly.

The company’s updated outlook reinforces Chile’s position as one of the world’s leading lithium suppliers, with combined production from SQM and Albemarle expected to contribute substantially to global availability in 2025 and beyond.

Analysts following the sector view the combination of robust demand growth and resolution of long-term operational certainty in Chile as positive developments for supply-chain stability in the battery materials industry.