Sociedad Quimica y Minera de Chile SA ADR B

Albemarle Corporation is pushing ahead with lithium capacity expansion projects across Chile and Australia as it looks to convert strong battery and energy storage demand into higher sales volumes. The company's Energy Storage unit posted an 11% year-over-year increase in second-quarter sales volumes, supported by its integrated conversion facilities, while the Salar yield improvement project in Chile has reached a 50-60% operating rate. In March 2026, Albemarle submitted the environmental assessment permit for a commercial direct lithium extraction project at Salar de Atacama, where its DLE pilot plant has demonstrated lithium recoveries of more than 90%, and the CGP3 expansion at the Greenbushes spodumene mine in Australia is expected to reach full production in the first quarter of 2027. Among peers, Sociedad Quimica y Minera de Chile logged record second-quarter lithium sales volumes of more than 84,000 metric tons of lithium carbonate equivalent, with its Nova Andino Litio business up roughly 47% year over year, and Rio Tinto achieved first production ahead of plan at its Fénix expansion and Sal de Vida projects in Argentina, with its fully owned Rincon Lithium Project on track for first production in 2028. Rio Tinto holds a 53.9% stake in the Nemaska Lithium project, a fully integrated spodumene-to-lithium hydroxide development, with first production also planned for 2028. Albemarle shares have gained 41.5% over the past year, and the Zacks Consensus Estimate implies a 1,541.8% year-over-year rise in 2026 earnings, though EPS estimates have trended lower over the past 60 days.

Sociedad Química y Minera de Chile reported second-quarter revenue of $2.47 billion, up 136.7% year over year, with net income of $660 million, or $2.31 per share, and adjusted EBITDA of $1.32 billion that beat consensus. Lithium and derivatives revenue rose nearly 300% to $1.78 billion on record sales volume of 84,100 metric tons of lithium carbonate equivalent, up 59%, while the realized price in the Novandino business was about $21.80 per kilogram, up 23% sequentially. Management raised its 2026 global lithium-demand forecast to more than 2.1 million metric tons from roughly 1.9 million, citing battery-energy-storage demand that offset slower-than-expected growth in the battery-electric-vehicle market. The company expects third-quarter lithium prices to remain broadly in line with the first-half average and sales volumes to stay near second-quarter levels, with production costs below 2025 levels. SQM plans approximately $3 billion of capital spending from 2026 through 2028, and Salar Futuro could require about $3 billion over seven years after approvals, while the company accrued more than $1.6 billion in payments to the Chilean state during the first half.

Sociedad Química y Minera de Chile reported net income of US$1,024.7 million, or US$3.59 per share, for the six months ended June 30, 2026, up 353.5% from US$225.9 million a year earlier. Gross profit reached US$2,038.6 million, or 48.2% of revenues, versus US$555.2 million in the prior-year period, while revenues totaled US$4,228.5 million, an increase of 103.4% from US$2,079.3 million. For the second quarter alone, net income was US$660.0 million, or US$2.31 per share, up 646.4% from US$88.4 million, with gross profit of US$1,260.0 million and revenues of US$2,468.4 million. CEO Ricardo Ramos said he is encouraged by the solid performance across the company's main business lines.

Tianqi Lithium has released its 2026 half-year performance forecast, projecting net profit of 2.85 billion to 4.25 billion yuan, a year-on-year increase of 3,276.35% to 4,934.91%. After deducting non-recurring items, net profit is expected to be 2.81 billion to 4.2 billion yuan, surging 212,778.79% to 318,081.82%. The company attributed the sharp rise in performance mainly to the development of the new energy industry and growing downstream demand, with the average selling price of major lithium products significantly higher year-on-year. In addition, the half-year performance of its key associate SQM is expected to increase substantially year-on-year, leading to a corresponding sharp rise in investment income recognized by the company. Tianqi Lithium stated it will continue to advance its strategy of resource security and industry chain extension, and has formulated a shareholder return plan for 2026 to 2028, committing to at least one cash dividend every three consecutive years, with cumulative dividends no less than 30% of the average annual distributable profit over the past three years.

SQM and Codelco's Novandino joint venture is targeting a more than 70% increase in lithium production from its Atacama Desert operations, according to an environmental impact study filed Friday. The venture aims to reach as much as 470,000 metric tons per year, compared with fiscal 2026 guidance of about 270,000 tons, as part of a $3 billion overhaul. Output is expected to rise gradually to around 300,000 tons before a seven-year transition to an integrated production system that includes direct lithium extraction technologies. Benchmark Mineral Intelligence analyst Federico Gay said reaching the 470,000-ton target would require additional engineering work, further studies, potential changes to production quotas, and successful deployment of direct lithium extraction technologies aimed at reducing water consumption in the Atacama salt flats. The SQM-Codelco partnership is central to Chile's strategy to increase state participation in lithium production while expanding supply from the world's richest brine deposits.

Albemarle and Sociedad Quimica y Minera de Chile are both poised to benefit from rising lithium prices, but Albemarle may offer better investment prospects due to higher earnings growth projections and lower leverage. Albemarle expects lithium demand to grow 15 to 40 percent this year and is ramping up projects including the Salar yield improvement in Chile and the Meishan conversion facility in China, while delivering 450 million dollars in cost savings in 2025. SQM reported strong first-quarter lithium sales volumes of 69,000 metric tons and raised its 2026 volume growth guidance to 15 percent, with its Nova Andino Litio partnership with Codelco now fully operational. Albemarle trades at a forward price-to-sales ratio of 2.52, slightly above SQM's 2.41, but carries a long-term debt-to-capitalization of 15.2 percent versus SQM's 36.8 percent. Consensus estimates project Albemarle's 2026 earnings per share to surge 1,743 percent year-over-year, compared with a 251.9 percent rise for SQM.