Sociedad Quimica y Minera de Chile SA ADR B

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.