macro

SQM Sees Global Lithium Demand Rising 25% in 2026; Prices to Gain

March 2, 20261 min readQuick Read

Fazen Markets Research

AI-Enhanced Analysis

SQMlithium demandlithium pricesbattery metalsEV demand

Key Takeaways

1SQM expects global lithium demand to increase about 25% this year, supported by robust EV and energy-storage adoption, and cites record sales volume and better-than-expected revenue as evidence of improving market fundamentals. The company projects that lithium prices will extend recent gains as the market moves past the prior glut.

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Snapshot

Date: February 28, 2026 (updated March 2, 2026)

Top lithium producer SQM (ticker: SQM) expects global lithium demand to grow about 25% this year. The company reported record sales volume and better-than-expected revenue and projects that prices for the battery metal will continue to strengthen as demand tightens and the industry emerges from a global glut.

Key data points

Projected demand growth: ~25% year-over-year for the current year
Company performance: record sales volume and revenue above expectations
Demand drivers: electric vehicles (EVs) and energy-storage systems (ESS)
Market signal: expectation that lithium prices will extend recent gains

These statements are direct, quotable takeaways for market participants evaluating supply-demand dynamics in battery metals.

Market context and implications

SQM’s projection of roughly 25% demand growth underscores an accelerating recovery in the lithium market following a period of oversupply. Stronger EV and ESS uptake is highlighted as the primary growth engine. For traders and institutional investors, the combination of higher demand and company-level operational strength (record sales volume, above-expectation revenue) increases the probability of upward price pressure on lithium and related equities.

Key implications:

Price sensitivity: With demand expanding materially, lithium prices are more likely to face upward pressure if supply additions lag.
Earnings outlook: Record sales volume and revenue beats at SQM can support stronger near-term earnings revisions for the company.
Peer tracking: Monitor related tickers and peers (AM, PM) for correlated moves as market sentiment shifts.

What professional traders and analysts should watch

Volume and revenue trends reported in subsequent quarterly updates to confirm the trajectory of demand and margins.
Inventory and production guidance that could affect how quickly the market tightens.
Price action in global lithium benchmarks and spot markets, which will reflect the interplay of EV/ESS demand and supply recovery.

Bottom line

SQM expects global lithium demand to increase about 25% this year, supported by robust EV and energy-storage adoption, and cites record sales volume and better-than-expected revenue as evidence of improving market fundamentals. The company projects that lithium prices will extend recent gains as the market moves past the prior glut.