SQM Shares Soar 1.32% on Lithium Demand

Sociedad Quimica y Minera de Chile (SQM) shares surged 1.32% today, marking the second consecutive day of gains, with a total increase of 6.95% over the past two days. The stock price reached its highest level since April 2025, with an intraday gain of 2.03%.

SQM's stock performance is significantly influenced by the growing demand for lithium, a critical component in the production of batteries for electric vehicles and energy storage systems. The company is a major player in the lithium market, and recent trends in the Battery Grade Lithium Sulfide Market have contributed to the rise in its stock price.

Over the past three years, SQM's earnings per share (EPS) have declined by 22% annually. This decrease in EPS has been closely correlated with a similar decline in share price, indicating that market sentiment has remained relatively stable despite the drop in earnings. This suggests that investors are taking a long-term view of the company's prospects, focusing on its strategic position in the lithium market rather than short-term financial performance.

While the share price return over the last three years has been -53%, the Total Shareholder Return (TSR) has been -49%. This discrepancy is largely due to dividend payments, which have helped to mitigate the impact of the share price decline on overall investor returns. This highlights the importance of dividends in providing a more comprehensive view of stock performance and the value that SQM offers to its shareholders.