SQM Shares Soar 2.24% on Lithium Demand

Sociedad Quimica y Minera de Chile (SQM) shares rose to their highest level since April 2025 today, with an intraday gain of 2.24%.

The strategy of buying SQM shares after they reached a recent high and holding for one week resulted in poor performance. The strategy yielded an excess return of -123.50% and a CAGR of -35.71%, significantly underperforming the benchmark return of 56.99%. This indicates that this strategy failed to capitalize on the market's gains, resulting in substantial losses.

SQM's stock price has been significantly influenced by the growing demand for lithium, a critical component in the production of electric vehicle batteries and energy storage systems. This demand is expected to continue rising, which bodes well for SQM as long as lithium prices remain favorable.

In recent market activity, SQM's shares surged by 4.93% on July 2, reaching an intraday high. This surge indicates a strong positive market reaction, reflecting investor confidence in the company's prospects. The stock price has risen in 7 of the last 10 days, with an increase of 16.42% over the past two weeks, suggesting a robust upward trend.

Additionally, Chile's Codelco has partnered with SQM to develop lithium refining in the Salar de Atacama. This strategic collaboration is expected to positively impact SQM's business operations and stock price, as it enhances the company's capabilities in lithium production and refining. The partnership leverages SQM's expertise and Codelco's resources, positioning SQM for further growth in the lithium market.