Sociedad Química y Minera de Chile (SQM), a top global lithium producer, has forecast a 25% increase in worldwide lithium demand for 2026.
This bullish outlook follows a record fourth quarter in 2025, where the company reported sales volumes exceeding 66,000 metric tons—a 50% jump year-over-year.
The primary engines for this demand are the continued expansion of the electric vehicle (EV) market and large-scale energy storage systems (ESS).
SQM indicates the industry is emerging from a global supply glut that depressed prices throughout 2024 and 2025.
This is the first outlook since SQM integrated Chile’s state copper giant, Codelco, into its Atacama operations under a new joint venture, Nova Andino Litio SpA, which aims to increase production by 30% in the coming years.
Global consumption is expected to reach over 1.5 million metric tons this year and potentially rise to 1.7 million tons in 2027.
While spot prices remain significantly below their 2022 peaks, they have shown signs of a “disciplined recovery,” doubling from their mid-2025 lows.
By Anthony Solly
