Sociedad Quimica y Minera de Chile SA $SQM stock has a confirmed break above its 200 day moving average. The money flow has broken positive for the first time in more than two months. The stock is in a technical uptrend.
Sociedad Quimica y Minera de Chile is, in terms of market capitalization, the second-largest producer of lithium on the planet. Lithium accounts for more than 75% of SQM’s revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th..., thanks to its low-cost, long-running brine operations.
The Inflation Reduction Act, whose light duty EV tax credit of up to $7,500 per vehicle has been extended through 2032, was recently signed into law by President Joe Biden. In addition, the law provides $1 billion for States, Municipalities, Indian tribes, or nonprofit organizations to transport students to and from school using electric vehicles (EVs). The demand for EVs in the US will undoubtedly rise as a result of both. This is significant because it will ensure that lithium prices remain stable, if not rise, which will be extremely advantageous to SQM since its lithium is primarily used in the production of electric vehicles.
Lithium, specialty plant nutrients, and iodine make up the majority of SQM’s business, accounting for over 94 percent of their most recent revenue figures in the third quarter of 2022. SQM also deals in industrial chemicals, lithium, and specialty plant nutrients. The majority of SQM’s mining operations are in Chile, though an expansion into Australia is planned. Both Chile and China are home to their processing facilities.
SQM’s financial performance from Q3 2021 to Q3 2022 was outstanding in many ways. Revenue increased by 322% during this time, and net profit increased by 926%. Additionally, the profit margins significantly increased during the same time frame, rising from 15% to 36%.
America’s largest lithium mine ramps up production as the world moves to sustainable energy
