Chilean lithium and potash producer SQM recorded a sharp decline in its potash revenue and sales volumes during the third quarter of this year. The company continues to prioritize increased lithium production over MOP output at its Salar de Atacama operations, leading to reduced potash availability.
SQM’s MOP revenue for July–September reached $33.8mn, almost half of the $68.2mn posted during the same period last year. Sales volumes fell even more steeply. The company sold 66,800t of MOP in the quarter, down by 62pc from 175,700t a year earlier.
This drop reflects SQM’s plan to scale down MOP production by about 50pc this year to around 350,000t, compared with 695,000t of sales in 2024. The goal is to free up more capacity to focus on lithium output, which remains a core growth segment for the firm.
While MOP performance weakened, SQM’s specialty plant nutrition segment — primarily driven by NOP (potassium nitrate) sales — delivered stronger results. Revenue in this category rose by 4pc to $259.8mn in the third quarter, up from $249.1mn in the same period last year.
Sales volumes in the segment edged higher as well, reaching 277,800t, an increase of 2pc year-on-year. The company cited solid demand in major agricultural markets, especially across the Americas and Europe.
Nine-Month Performance Also Highlights Potash Decline
The downturn extended into SQM’s year-to-date results.
From January to September, MOP revenue totaled $116.7mn, down 43pc from $204.9mn a year earlier. Sales volumes fell even more sharply, dropping 52pc to 252,800t, compared with 528,600t during the same period in 2023.
In contrast, the specialty plant nutrition business continued to show resilience. Revenue rose 2pc to $732.4mn, and sales volumes increased by 2pc to 759,700t, supported by stable global demand.
SQM’s strategic shift toward lithium production is expected to continue shaping its potash performance in the coming quarters, as the company prioritizes higher-value products and strengthens its position in the global battery materials supply chain.
