SQM Shares Surge as Lithium Joint Venture Commences Operations

SQM US8336351056

SQM's stock price climbed significantly in today's trading session, establishing a fresh 52-week peak. This upward movement is attributed to the operational launch of its joint venture with Chile's state-owned Codelco and a series of favorable analyst commentaries issued at the start of the week. Market experts, including those from Berenberg, highlighted the resolution of long-standing concession uncertainties as a primary catalyst for a potential re-rating of the equity.

The focal point of this development is Nova Andino Litio, the newly established operating entity for the Salar de Atacama lithium project. This strategic partnership was formally finalized in late December 2025. Notably, the agreed-upon financial terms are being applied retroactively, effective from January 1, 2025.

The transaction was executed through the absorption of Codelco's subsidiary, Minera Tarar, into the former SQM Salar division. The consolidated company, now operating under the Nova Andino Litio name, is tasked with unifying lithium exploration, production, and marketing activities at the Salar de Atacama through the year 2060. Its inaugural board meeting was convened on December 29, 2025, with governance structured on an equal basis: three directors represent SQM and three represent Codelco.

Key Financial Terms:
* From now until 2030, Codelco and the Chilean state are entitled to approximately 70% of the operation's margin.
* Starting in 2031, this share is scheduled to increase to roughly 85%.
* The company has confirmed that these conditions are already in effect for the 2025 fiscal year.

Pending Legal Resolution

While the venture is now operational, one legal proceeding remains outstanding. Tianqi Lithium's subsidiary, Inversiones TLC, has filed an appeal with Chile's Supreme Court. This follows a lower appellate court in Santiago dismissing an earlier complaint from the company at the end of 2025. The Supreme Court's pending ruling represents the final legal question that must be settled to permanently solidify the partnership's standing. Its decision will provide definitive legal clarity on the long-term status of the agreement.

Market Outlook and Upcoming Catalysts

From a technical analysis perspective, today's price action is viewed as bullish, with shares breaking through a prior resistance level around $72.50. Fundamental optimism is further bolstered by projected market dynamics; global lithium demand is forecast to grow by approximately 25% in 2026.

Investors are now looking ahead to several imminent milestones:

• Q4 2025 Earnings Report: Scheduled for release on February 26, 2026.
• Q4 EPS Consensus Estimate: Around $0.79 per share (compared to $0.42 in the prior-year period).

During the upcoming earnings call, SQM's management is expected to provide detailed information regarding the balance sheet consolidation of Nova Andino Litio and outline the framework for the first dividend distribution under the new joint venture structure.