SQM Earnings: Lower Lithium Prices Will Likely Lead to Delayed Australia Expansions

SQM's second-quarter earnings reflected the lithium price decline as companywide adjusted EBITDA fell more than 50% versus the prior-year quarter. We're updating our model to reflect our reduced lithium price forecast. Our new forecast is for prices to average $20,000 per metric ton over the next decade, which aligns with our view of the marginal cost of production. This is below our prior forecast for prices to average $25,000 per metric ton.