SQM - SQM bets on higher sales demand for lithium plans expansion

Sociedad Química y Minera de Chile ([[SQM]] +0.6%) says it is moving ahead with plans to more than double capacity in a bet that accelerating electric-vehicle demand will tighten an oversupplied market for the battery metal.Recently, the company reported lower-than-expected Q3 earnings and forecasts flat lithium prices; the board approved an expansion as part of a $1.3B investment plan in Chile through 2024.SQM expects lithium sales of 60,000 metric tons this year to increase by 30% next year. Sold 17,700 tonnes of lithium in Q3, up 56% Y/Y despite the global downturn and the pandemic.In terms of lithium carbonate capacity, SQM will expand to 120,000 tonnes from 70,000 tonnes by the end of next year, while its hydroxide capacity will increase to 21,500 tonnes. The board has approved taking carbonate to 180,000 tonnes and hydroxide to 30,000 tonnes by 2023. Current production rate is 75,000 tonnes/year.As part of the investment plan

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SQM bets on higher sales, demand for lithium, plans expansion