Summary
- The end of EV subsidies in China and increasing lithium production caused lithium prices to drop in the past few months.
- However, lithium prices are significantly higher than the 5-year average, and the long-term demand for electric cars is strong.
- SQM’s net debt and total equity are well enough to tailor a scope of capacity to reward its shareholders and assimilate upcoming risks.
- In the third quarter of 2023, SQM catered the highest amount of $1255.2 million in free cash flow compared with recent quarters.
- SQM stock is a buy.
For further details see:
SQM: Lithium Prices Are Still Relatively High