Chilean miner SQM (NYSE:SQM) reported a steep drop in Q4 2024 profit as declining lithium prices started to weigh on profitability. The world's second-largest lithium producer posted a net profit of $120.

Chile's SQM , the world's second-largest lithium producer, reported a 40.9% fall in fourth-quarter net profit on Wednesday, as higher sales volumes failed to offset a sharp decline in lithium prices.

SQM plans to scale back 2025 spending as lithium prices decline. Despite a Q4 earnings drop, growth in global demand and key projects keep optimism alive.

The Chilean lithium producer will invest $1.1 billion across its businesses in 2025, compared to $1.6 billion in 2024.

Chile’s SQM (NYSE: SQM), the world’s second-largest lithium producer, is scaling back spending this year amid a drawn out weakness in prices for the battery metal erodes margins. The