Ricardo Ramos, the CEO of SQM, showcased remarkable optimism for the lithium market’s future, especially highlighting an aggressive investment strategy during the recent inauguration of the Mt Holland lithium project. Despite current lithium prices not being at their peak, Ramos foresees a positive trajectory for the market by the year’s end and anticipates further improvements into the next year. His long-term outlook is buoyed by the rapidly growing demand within the industry.
SQM, a leading lithium producer based in Chile, boasts a production capacity of 200,000 metric tonnes of lithium carbonate. Ramos expressed the company’s ambition to mirror this success in Australia and other countries, seizing additional opportunities to expand their global footprint. A significant step towards this goal is SQM’s ongoing acquisition of the Andover project, in partnership with Gina Rinehart’s Hancock Prospecting, demonstrating the company’s commitment to fortifying its presence in the Australian lithium market.
With a particular focus on Australia, Ramos conveyed his aspiration to boost SQM’s production capacity by an additional 300,000 metric tonnes outside Chile. He underscored the importance of aggressive investment strategies to ensure the company’s pivotal role in meeting the escalating global lithium demand. Ramos emphasized the inevitability of higher production costs for the additional 500,000 metric tonnes required to satiate market demand, highlighting the strategic advantage of Mt Holland’s position in the lower end of the cost curve, making it a lucrative investment for both Wesfarmers and SQM.
Echoing Ramos’ confidence, Wesfarmers’ managing director, Rob Scott, also anticipates a rise in lithium prices, attributing it to the evolving nature of the lithium market. Scott’s comments reflect a pragmatic view of the market’s fluctuations, noting the potential for high prices to attract producers with higher cost structures. However, he acknowledges a current adjustment phase within the industry, with some producers scaling back operations in response to market conditions. 
