Common shares of Chilean lithium producer SQM rose more than 3% in Santiago on Tuesday after Scotiabank reiterated its bullish stance on the company. The bank said its recent meetings with executives reinforced expectations for strong lithium demand growth and underscored SQM’s cost advantages at Chile’s Salar de Atacama.

Lithium Demand and Cost Advantages

Scotiabank maintained its “Sector Outperform” rating and a $105 price target, calling SQM one of its top picks for 2026. The broker said SQM sees lithium incentive pricing at around $18 per kilogram, within a broader $15-to-$20 range, and believes demand will keep expanding sharply through the end of the decade, requiring new supply from market entrants.

SQM’s all-in lithium cost, excluding payments to state development agency Corfo, is about $4,500 per metric ton, helping preserve its position as one of the industry’s lowest-cost producers. The company expects to decide in coming months whether to pursue an expansion at the Mt. Holland project in Australia that could double capacity to 100,000 metric tons, with half of that attributable to SQM.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.