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Summary
In my view it’s time for investors to get back into the ring, the risk-reward symmetry has changed to the upside for Sociedad Química y Minera de Chile S.A. (NYSE:SQM). The balance between supply and demand flipped in less than a year. In 2022 EV, battery, and lithium demand grew over 60% (9% penetration) catching the supply chain off guard and resulting in a massive spike in prices. I assumed the LCE (Lithium carbonate equivalent) prices would decline from US$80kg to US$20kg in 2024 under a more balanced supply-demand equation. I did not foresee…
