7 Undervalued Lithium Stocks to Invest In

5. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)

Number of Hedge Fund Holders: 10

Forward Price to Earnings (P/E) Ratio: 13

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a global mining company that produces lithium, specialty plant nutrients, potassium fertilizers, and iodine. The company plays a vital role in the lithium supply chain, taking advantage of the rising demand for electric vehicles and energy storage solutions. Fueled by strong market demand and successful capacity expansion efforts in Chile, SQM achieved record lithium sales volumes of nearly 205,000 metric tons in 2024.

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) reported over $4.5 billion in full-year revenues, with a gross profit of approximately $1.3 billion, despite decreasing lithium prices throughout 2024. However, a one-time $1.1 billion charge linked to a tax dispute over its mining operations affected its net income.

Furthermore, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is prioritizing lithium hydroxide production in Chile, aiming to reach 100,000 metric tons in the coming years. In 2025, the company has allocated $750 million to expand lithium capacity both domestically and abroad while reserving $350 million for caliche operations to enhance iodine and iron ore output. Its competitive position in the global lithium market is secured by these efforts, which align with its long-term growth strategy.

Looking ahead, SQM projects that lithium demand will rise by approximately 17% in 2025, with stable pricing trends. The company has forecasted that lithium production will grow to 230,000 metric tons. It remains focused on its collaboration with Codelco on future lithium projects, with regulatory approvals expected later in the year. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is positioned among the undervalued lithium stocks due to these strategic developments.