The world's second-largest lithium producer reported profits of US$131.4 million between July and September, compared to US$479.3 million recorded in the same period in 2023.

Profit at Chile's SQM, the world's second-largest lithium producer, fell 73% in the third quarter amid a downward trend in the price of the key component for electric vehicle batteries.

In its results published early Wednesday morning, the company - which also produces specialty fertilizers - reported profits of US$ 131.4 million between July and September, versus the US$ 479.3 million reported in the same period in 2023.

On the other hand, its quarterly ordinary income totaled US$ 1,077 million, 42% lower year-on-year.

SQM operates in the coveted Atacama salt flat in northern Chile, one of the largest lithium brine deposits in the world.

"In lithium, we reported sales volumes of more than 51,000 metric tons of lithium products, a year-over-year growth of 18%, demonstrating strong market demand," SQM CEO Ricardo Ramos was quoted as saying in a statement.

"As we anticipated, lithium prices continued their downward trend during the third quarter, with average realized prices 24% lower than the second quarter of this year," he added.

The executive pointed out that prices remain under pressure due to an excess of supply despite the announcement of supply restrictions that we have seen in recent weeks.

The average sales price for the third quarter reached approximately US$9,700 per metric ton, a decrease of 67.1% year-over-year.

"Our announced expected sales volumes remain unchanged, expected to reach between 190,000 to 195,000 metric tons of product by year-end," the firm said.