SQM(US:SQM) Yahoo Finance·2025-12-17 17:00Core Viewpoint - Shares of Sociedad Quimica Y Minera de Chile S.A. (SQM) rose by 5% due to developments in the Chinese lithium market, which are expected to influence lithium prices positively [1][3]. Group 1: Market Developments - The Bureau of Natural Resources in Yichun, Jiangxi Province, plans to cancel 27 lithium mining permits, leading to a 7.6% increase in lithium prices in China [3]. - Analysts believe that the cancellation of these permits will have little impact on lithium supply, as the revoked licenses did not cover operating mines [4]. - The potential for lithium supply growth has decreased, while the likelihood of rising lithium prices has increased [5]. Group 2: Company Performance - SQM is one of the few lithium companies that is already profitable, having earned $525 million last year and generated positive free cash flow [6]. - SQM's stock is valued at 35 times trailing earnings, indicating it is not considered "cheap," but it is viewed as a better investment compared to many alternatives if a lithium price boom occurs [8]. Group 3: Investment Considerations - Despite the positive outlook for SQM, it was not included in a list of the 10 best stocks recommended by The Motley Fool Stock Advisor, which suggests investors consider other options [9].