Sociedad Química y Minera de Chile (SQM) delivered a solid set of results for the third quarter of 2025, even though earnings came in slightly below what Wall Street expected. The company reported net income of $0.62 per share, just $0.02 short of analyst forecasts.

Revenue for the quarter reached $1.17 billion, supported by strong performance in its lithium business. Record lithium sales volumes played a major role in boosting the company’s top line, showing how quickly demand has improved across global battery markets.

Lithium Momentum Pushes SQM Toward a Strong 2025

• Gross profit climbed 23.1% year-over-year to $345.8 million, marking a strong rebound after a period of weaker prices earlier in the cycle.

Reuters noted that SQM benefited from rising lithium prices as electric vehicle (EV) demand recovered and large-scale battery storage projects expanded around the world. With these trends gaining strength, SQM raised its 2025 global lithium demand growth forecast to more than 20%, up from its earlier estimate of around 17%.

Looking ahead, SQM maintains a positive outlook for the market. The company plans to invest $2.7 billion over the next three years to expand lithium production capacity in Chile. SQM expects lithium prices to stay on an upward trend in the fourth quarter of 2025 as demand from EVs and energy storage systems continues to accelerate.

China’s Bullish Outlook Sparks a Market Rally

While SQM’s results were strong on their own, global sentiment around lithium improved even more after China’s Ganfeng Lithium issued a highly optimistic forecast. According to Bloomberg, Ganfeng Chairman Li Liangbin projected 30% growth in lithium demand next year. His comments immediately triggered a sharp rally in both lithium prices and mining stocks.

The most-active lithium carbonate futures contract on the Guangzhou Futures Exchange jumped 9%, hitting the daily upper limit of 95,200 yuan per ton (around $13,400). Investors reacted quickly, sending shares of major producers higher. SQM’s stock rose as much as 14%, and Albemarle shares climbed about 9.3% during the rally.

This price surge helped strengthen SQM’s quarterly financials. The company reported net income of $178.4 million, a 36% jump from $131.4 million a year earlier.

Revenue climbed 8.9%, rising from $1.08 billion to $1.17 billion over the same period. With growing investor confidence, SQM’s U.S.-listed shares touched $64.60, their highest level in more than two years.

• CHECK OUT: LIVE LITHIUM PRICES 
• MUST READ: Top 5 Lithium Producers Powering the Battery Market in 2025 

Lithium Market Shifts Into Recovery

Despite these strong results, the lithium industry is still navigating a market that has gone through significant volatility. Lithium prices cooled sharply after reaching record highs in 2022, as supply growth outpaced demand. This pressured margins for SQM, Albemarle, and other major producers.

However, the second half of 2025 brought a noticeable turnaround. SQM said demand between July and September was stronger than expected.

CEO Ricardo Ramos told analysts that although the market remained volatile, SQM was “cautiously optimistic” about the coming months. He emphasized that fundamentals remain strong because demand is rising not just for electric vehicles but also from energy storage systems, which are becoming essential for renewable power grids.

SQM Sees Sharp Demand Jump Ahead of Codelco Deal

Additionally, the mining giant expects global lithium demand in 2025 to exceed 1.5 million metric tons, representing a 25% jump from 2024. Demand could rise further to 1.7 million metric tons by 2026, according to Pablo Hernandez, vice president of strategy and development for SQM’s Chilean lithium division.

However, even with stronger demand signals, he noted that the company remains conservative when estimating next year’s growth.

The company is also preparing to finalize its long-awaited partnership with state-owned miner Codelco. The joint venture will expand lithium extraction in the Atacama salt flat. With China’s market regulator now approving the deal, the final step is receiving a sign-off from Chile’s comptroller. CEO Ricardo Ramos said he is confident the deal will close before the end of the year.

JP Morgan Raises Long-Term Lithium Price Forecast

JP Morgan raised its long-term outlook for lithium prices as demand stayed strong and mining costs climbed. Earlier this year, the bank cut its long-term spodumene forecast to $1,100 per ton. After reassessing global trends, it now sees that number as too low and has increased its estimate to $1,300 per ton.

Why the Upgrade?

• Stronger Demand: Rapid EV and energy storage growth is expected to keep long-term demand elevated. Rising capital and operating costs also mean new projects need higher prices to advance.

• Market Alignment: Investors already assume long-term prices in the $1,200–$1,300 per ton range. JP Morgan’s new forecast better reflects market sentiment and helps identify trading inflection points.

• Supply Discipline: Australian miners say operations at Bald Hill, Wodgina, and Ngungaju won’t restart until prices exceed $1,200 per ton. JP Morgan sees similar discipline emerging in China, reducing the risk of oversupply.

The bank kept its long-term lithium carbonate and hydroxide assumptions at $15,000 per ton, calling these levels “incentive prices” for downstream investment. In the near term, JP Morgan lifted its 2026–2027 spodumene outlook from $800 per ton to $1,100–$1,200 per ton as it expects a tighter market and potential deficits.

The Bottom Line

SQM is benefiting from a fast-improving lithium market driven by strong EV and battery storage momentum. Rising prices, improved demand, and growing investor enthusiasm are lifting the company’s performance. Although volatility remains, SQM enters 2026 with record volumes, a solid financial foundation, and a clearer long-term strategy supported by disciplined supply and a stronger pricing outlook.

• READ MORE: China’s Grip on Lithium Tightens as Global Supply Struggles to Keep Up

The post SQM Bets Big With $2.7 Billion Expansion as Lithium Prices Rebound and Demand Surges appeared first on Carbon Credits.

The International Finance Corporation (IFC), a World Bank Group member, is making a $100 million investment in Brookfield Asset Management’s Catalytic Transition Fund. This fund focuses on climate solutions in emerging markets. It aims to help developing economies shift to cleaner power, reduce emissions, and support long-term sustainable growth.

The IFC is committed to increasing climate finance. This is important for countries that often find it hard to get large funding for green projects.

The investment is part of IFC’s broader effort to expand private capital flows into climate-related industries. Many emerging markets need new infrastructure, updated technologies, and access to clean energy. The Catalytic Transition Fund aims to meet these needs. It directs capital to companies and projects that provide both environmental and economic benefits.

What the Catalytic Transition Fund Aims to Do

Brookfield started the Catalytic Transition Fund to boost investments in areas with little climate finance. The fund targets up to $5 billion in total capital. It focuses on activities that support the energy transition, industrial decarbonization, sustainable living, and new climate technologies.

The $5 billion capital is in line with the scale of investment needed to target clean transition sectors in emerging markets. This is compared to the current annual global clean energy investment of about $1 trillion.

The fund operates across several regions, including South and Southeast Asia, Latin America, Eastern Europe, and the Middle East. These regions represent a large share of global energy demand and industrial activity. However, many countries in these areas face challenges.

They deal with aging infrastructure, limited access to clean power, and rising climate impacts. By investing in these markets, the fund aims to reduce emissions while supporting economic development.

Brookfield has committed at least 10% of the fund’s total capital. This commitment shows that it shares interests with other investors. It also signals confidence in the fund’s long-term potential. The Catalytic Transition Fund had its first close at $2.4 billion in 2024. This shows strong early backing from institutional investors.

The fund’s core strategy is to support projects that can scale quickly and deliver measurable results. It focuses on clean power generation, industrial upgrades, and systems that support energy efficiency. These investments are designed to help companies reduce their emissions and operate more sustainably. They also help improve energy reliability and reduce long-term costs.

Why IFC’s Investment Is Important

IFC’s $100 million investment plays a significant role in strengthening the fund’s ability to reach its targets. IFC is part of the World Bank Group and specializes in supporting private-sector development in emerging markets. When IFC invests in a fund or project, it sends a signal to global investors that the opportunity is sound and that risks can be managed.

Connor Teskey, President of Brookfield Asset Management, commented:

“IFC’s investment in the Fund accelerates our ability to deploy capital at scale into investments that support economic growth, energy security and decarbonization in emerging markets. Combined with Brookfield’s decades of experience in renewable power and transition investing, IFC’s investment and global knowledge will help deliver meaningful impact for emerging markets, investors and the energy transition at large.”

IFC’s participation also helps attract additional private capital. Many investors like climate projects. But they often worry about regulatory stability, currency risks, and short track records. IFC’s involvement reduces these concerns. It shows that experts in development finance have reviewed the fund’s strategy and view it as a credible opportunity.

The fund also uses a blended-finance model. This means it includes capital with different levels of risk and return expectations. One of the anchor investors, ALTÉRRA, has committed around $1 billion to the fund, but with capped returns. This model improves risk-adjusted returns for the other investors, making the fund more attractive.

Blended finance helps fund climate projects in developing countries. It lowers early-stage risk, making investments safer. This financing structure can reduce perceived investment risks by up to 30-50%. Thus, it significantly attracts private capital that might otherwise avoid emerging markets.

Since 2016, IFC has committed over $18 billion in own-account climate-related investments, reflecting its growing focus on sustainable development.

Closing the Climate Investment Gap in Emerging Markets

Emerging markets need far more climate investment than they currently receive. These regions represent ~60% of global emissions but receive around 40% of global climate finance.

Many developing economies still depend heavily on coal, oil, and other fossil fuels. They also face growing energy demand as populations expand and economies grow.

The United Nations estimates that developing countries require $1.3 trillion annually in climate finance through 2030 to meet Paris Agreement goals. This underlines the urgency behind funds like Brookfield’s Catalytic Transition Fund.

Without major investments in clean energy, these countries may struggle to reduce emissions. The lack of investment also limits economic opportunities. Clean power systems, efficient factories, and low-carbon technologies can create new industries and jobs.

The Catalytic Transition Fund seeks to close part of this investment gap. It sends funds to key areas like renewable energy, tech upgrades for industries, and sustainable infrastructure. These projects can lower emissions and increase energy access.

The fund highlights several priority areas, including:

• Renewable power sources, such as solar, wind, and hydro.
• Industrial systems that reduce energy waste.
• Technologies that improve energy storage and grid reliability.

These projects support both climate goals and long-term economic development. Clean energy can lower energy costs over time, reduce pollution, and support new business opportunities.

The IFC estimates that these markets could attract as much as $23 trillion in climate-related investments by 2030. These investments can lower environmental impacts while creating major growth opportunities.

SEE MORE: Goldman Sachs Launches Green Bonds ETF for Emerging Markets

Risks and Challenges That Investors Face

Investing in emerging markets involves risks, including these ones:.

• Political and regulatory shifts: Policy changes can affect power prices, incentives, and project timelines.
• Currency risk: Exchange-rate swings impact returns when revenues are in local currency but costs or debt are in foreign currency.
• Technology risk: New or fast-evolving climate technologies may underperform at scale; require strong technical capacity and supply chains.
• Exit risk: Smaller capital markets and fewer buyers in some emerging markets make exits harder.
• Mitigation measures: Strong governance, portfolio diversification, and IFC’s oversight help reduce overall risk.

Strong governance practices and diversified portfolios can help lower risks. IFC’s participation also adds reassurance that the fund has strong risk management systems in place.

A Path Forward for Scalable, High-Impact Climate Projects

IFC’s $100 million investment in Brookfield’s Catalytic Transition Fund is a major step in expanding climate finance in emerging markets. The fund supports clean energy, decarbonizing industries, and climate tech in various areas.

The fund also lowers risks by mixing private capital with catalytic finance. This approach invites more investors to join in.

Moreover, the initiative supports long-term global climate goals while also promoting economic development. Emerging markets need significant investment to transition to cleaner energy and more sustainable industries. More than 700 million people in these regions still lack access to reliable electricity. Funds like this play a key role in closing that gap.

The Catalytic Transition Fund will succeed with strong project selection, good risk management, and clear results. If it performs well, it may serve as a model for future climate finance efforts in developing economies.

• READ MORE: From Baku to Belém: Can COP30 Deliver the $1.3 Trillion Climate Finance Pledge?

The post IFC Backs Brookfield’s $5B Climate Fund with $100M Investment appeared first on Carbon Credits.

Honda is taking a new step toward its climate goals by supporting farmers across the United States. The company has joined Carbon by Indigo, a leading regenerative agriculture program that helps farmers improve soil health, capture carbon, and boost their income. Through this partnership, Honda is backing 1,800 metric tons of soil carbon removals, which brings the company closer to its long-term decarbonization targets.

Mahjabeen Qadir, sustainability strategy lead at Honda Development & Manufacturing of America, LLC, said:

“For over 40 years, Honda has supported farmers near our Ohio operations through conservation programs that protect farmland and help expand access to markets for their crops. Now, Honda is building on that history by supporting regenerative agriculture practices that help farmers manage climate challenges and maintain healthy farmland for future generations.”

Regenerative Farming: A Simple Way to Heal Soil and Cut Emissions

Regenerative agriculture is becoming a powerful tool in the fight against climate change. It helps the soil store more carbon, keeps water in the ground, and strengthens farms against extreme weather.

Carbon by Indigo: Empowering Farmers With High-Value Carbon Credits

Farmers who join Carbon by Indigo receive guidance on practices like:

• Planting cover crops
• Reducing tillage
• Rotating crops
• Using nitrogen more efficiently

These methods build healthier soil and reduce runoff. They also improve air quality and make farmland more resilient over time.

The company produces high-quality agricultural soil carbon credits that help farmers strengthen their bottom line while enabling corporations to reduce risk by supporting carbon removals, emission reductions, and water benefits.

• Under its standard program, the company returns 75% of the carbon credit purchase price to the farmer.

In this case, farmers generate verified soil carbon credits that companies like Honda purchase to offset hard-to-eliminate emissions.

Carbon by Indigo Program Highlights

Dean Banks, CEO of Indigo Ag, said:

“Indigo proudly works with companies like Honda to take action on achieving their climate goals while creating impact for the communities in which they operate. The Carbon by Indigo program builds prosperity from the ground up, with tangible benefits for local communities and their environment: cleaner air and water, more resilient soil and crop production, additional income for farmers and their families, and a legacy of stewardship across generations.”

Water Conservation and Carbon Removal Go Hand in Hand

Even though water conditions vary by region, the project achieved a notable result: on average, each metric ton of carbon removed conserved approximately 69,000 gallons of water. This demonstrates how regenerative practices enable farmers to adapt to changing climate conditions while enhancing productivity.

Supporting 150 Farmers Across Five States

Honda’s investment supports about 150 farmers near its U.S. operations in Alabama, Indiana, Ohio, North Carolina, and South Carolina. Altogether, these farmers manage 214,000 acres of farmland using regenerative methods.

Importantly, all carbon credits in the Carbon by Indigo program are independently verified by Aster Global Environmental Solutions and issued by the Climate Action Reserve, a widely trusted carbon registry.

READ MORE:

• Microsoft (MSFT) Signs $2.6 Million Soil Carbon Credit Deal with Agoro Carbon to Meet its Net-Zero Goals 
• Microsoft Buys 60,000 Soil Carbon Credits from Indigo’s Largest Carbon Crop 

Honda’s Road to Decarbonization: Cutting Emissions From Products and Operations

Honda has shown leadership in environmental efforts for over 50 years. Now, the company is moving quickly toward an electric and low-carbon future.

• It reported 296.86 million t-CO₂e in total global greenhouse gas emissions for FY2025. About 80% of these emissions come from product use (Scope 3 Category 11). The remaining 20% comes from direct operations and upstream/downstream activities.

Because of this, Honda is prioritizing emission cuts from product use and business operations. The company aims to reach full carbon neutrality by 2050, aiming to increase sales of electric and hybrid vehicles in North America and other major markets.

Triple Action to ZERO: Honda’s Framework for a Sustainable Future

Honda’s clean energy target is ambitious, and its environmental vision is shaped by its “Triple Action to ZERO” strategy, which includes:

1. Carbon Neutrality – achieving net-zero CO₂ emissions
2. Clean Energy – switching fully to carbon-free energy sources
3. Resource Circulation – creating products with sustainable and recyclable materials

These three actions connect to global climate and biodiversity goals. Honda also supports Nature-based Solutions, such as restoring forests and ecosystems, to increase its positive environmental impact.

Honda also trains suppliers through the Green Excellence Academy and supports dealerships through the Environmental Leadership Program, so the entire value chain can lower emissions.

Protecting Biodiversity Across the Globe

Honda is protecting ecosystems near its facilities through forest projects and greenbelt expansion. In Ohio, the company created the Honda Power of Dreams Forest, planting 85,000 trees over 40.5 hectares to restore riparian zones and create wildlife habitats.

Similar initiatives are underway in Europe and Brazil. In Belgium, Honda is restoring black poplar trees and building insect hotels and ponds to boost biodiversity. In the Amazon rainforest, Honda maintains 80% of its motorcycle test course as a protected conservation area and supports replanting endangered species like mahogany and rosewood.

A Long-Term Commitment to a Cleaner Future

Honda’s partnership with Carbon by Indigo reflects its broader mission to cut emissions, expand clean energy, and support sustainable communities. Through regenerative agriculture, renewable energy, circular manufacturing, and biodiversity programs, Honda is building a pathway toward a Zero Environmental Impact Society by 2050.

These efforts show how large companies can support climate solutions while strengthening local communities and protecting the planet for future generations.

• FURTHER READING: Scaling Sustainable Farming: AgreenaCarbon’s 2.3 Million Verified Carbon Credits Redefine Regenerative Agriculture 

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