(Reuters) -Chile's SQM, the world's second-largest lithium producer, reported a 59% decline in quarterly profit on Wednesday due to lower lithium prices.

The company posted a second-quarter net profit of $88.4 million, missing analysts' estimates of $143.01 million, according to data compiled by LSEG.

Its revenue of $1.04 billion in the quarter was broadly in line with the analysts' estimates of $1.064 billion.

Lithium prices were down about 34% year-on-year, the company said.

Global prices for lithium, a critical component of electric vehicle batteries, have plunged nearly 90% since their peak in late 2022, causing producers worldwide to slash workforces and pull back on plans.

In June, SQM began laying off 5% of its Chilean workforce as it contended with a protracted slump in global prices for the battery metal.

"As anticipated, during the second quarter, we navigated a period of lower lithium market prices than those observed in previous quarters. In this context, some of the contracts we had in place, hit the lower limits set in those contracts, affecting the volumes agreed," SQM Chief Executive Officer Ricardo Ramos said.

Last month, Moody's lowered the miner's outlook to "negative" from "stable" due to uncertainty around lithium revenue, but affirmed the credit rating.

SQM, one of two companies producing lithium in Chile, also makes fertilizers and industrial chemicals. It is due to this year finalize a partnership with state-run copper producer Codelco to produce lithium in the Atacama salt flat.

(Reporting by Chandni Shah in Bengaluru; Editing by Mrigank Dhaniwala)