May 23 (Reuters) - Chilean mining company SQM,

the world's second-largest lithium producer, on Thursday posted

a net loss of $869.5 million for the first three months of the

year, as oversupply of the metal needed for EV batteries drags

on prices.

This brought a loss of $3.04 per share, well below the $0.74

expected by analysts polled by LSEG, while revenues more than

halved to $1.09 billion over January to March, below analysts'

$1.13 billion forecast.

A year earlier, the company had posted a close to $750

million profit.

SQM Chief Executive Ricardo Ramos, said that despite growth

in sales volumes, the quarter had been hit by average sales

prices for lithium that dropped over 75% to $12,600 per ton.

"Since our sales contracts are tied to market price indices,

our realized sales prices reflect the market price trends," the

company said in a statement, noting China remains the primary

market concentrating over 75% of lithium demand.

SQM's sales distribution follows the same pattern.

"We believe that the strong demand growth in lithium market

seen since the beginning of the year could continue for the

remainder of the year, with total lithium demand surpassing 1.1

million metric tons during 2024," Ramos said.

While SQM's quarterly lithium revenues fell 67% from a year

earlier, its lithium sales volumes grew 34%.

The company predicted volumes could climb some 18% to reach

200,000 metric tons this year, compared to 170,000 tons in 2023.

This compares to a 5% to 10% increase it had previously

forecast, when it warned of a supply glut.

The company plans to continue with its growth plans in Chile

and abroad, Ramos said.