SQM sold record amounts of lithium in the first quarter, despite prices languishing at multiyear lows as one of the world’s top producers of the battery metal counts on low costs to grow market share.

The Chilean company said its sales volume jumped 27% year-on-year in the three months through March, feeding strong growth in the electric-vehicle market, especially in China, and new demand from energy storage systems. SQM reported earnings before items of $360-million, down from a year ago but ahead of estimates. Shares fell on Wednesday.

Global lithium producers have been grappling with a price crash that has taken the battery metal to the lowest levels in four years. SQM said prices reported for the first three months were similar to the prior quarter, but downward pressures could lead to “a slightly lower” average sales price in the second quarter.

The company, which mines in Chile and Australia and has a processing plant in China, is helping to feed a global glut that’s seen prices tumble from a late-2022 peak after slower-than-expected demand coincided with new supply coming on stream. That volume-over-value approach contrasts with cutbacks in output and spending by some higher-cost producers.

“In Chile we continue working to reach a total capacity of 240 000 metric tons of lithium carbonate and 100 000 metric tons of lithium hydroxide,” CEO Ricardo Ramos said in a statement. “All of this while we continue to process lithium sulfate in China.”

The Santiago-based firm, formally known as Soc. Quimica & Minera de Chile, said its Mount Holland refinery in Australia is on track to deliver its first product “in the upcoming months.”

SQM, which is closely watched because it’s more exposed to spot prices than peers, said in a slide presentation that it expects global lithium demand to grow about 17% this year. Still, the company sees “pricing pressure that could lead us to show a slightly lower average sales price” this quarter.

SQM’s shares were down 1.7% at 10am in New York trading, underperforming its peer-group average. The stock has lost 12% this year. A conference call to discuss results is scheduled for noon.