Shares of Chilean lithium supplier Sociedad Quimica Y Minera de Chile S.A. (NYSE: SQM) surged 5% thanks to China’s lithium mining permit cancellations, raising global lithium prices. While this may impact supply growth, SQM remains profitable and a solid bet for investors as lithium prices potentially rise.

The Bureau of Natural Resources in Yichun, Jiangxi Province, plans to cancel 27 lithium mining permits in January, leading to a 7.6% rise in lithium prices in China. Analysts believe this move won’t impact supply much, but it could increase the chance of future lithium price hikes.

The cancellation of expired lithium mining permits in China has stirred up the lithium market, creating potential for future price hikes. Sociedad Quimica Y Minera de Chile S.A. (NYSE: SQM) is already profitable and well-positioned to benefit from any future increases in lithium prices.

While Sociedad Quimica Y Minera de Chile S.A. (NYSE: SQM) is a strong player in the lithium market, it’s worth considering other investment opportunities. The Motley Fool Stock Advisor team has identified 10 other stocks with potential for significant returns, so investors should explore all options before making a decision.

Read more at Yahoo Finance: Why Sociedad Quimica Y Minera de Chile Stock Popped Today