SANTIAGO – Chilean miner SQM, the world's No. 2 lithium producer, saw profits tumble in the last quarter of 2019 and warned that early 2020 sales in China, a key market for the battery metals used in electric vehicles, could be hit by impact of the coronavirus.

The lithium giant is the latest miner to report grim 2019 results as overproduction of the metal drives down prices and dents revenues.

SQM posted fourth-quarter net income of $66.9 million, a 38% drop compared to $108.6-million in the same period in 2018, according to its quarterly earnings statement. Gross profits slid more than 30% to $137.8-million.

Quarterly lithium revenues plunged 57.4%, battered by continued low prices, the company said.

It added that the oversupply driving the fall in prices could linger into 2020 and "further impact average prices this year when compared to 2019."

SQM CEO Ricardo Ramos said overall lithium demand nonetheless grew 14% in 2019, in line with the company's expectations. He called the uptick "significant" but "lower than expected."

"We believe that the fundamentals behind demand growth in the lithium industry are stronger than ever," Ramos said.

"During 2020, we believe the European electric vehicle market will gain momentum and contribute significantly to lithium demand growth," the company said in the statement.

In China, Ramos noted logistics had been dogged by the coronavirus but said there were signs things were getting back to normal.

"Depending on the evolution of the coronavirus outbreak, we may be able to recover some of those sales volumes and reach 55 000 to 60 000 metric tonnes in 2020."

SQM rival Albemarle, the world's largest lithium producer, last month reported lower-than-expected profits in late 2019 and forecast a double-digit drop in 2020 earnings on weak prices for the battery metal.

US lithium producer Livent also said it expects profits to drop in 2020.