ABAT vs SQM: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ABAT and SQM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ABAT and SQM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

American Battery Technology Company (ABAT), based in Reno, Nevada, operates a commercial-scale lithium-ion battery recycling facility designed to process roughly 20,000 metric tonnes of feedstock per year into battery-grade metals such as lithium, nickel, cobalt, and manganese. The company recovers these critical minerals from end-of-life batteries and manufacturing scrap, aiming to feed them back into the domestic battery supply chain. In fiscal 2026 (the year ended June 30, 2026) revenue rose about 407% to roughly $21.7 million as throughput more than quadrupled, and the company reported a non-GAAP adjusted gross profit of about $1.7 million versus a $6.2 million adjusted gross loss a year earlier (on a GAAP basis it still posted a gross loss of about $3.1 million), and it has announced plans for a second, larger recycling facility designed to handle around 100,000 metric tonnes of battery materials per year.

Full ABAT guide

Sociedad Quimica y Minera de Chile, known as SQM, is a Chilean mining and chemicals company and one of the world's largest producers of lithium, a critical material for electric-vehicle and energy-storage batteries. SQM extracts lithium from brine in Chile's Atacama Desert, one of the lowest-cost and highest-quality lithium resources globally, under a concession with the Chilean state agency. Beyond lithium, SQM is a leading producer of specialty plant nutrients (potassium nitrate and specialty fertilizers), iodine (used in X-ray contrast media and other applications, where SQM is a global leader), and industrial chemicals. The company makes money selling these commodities and specialty products into global markets, with lithium being the most cyclical and most watched segment. SQM's fortunes are heavily tied to lithium prices, which swing sharply with EV demand and supply additions. Headquartered in Santiago, Chile, it trades in the US via American Depositary Receipts.

Full SQM guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ABAT drivers: Recycling ramp; Tonopah Flats lithium resource.
• SQM drivers: Low-cost Atacama lithium resource; EV and energy-storage demand growth.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: ABAT is an early-commercial, pre-profit company whose biggest risk is execution: scaling recycling to consistent profitability and financing and building the Tonopah Flats lithium project are both unproven and capital-intensive. For SQM, sQM's earnings are highly cyclical and dominated by volatile lithium prices, which have swung dramatically as supply additions outpaced demand at times, crushing margins.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ABAT if you believe its drivers more; SQM if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ABAT and SQM guides.

ABAT. ABAT is a speculative, early-commercial company, so traditional valuation multiples do not apply: it is pre-profit, burning cash, and funding itself largely through equity issuance and government grants. At roughly 10 times trailing revenue and about 4.5 times its June cash balance, the market still values it on the potential of the recycling ramp and the Tonopah Flats project, and the 73% one-year decline shows how sensitive the price is to dilution, export policy, and battery-metal prices.

SQM. SQM closes near $60.50 on October 16, 2026, down about 13% year to date but up about 36% over the past year, giving roughly 12x trailing and 9x forward earnings with a dividend yield near 4%. The low multiple reflects a cyclical peak-earnings discount: profits rebounded sharply in 2026 with lithium prices, and analysts expect 2027 revenue to ease. Earnings multiples remain noisy and are best read across a full cycle, with the November 17 Q3 report the next data point.

Headline figures (approximate, October 2026 (fiscal year ended June 30, 2026)): ABAT shows revenue (fy2026) ~$21.7 million (up ~407% year over year); Q4 FY26 ~$8.2 million, gross profit ~$1.7 million adjusted (non-GAAP); GAAP gross loss ~$3.1 million, net loss (fy2026) ~$73.4 million (EPS ~-$0.58), net loss (q4 fy26) ~$20.0 million (EPS ~-$0.15 vs ~-$0.06 consensus); SQM shows revenue (ttm) ~$6.7B, q2 2026 revenue growth ~137% YoY (~$2.47B), q2 2026 lithium sales volume record, >84,000 t LCE, net income (ttm) ~$1.4B.

ABAT and SQM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ABAT and SQM exposure against your real portfolio. It is not an investment adviser.