Chilean miner SQM, the world"s second largest lithium producer, reported a sharp rise in its third-quarter profits and said strong demand for the ultra-light battery metal key for electric vehicles was pushing up prices. The firm said late on Wednesday that net profits for the quarter were about $106 million compared to $1.7 million in the same period a year earlier, while revenues totaled $661.6 million, a year-on-year increase of 46%. "These results were mainly driven by much higher sales volumes in the lithium, iodine, specialty plant nutrition and potassium business lines, as well as higher prices," SQM Chief Executive Officer Ricardo Ramos said in a statement. He said the expansion of lithium operations was showing positive results and allowing SQM to increase sales volumes by more than 80% compared to last year. "We are already producing at a rate higher than 120,000 metric tonnes per year," he said, adding the firm continued to work towards a level of 180,000 tonnes capacity next year. Sales volumes this year could get close to 100,000 tonnes, he added, higher than earlier expected, buoyed by a market that Ramos forecast would grow about 50%. "This market growth is putting pressure on prices," he said. "We forecast average prices to be close to 50% higher in the fourth quarter this year when compared to prices reported in the third quarter 2021." Optimism in the global lithium industry has risen over last year, helped by an accelerating global push towards electric vehicles. In 2020, funding for mines and processing plants dried up because of the COVID-19 pandemic, prompting many to sideline expansion plans