Lithium stocks, like Albemarle, are on the run.
For one, lithium prices are on the rebound.
After a brief pullback, the supply-demand issue is forcing lithium prices higher again. Even analysts at Citigroup just said the collapse in lithium price is likely to be over, and prices could rebound by as much as 40% by the end of the year.
The firm added: “Chinese lithium carbonate prices plunged around 70 percent in just five months to a low of $US22,000 a tonne, but have since recovered to $US28,000 a tonne in the last few weeks. Citi attributed the rebound to improved market sentiment, demand from physical traders, recovering EV sales, and lower inventories in the supply chain,” as noted by Financial Review.
Two, Albemarle just announced a definitive agreement with Ford Motor Company to deliver battery-grade lithium hydroxide to support the automaker’s ability to scale electric vehicle (EV) production, according to the press release. Albemarle will supply more than 100,000 metric tons of battery-grade lithium hydroxide for approximately 3 million future Ford EV batteries. The five-year supply agreement starts in 2026 and continues through 2030.
At the moment, ALB is up another $2.67 to $206.82. We’d like to see it closer to $220.
