This is Why Lithium’s 800 lb. Gorilla is Heading Higher

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Albemarle (ALB) – the lithium sector’s 800 lb. gorilla – could see higher highs.

For one, as we noted on May 22, “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.”

At the time, ALB traded at $206.82.

Nowadays, it’s up to $219.12 and still running with substantial catalysts.

For example, Morningstar just reported that “A temporary lull in demand from the expiration of China’s electric vehicle subsidies led to slow growth to begin the year. We see strong demand growth in the coming years driven by rising EV sales, as demand grows more than three times 2022 levels to 2.5 million metric tons by 2030.”

According to Stellantis CEO Carlos Tavares, there’s not enough lithium go around for the industry’s plans.  And, according to Elon Musk, “As we look ahead a few years, a fundamental choke point in the advancement of electric vehicles is the availability of battery-grade lithium.”

That being said, lithium prices are likely to push higher, taking ALB along with it.