Lithium demand is projected to rise 353% by 2030, driven by EV and energy storage needs, supporting Albemarle’s long-term outlook.
Albemarle (NYSE: ALB) shares remain flat in 2024 despite a rebound in lithium prices to $23 per kilogram, up from a $10/kg low in late 2024. The recovery follows a restocking cycle by battery manufacturers and rising demand for utility-scale battery energy storage systems (BESS).
Lithium prices collapsed from 2022 highs but found a floor in late 2024. Analysts project a 4% global supply deficit by 2026 due to curtailed expansion plans during the downturn. BESS output is expected to grow 35% year over year, fueled by renewable energy mandates and AI data center power demands.
Albemarle, the world’s largest lithium miner, has shifted to cost discipline, slashing capital expenditures by 46% year over year in Q1. The company idled high-cost capacity, positioning itself to benefit from long-term demand growth.