With the lithium supply-demand story heating up again, we highlighted an opportunity in Albemarle (ALB) in January.

At the time, it traded at around $162.

Today, it’s up to $200 and still exploding higher. 

Fueling a good deal of upside, the world needs to get its hands on more lithium supply – and fast. As we know, lithium remains one of the most strategically important commodities for the global shift to vehicle electrification, clean energy, energy storage, and for the military, which requires lithium for high-density batteries to power drones, weapons systems, and communications. Lithium is also shifting from over-supply to a tight deficit again, creating opportunities for lithium companies.

In short, the outlook is becoming increasingly urgent. 

As Allan Pedersen, research director at Wood Mackenzie, explains: “The lithium market is heading into a supply crunch much sooner than many industry players expect. Under ambitious climate scenarios, we see deficits emerging from 2028. The industry needs to act now, as governments progress policies toward Net Zero. The question isn’t whether we need more lithium—it’s whether the industry can mobilize capital fast enough to meet demand while navigating an increasingly fragmented global trade environment.”

Analysts at UBS also raised their price target on ALB to $230 from $220 with a buy rating. 

Sincerely,

Ian Cooper