On May 11, we noted, “Albemarle (ALB) is the lithium industry’s 800 lb. gorilla. And while it’s been beaten down on soft lithium prices, don’t write it off. Not only is it starting to pivot from major support, it could see massive upside. From a current price of $194.51, I’d like to see it run back to $290 before the year is up.” Today, it’s up to $205.67—and we still believe it could revisit $290 before year end.
All as lithium prices start to push higher on two key notes. One, according to the International Energy Agency (IEA), “Global sales of electric cars are set to surge to yet another record this year, expanding their share of the overall car market to close to one-fifth.” In addition, the IEA noted, “The new edition of the IEA’s annual Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to grow by another 35% this year to reach 14 million.”
Two, according to Stellantis CEO Carlos Tavares, there’s not enough lithium go around for the industry’s plans. In fact, he notes we need to replace 1.3 billion cars with clean mobility, which will need a substantial amount of lithium. All of which will require lithium supply we may not ever have access to.
Sincerely,
Ian Cooper
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